Ag Policy Blog
Todd Neeley DTN Staff Reporter

Thursday 07/10/14

White House Opposes Bonus Depreciation Bill

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.

Follow me on Twitter @ChrisClaytonDTN

Posted at 10:21PM CDT 07/10/14 by Todd Neeley
Comments (9)
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?
Posted by CRAIG MOORE at 3:32PM CDT 07/14/14
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??
Posted by Jay Mcginnis at 4:04PM CDT 07/14/14
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?
Posted by CRAIG MOORE at 8:34AM CDT 07/15/14
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.
Posted by Jay Mcginnis at 7:19AM CDT 07/16/14
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?
Posted by CRAIG MOORE at 8:17AM CDT 07/16/14
Jay?
Posted by CRAIG MOORE at 8:19AM CDT 07/17/14
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?
Posted by CRAIG MOORE at 9:14AM CDT 07/18/14
Jay, I know you are coming back to see what I got for you. Care to answer?
Posted by CRAIG MOORE at 10:36AM CDT 07/21/14
Jay?
Posted by CRAIG MOORE at 8:29AM CDT 07/22/14
Post a Blog Comment:
Your Comment:
DTN reserves the right to delete comments posted to any of our blogs and forums, for reasons including profanity, libel, irrelevant personal attacks and advertisements.
Blog Home Pages
October  2014
S M T W T F S
         1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31   
Subscribe to Ag Policy Blog RSS
Recent Blog Posts
  • Biotech Label Battles Continue at Ballot Box
  • Cattle Industry, Land Group Presses Feds to Pull WOTUS Rule
  • USDA Moving Ahead with Beef Checkoff Plans
  • Politicos Weigh in on USDA APH Yield Exclusion
  • Views in Congress Vary on COOL
  • Vilsack Addresses Checkoff Controversy
  • GAO: 'USDA Needs to Better Communicate Climate Plan'
  • Offering Advice on Farm Bill Choices
  • Governors, Attorneys General say CWA Rule a Legal Threat to Farmers
  • Dem Senators ask President to Leave RFS Alone
  • Senators Push for Withdraw of Endangered Species Act Rule
  • ARC and the PLC Reference Price
  • Beef Promotion Leads to Beef Politics
  • Small Business Advocacy Group Calls for CWA Rule to be Withdrawn
  • CRP, Base Acres and Proof for Yield Updates
  • Business Groups: Withdraw WOTUS Rule
  • Photo Fees on Public Lands? C'Mon, Man!
  • USDA ARC-PLC Rollout and Decision Tools for Farmers
  • Point, Counterpoint on EPA's Waters of the U.S. Rule
  • Point, Counterpoint on EPA's Waters of the U.S. Rule