Why Policy Dictates the Economic Outlook

Why Policy Dictates the Economic Outlook

Why Policy Dictates the Economic Outlook

17:52 12 February in Blog, Uncategorized
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Why Policy Dictates the Economic OutlookLast year, small businesses made capital investment decisions over “whether an expiring tax provision, Sec. 179—which allowed for $500,000 of accelerated depreciation for equipment purchases—would be continued, or whether a scaled-down version with a much lower threshold of $25,000 would take its place,” according to The Wall Street Journal.

In December, Congress reinstated the larger Sec. 179 deduction for 2014, meaning that small businesses were pushed to make decisions surrounding equipment purchases before knowing what the tax provision stated. On the first of January, the deduction dropped back to $25,000.

Such temporary tax and budgetary policy making creates roadblocks for consumers and business to plan and invest in the future.   Comprehensive tax reform and annual federal budgets are a necessity for businesses to plan their capital investment and capital expenditures budgets.  Inevitably, legislation creates economic ambiguity. In order to improve the economic outlook, more stable laws are vital.

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