But there is little evidence that immediate expensing significantly encourages more investment, said Steve Wamhoff, director of federal tax policy at the Institute on Taxation and Economic Policy, a progressive think tank in Washington.
That may be in part because a key audience for corporations—their investors—typically watch net income and per-share earnings, which aren’t affected by immediate expensing.
“Everyone assumes it’s going to encourage investment—there’s not really any evidence that it does,” Mr. Wamhoff said. Read more
