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Politics : View from the Center and Left
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To: TimF who wrote (105007)2/26/2009 12:48:47 PM
From: Cogito  Read Replies (2) of 542588
 
>>If they have lower profits, they will still be investing. Even if they are not net investors (investing more than their existing capital stock depreciates), they are at the very least gross investors. That gross investment continues even if the net capital stock is shrinking, and a tax credit for it would help it to go further (for X amount of gross investment you get X+the benefit of the tax credit, in investment), and also help incentivise more of it (since the expected after tax return of the investment would be higher).<<

Tim -

As I'm sure you're aware, a lot of companies have been laying off workers because they are either making lower profits or actually losing money. Those same companies are not going to be investing at all, no matter what the tax rate is, and no matter what kind of credits you offer them.

- Allen
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