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1 William McBride, The Economic and Budgetary Effects of Bonus Expensing 1 (2014)

handle is hein.taxfoundation/taxfaal0001 and id is 1 raw text is: TAX(
FOUNDATION
The Economic and Budgetary Effects
Apr. 2014      of Bonus Expensing
No. 428
By William McBride
Chief Economist
Key Findings
50 percent bonus expensing allows all businesses to immediately
deduct (expense) half of their investment in equipment and
software, unlike the current depreciation system that delays
these deductions for years or decades.
Bonus expensing represents an important step toward full
expensing, which economists recognize to be ideal for investment
and economic growth.
We find that extending 50 percent bonus expensing on a
permanent basis would boost GDP by over 1 percent, the capital
stock by over 3 percent, wages by about 1 percent, and would
create 212,000 jobs.
These benefits go primarily to workers with low incomes due to
higher productivity, higher wages, and more jobs.
Due to the growth in wages and incomes, total federal tax
revenue would increase by about $23 billion per year.

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