uses it extensively as a part of tax-incentive programs based on the theory that tax benefits stemming from depreciation … to control inflation and thus, over time, has extended significant tax advantages to businesses through depreciation … intended to achieve various economic goals considered desirable by the U.S. Congress. The depreciation allowance is one such …

In the 15 years since the depreciation rules were calculated to approximate economic depreciation for structures and … equipment, that neutrality (using a constant set of economic depreciation estimates) has been somewhat undermined by a … relatively more favorable treatment of equipment due to lower inflation and a lengthening of class lives for structures. An …

novel explanation: distortionary taxation. Economic theory suggests that when investments that are substitutes for one … optimal tax theory and the distortion problem. Part V contrasts taxation of favored investments with taxation of higher …