Not Just Progressives: Koch Industries Study Targets Full Expensing Proposal in House GOP Tax Plan

Jun 9th, 2017

"Full expensing is [Koch Industries'] new target, according to a study from the company.

Lowering corporate tax rates is a more effective way to spur economic growth than full expensing, which allows companies to immediately deduct the cost of new equipment and machinery, it said.

The study, conducted by Quantria Strategies, suggests the House plan could have a 17 percent tax rate—lower than its current 20 percent rate—if it eliminated the border adjustment tax and full expensing. The plan could retain the deduction for interest expense and make the 50 percent bonus depreciation permanent, it said.

Full expensing 'for us, doesn’t lead to any more investment, which doesn’t lead to any more jobs,' Evan Alexander, Koch’s director of public sector business development, said at a briefing May 16. 'Lowering the rate from our commercial perspective is eight times more potent... this is actually how we think about capital and how we deploy it.'"

https://www.bna.com/koch-study-takes-n73014451093/