This week, the House of Representatives will be voting on a permanent tax credit for business research and development. While many conservatives support this, there's another temporary tax provision in even greater need of permanent status--the 50 percent bonus depreciation tax cut.
Major free market groups sent a letter to this effect to the House. The full text can be found here. Below is an excerpt:
The capital stock of the economy grows when businesses and households deploy scarce resources toward investments. When a farmer buys a tractor, or an architecture firm buys a computer, they are investing in their own productivity: the farmer can grow more crops; the architecture company can design better blueprints. This increased productivity results in more company profits, higher wages, new jobs, and an increased return to shareholders in their 401(k)s and IRAs. Capital investment is the mother’s milk of wealth creation.