Wednesday, October 16, 2013

Tax Subsidies, Plant and Equipment, Anti-Growth

RealClearMarkets - Why Tax Subsidies For Plant & Equipment Are Anti-Growth" . . . when the tax code is written to encourage equipment buys through subsidy of same, the availability of capital goods is distorted. While FedEx may hold off on buying new delivery trucks absent tax subidies that lower the cost of doing so, it may enter the market for new capital goods if the subsidy is offered. If so, FedEx's accession of always limited equipment may deter a future Dennis Washington from buying what's needed to start a business thanks to the tax subsidy making competition for capital goods greater than it would otherwise be. . . ." (read more at the link above)

 more New Normal News below

No comments:

New Normal - Google News