Proposed tax breaks by President Barack Obama on new capital investments are expected to save businesses $200 billion over two years, The Associated Press reported Tuesday, September 7. Obama will speak about the proposal at a speech in Cleveland on Wednesday
The tax breaks will allow businesses to write off 100% of new capital investments through 2011, the AP writes. The cost to taxpayers over the next 10 years would be $30 billion, “with most of the money lost in tax revenue being recouped as the economy strengthens.”
The proposal expands on stimulus measures from 2008 and 2009 that allowed businesses to depreciate 50% of their capital investments, the AP writes.