Don't forget the provision to write off the whole amount of an asset in 2011

[WCGreen]

instead of having to spread out the cost over the life of the asset...

It's really a cash flow gimmick and will actually force corporate accounts to have two sets of books. One for tax purposes and one for FASBE requirements.

They already do that but the amount of the depreciation is a little closer to the out flow of cash.

It's really could be a good thing for the economy because it could, stress the could, entice some of the corporations sitting on cash to spend it on assets so they can write off the whole cost in 2011.

They can finance at almost no cost.

This makes more sense than some of the other stimulus gimmicks that have been floated...

[CaliforniaPeggy]

1. And the corporations are certainly sitting on mountains of cash.

Instead of hiring people. Or buying new equipment...

Or almost anything.

[WCGreen]

3. It's a real good insentive...

[OlympicBrian]

2. It's really an extension of the old stimulus package nt

[WCGreen]

4. This is a change in depreciation...

[OlympicBrian]

5. So if people upgraded capital equipment last year under the stimulus package, no need to again nt

[WCGreen]

6. I don't think a lot of companies did...

I think there is more optimism out there now

[OlympicBrian]

7. LOL what do you think drove GDP over the past year? (see graph)

http://www.bea.gov/briefrm/gdp.htm

[WCGreen]

8. And that did so well...

Scoff if you will but the last two years was about getting back to 2006 levels and now they can use this stimulus to use that cash.

[OlympicBrian]

10. Yes, in China nt

[WCGreen]

9. Also, the president specifically said a business would be able to

write off the full cost of an asset in 2011. In the prior stimulus, the cap was 250k