Commentary Ask a thousand random people what the 2017 tax reform law did, and probably none of them would tell you about full expensing of business investments—instead, they’d likely cite individual or corporate income tax reductions. And yet, the ability to immediately deduct investment expenses was one of the most important, pro-growth provisions in the entirety of the Tax Cuts and Jobs Act (TCJA). Now, though, it’s in danger of being phased out, unless Congress passes legislation sponsored by Rep. John Larson (R-Conn.) and other House Republicans to extend it. Economists and tax experts have long recognized the importance of incentivizing investment by allowing businesses to recoup some of the value of their investments through the tax code. Yet rather than allowing businesses to deduct the value of their investments immediately (known as “full expensing”), they were required to navigate complex amortization schedules that could spread out the timetable for recovering the value of …
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