A few key facts about today’s House Republican vote to make bonus depreciation permanent at a cost of $287 billion:
* FLIP-FLOP - In February, Ways and Means Republicans proposed repealing bonus depreciation. Congressional Research Service notes: “Moving to permanent bonus depreciation is inconsistent with … Chairman Camp’s proposal."
* ALWAYS TEMPORARY - Bonus depreciation was enacted in 2002 during economic downturn. It was allowed to expire in 2005 as the economy improved. It was re-enacted in 2008 as economy worsened. It was never intended to be permanent.
* INEFFECTIVE IF PERMANENT - Here’s what the Congressional Research Service says about the tax policy: “It was enacted for a specific, short-term purpose: to provide an economic stimulus during the recession. Its temporary nature is critical to its effectiveness."
* $1.4 MILLION A JOB?? - Even if you believe the Republican claim that making it permanent at a cost of $287 billion would create 210,000 jobs - which it would not, considering the provision becomes ineffective when made permanent - what Republicans are proposing is to spend $1.4 million for each job.
