Ag Policy Blog

White House Opposes Bonus Depreciation Bill

By Todd Neeley , DTN Staff Reporter

The House of Representatives could debate and vote Friday on a bill to permanently extend 50% tax deductions for business expenses, or "bonus depreciation."

The bill is HR 4718. A Congressional Research Service study earlier this week downplayed the significance of bonus depreciation in compared to other tax cuts of federal spending increases. Nonetheless, business groups are strongly supporting the bonus depreciation bill.

The White House issued a statement opposing the bill, stating bonus depreciation was considered a short-term stimulus in 2009 and never considered, "and it was never intended to be a permanent corporate giveway." Further, the White House stated the bill has no offsets and would add $287 billion to the deficit over 10 years, "wiping out more than one third of the deficit reduction achieved by the American Taxpayer Relief Act of 2013."

The Joint Committee on Taxation in May projected the bill would add $262.9 billion to the federal deficit over 10 years.

The Tax Foundation, however, maintains that extending bonus depreciation boosts GDP by more than 1%, boosts capital stock, increases wages and creates more than 200,000 jobs. The Tax Foundation also argues the provision increases federal tax revenue collected by $23 billion because of the resulting economic activity.

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CRAIG MOORE 7/22/2014 | 8:29 AM CDT
Jay?
CRAIG MOORE 7/21/2014 | 10:36 AM CDT
Jay, I know you are coming back to see what I got for you. Care to answer?
CRAIG MOORE 7/18/2014 | 9:14 AM CDT
How much does a farmer pay back after he gets a $19,000 grant to get a more efficient grain dryer? Jay should be able to answer this one. Jay?
CRAIG MOORE 7/17/2014 | 8:19 AM CDT
Jay?
CRAIG MOORE 7/16/2014 | 8:17 AM CDT
That's because Obama is tossing it all to HIS fat cat friends, which is why he has attended almost twice as many fund raisers than the last pres. And how much does a farmer have to spend to get $320,00 in commodity subsidies?
Jay Mcginnis 7/16/2014 | 7:19 AM CDT
No it isn't far Craig but you might have a long time waiting for your "trickle down" which is a failed policy of the GOP.
CRAIG MOORE 7/15/2014 | 8:34 AM CDT
Because I work on Main Street, yes I am still waiting for it to show up. And when they cut all federal donations to Wall Street, $45 billion per month now, then we will find out the real status of the market. And last week when they added 288,000 jobs 275,000 of them we part time. Yea, it's getting better. And really, I don't understand why Obama has all those people trying to help him out as all he would have to do is bring Jay to DC as he has all the answers. And it isn't too far from White Hall to DC is it Jay?
Jay Mcginnis 7/14/2014 | 4:04 PM CDT
Well business is doing very well now, have you seen the stock market? Rich are getting richer and richer,,, still waiting for your trickle down Craig??
CRAIG MOORE 7/14/2014 | 3:32 PM CDT
Why is it that the government is all for throwing stimulus money out there, which some make its way to the private sector, but don't want money going directly to the benefit of private business which actually stimulates the economy?