Capital Allowances in Europe, 2023
Capital allowances play an important role in a country’s corporate tax base and can impact investment decisions—with far-reaching economic consequences.
4 min read
All Related Articles
Design Matters When Raising Taxes to Reduce the Deficit and Stabilize the Debt
Rather than continue down the path of growing debt, lawmakers should craft a comprehensive solution. International experience cautions against tax-based fiscal consolidations, but modest tax increases may be part of a successful debt reduction package.
6 min read
New Jersey Should Take Opportunity to Make Corporate Taxes More Competitive
By letting the corporate surtax expire, eliminating taxes on GILTI, and embracing full expensing, New Jersey would take important steps toward creating a more welcoming and competitive tax environment.
6 min read
Capital Cost Recovery across the OECD, 2023
To recover from the pandemic and put the global economy on a trajectory for growth, policymakers need to aim for more generous and permanent capital allowances. This will spur real investment and can also contribute to more environmentally friendly production across the globe.
33 min read
Mississippi’s Capital Improvement Plan Leads in the South and Nationwide
A recently enacted bill in Mississippi made the Magnolia State only the second state in the country to make full expensing permanent. The bill joins reductions to the individual income tax and capital stock tax rates, already in progress, as model, pro-growth reforms for the region.
5 min read
Biden’s New Tax Proposals Are Complicated and Rife with Double Taxation
Tax reform should be about increasing fairness. And the way to get there is by reducing complexity and double taxation, not by doubling down on them.
6 min read
Return to R&D Expensing Crucial for Manufacturing and Technology Investment
The tax treatment of research and development (R&D) expenses is one of the biggest issues facing Congress as the year winds down.
5 min read
Permanent 100 Percent Bonus Depreciation Even More Important When Inflation Is Elevated
We find that the dynamic cost of permanent bonus depreciation rises by about 7 percent under 4 percent inflation, but the economic benefit, measured by the size of the economy, rises by about 25 percent.
4 min read
The Economic, Revenue, and Distributional Effects of Permanent 100 Percent Bonus Depreciation
The phaseout of 100 percent bonus depreciation, scheduled to take place after the end of 2022, will increase the after-tax cost of investment in the U.S. Permanently extending it would increase long-run economic output by 0.4 percent and increase employment by 73,000 FTE jobs.
20 min read
Chips Are Down in Semiconductor Tax World
The Senate has begun debate on the so-called Chips bill, which would provide $52 billion in grants and $24 billion in tax credits to supposedly strengthen the production of semiconductors in the U.S.
3 min read
New Research Shows Positive Long-Run Effects from Corporate Tax Cuts
Policymakers should continue to focus on longer term impacts rather than emphasizing the short-term stimulus effects of tax cuts.
3 min read
Improving Tax Treatment of Structures Offers Commonsense Way to Boost Competitiveness
The U.S. tax system is biased against capital investments. Ending these tax penalties would boost economic output, productivity, and employment.
5 min read
Taxes, Tariffs, and Industrial Policy: How the US Tax Code Fails Manufacturing
Policymakers actively marginalized the manufacturing sector by saddling them with cost recovery rules that prevent them from deducting the full cost of investment in physical plant and equipment. Going forward, policymakers should avoid haphazard fixes, targeted measures, and protectionism.
50 min read
10 Tax Reforms for Growth and Opportunity
By reducing the tax code’s current barriers to investment and saving and simplifying its complex rules, lawmakers would greatly enhance the ability of Americans to pursue new ideas, create more opportunities, and build financial security for themselves and their families.
40 min read
