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Obama Business Deduction Invites Gaming, Experts Say

President Barack Obama’s proposal to provide immediate deductions for the full cost of new equipment will encourage companies to game the system just to get the tax benefits, tax experts said.

In a speech today in Cleveland, Obama will propose a plan to let companies, through the end of 2011, deduct the full cost of capital investments in the year the expenditures are made, instead of writing off the expenditure over periods of as many as 20 years, White House officials said.