Manufacturers, the largest sector using expensing, a tax provision that lowers the cost for companies making new business investments, such as in machinery and equipment used on the plant floor, got a boost today by the President’s proposal in support of temporary expensing from September 2010 through 2011. President Obama outlined the plan during a visit to the Stromberg Sheet Metal Works facilities in Beltsville, Md. (Remarks.)
This proposal, if not counteracted by punitive tax increases on business, is a way to boost job creation for the workers needed to build and the workers needed to run the new machinery.
With 2010 3Q GDP today registering anemic 2 percent growth and a relentless unemployment rate hovering at 9.6 percent, increased expensing is a proven, effective tool for powering new jobs. In fact, increased expensing was successfully launched by both a Republican Administration after the 2001 terrorist attacks as well as by the current Democratic Administration in recent stimulus laws. This issue might be just the trick (no pun intended on this eve of the eve of Halloween) to foster bipartisanship consensus at both ends of Pennsylvania Ave — between Congress and the Administration.