CERF Blog

Mankiw has a post on the administration’s proposed changes in the tax treatment of investment.  As usual, he is right on.  The proposed treatment amounts to a zero interest loan, at a time when interest rates are already remarkably close to zero: However, the impact will be relatively modest. Notice that expensing merely accelerates deductions.… Read more

I’ve seen lots of proposals on how to accelerate our economic recovery, but I haven’t seen any investment tax credit proposals. Maybe there are some out there, but I haven’t seen them. The idea has merit, and now might be a good time to implement it. Business investment has been extraordinarily weak for a long… Read more