Sunday, September 11, 2011

Jobs Plan - Expensing Capital

Another part of the President's job plan is intended to help small business. It includes expensing capital, government reforms and a reduction in regulations.

Expensing capital will probably help increase investment. It lowers the cost to the company and provides a faster payback on their investment. The downside is that the government gets the same amount of tax revenue, just later rather than sooner.

The government reform and regulation reduction looks pretty iffy. Business will wait and see if they really happen. On the flip side, new regulations will continue to be written for the next year or two just to implement the healthcare law and Dodd-Frank. On net, this will be an increase in regulation.

This portion of the President's plan doesn't reduce the major cause of the uncertainty businesses face, so I don't think it will make much difference.



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