Putting Their Foot Down
Putting Their Foot Down. I'm Greg Martin with today's Line On Agriculture.The U.S. House passed a permanent extension of bonus depreciation - which allows farmers and ranchers to immediately deduct half cost of new equipment - rather than spreading it out over several years - by a vote of 258 to 160. The bonus depreciation break has been renewed temporarily nine of the last 12-years - and Ways and Means Chair Dave Camp argues that's enough.
CAMP: The National Association of Manufacturers told Congress that the expiration of bonus depreciation at the end of 2013 has had a chilling effect on the economy. This statement is clearly supported by the fact for the first time in 3 months of 2014 total capital investment across the country fell by almost 12%, a major factor in why the entire U.S. economy contracted by nearly 3%.
A National Association of Manufacturers survey found over a third of its members would not make any investments this year without bonus depreciation and so-called Section 179 expensing - which the House voted in May to also make permanent. But a stalled Senate tax package extends bonus depreciation for just two-years - with the reasoning that comprehensive tax reform later will make more permanent tax fixes. House Democrats complained the House bill is not paid for and too costly. Camp says it pays for itself.
That's today's Line On Agriculture. I'm Greg Martin on the Ag Information Network.