Obama Business Tax Break May Cut $20 Billion From State Revenue
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President Barack Obama’s proposed tax break to encourage businesses to buy equipment may cost states $20 billion, adding pressure to governments struggling to close deficits, a report found.
Obama wants to allow companies through 2011 to deduct the full cost of capital investments in the year the expenses are made, rather than spreading write-offs across several years. That would hurt states whose tax codes model the federal government’s, said the Center on Budget and Policy Priorities, which advocates on behalf of poor and moderate-income Americans.