House Votes For Tax Breaks To Add $287 Billion More To Deficit
WASHINGTON -- The GOP-led House of Representatives embraced a former stimulus measure Friday, voting to make it and another related tax cut permanent, adding $287 billion to the deficit over the next 10 years.
The largest part of the cut, worth more than $263 billion, is making permanent so-called bonus depreciation, which allows businesses to write off the cost of capital investments and improvements much more quickly.
It was enacted twice during the administration of President George W. Bush, and the most recent version expired last year. The idea behind it is that if lawmakers give businesses a break during tough economic times, they will speed up major equipment purchases and stimulate economic activity.
Those who support making such a stimulus measure permanent argue that it would give businesses the certainty to be able to plan their investments.
But opponents -- primarily Democrats -- mocked the idea, pointing to Congressional Research Service reports that found the break was a weak stimulus to begin with, and that the stimulative effect is likely to fall even further if the break becomes permanent.
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http://www.huffingtonpost.com/2014/07/11/tax-breaks_n_5577957.html?utm_hp_ref=politics
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