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Unintended Consequences Of Corporate Tax Incentives

Sunday, February 26, 2017 0:56
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by Gene D. Balas

We don’t yet know what, if any, forthcoming tax proposals will become law. However, one potential idea that might be included in such a plan could be to encourage businesses to invest more in their property, plant, equipment, and technologies. After all, in the long run, that would likely help the economy, as it may boost productivity – an essential ingredient in the potential growth rate of the economy. And in the short term, the very investment itself is a direct addition to GDP.


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