Companies will Top I Am 1776% Sure No One Will Be Taking My Guns Shirt. Not every company will spend all their piles of cash on investing in their own businesses and those are the businesses corporate taxes should target. This is why it’s silly to go after Amazon for corporate taxes (when they heavily reinvest their profits) vs Google/Apple who don’t and literally sit on mountains of cash. But hey, the reddit hivemind loves to pick on Amazon. They’ve been parking the money overseas to avoid taxes on it. That’s why there have been some efforts to incentivize repatriation of that money to stimulate investment in the US by these companies. Yeah I’m not super knowledgeable on that practice but it seems like it would be a great target for future tax revision laws. Most suggestions I see on here aren’t though.
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It’s all a Top I Am 1776% Sure No One Will Be Taking My Guns Shirt. Front load and save now and have less to deduct in the future. They actually would have been better off by not front loading because tax rates are going up. The second is when it is done a “booster” for spending. Give companies accelerated depreciation and they will spend more money now. Sometimes this is used as an economic stimulus. It increases economic churn (GDP), it creates jobs, etc. It is basically a stimulus without having to have the government directly spend the money. So periodically you see Congress get the good idea of incentivizing spending in certain areas with accelerated depreciation. Perhaps this was most notable when Congress gave accelerated depreciation on some small trucks. Hummer H2s fell into this category. And businesses bought a lot of Hummer H2s real fast.
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