Where the Money IsThe Big Corporate Tax Breaks
This chapter is about the three largest tax breaks for domestic profits: accelerated depreciation, the research credit, and the deduction for domestic production activities. Downsizing these three benefits will be the first thing legislators will look to pay for cuts in tax rates. But first, an important bit of corporate tax history.
The Investment Tax Credit
Before it was eliminated during our last corporate tax reform, the tax credit for the purchase of new equipment was the big kahuna of corporate tax breaks. In 1985, a year when total corporate tax collections were $61 billion, corporations ...