As N.C. lawmakers consider the next steps in state tax reform, a new John Locke Foundation report recommends a change that would help spur more investment in big-ticket capital items: Replace depreciation with “expensing.”
In other words, allow businesses to deduct the full costs of their expenses in the year in which those costs occurred, rather than forcing them to spread the deductions out over a series of years based on a schedule set by the government. Report author Roy Cordato says the change would help improve the state tax code’s bias against certain types of investment.
Learn more here and by watching the video clip below.
