[Congressional Record Volume 147, Number 178 (Thursday, December 20, 2001)]
[Extensions of Remarks]
[Page E2382]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E2382]]
                  REMARKS ON ACCELERATED DEPRECIATION

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                        HON. CHARLES A. GONZALEZ

                                of texas

                    in the house of representatives

                      Thursday, December 20, 2001

  Mr. GONZALEZ. Mr. Speaker, I would like to express my strong support 
for efforts to increase the depreciation deduction. In my view 
accelerated depreciation is one of the most efficient and effective 
ways for Congress to spur business investment in our country.
  Mr. Speaker, as you know this year has seen a dramatic drop off in 
business investment. Business investment was one of the foundations of 
the economic boom that our nation enjoyed during the Clinton 
Administration. It is therefore critical that Congress does what it can 
to restart the capital investment engine that has propelled our 
nation's economy to extraordinary heights over the last decade.
  Mr. Speaker, in addition to reductions in interest rates and 
balancing the budget, one of the most important things the Federal 
Government can do to increase business investment, in my view, is to 
accelerate the depreciation schedule for business purchases. 
Depreciation schedules reflect the Federal Government's own somewhat 
arbitrary calculation of what is the economic life of capital. 
Accelerating the depreciation allowance for new capital investments 
provides a direct and immediate incentive for businesses to build 
factories, purchase new equipment, and generally expand operations. 
This inevitably creates jobs and results in a long term improvement in 
the productivity rates of American industry. Additionally, unlike many 
other proposed tax incentives, accelerated depreciation is directly 
tied to business investment. A business-person can not enjoy this tax 
incentive unless he or she commits to a capital expenditure.
  Mr. Speaker, it is for these reasons, I firmly believe that the long 
term economic benefits of accelerated depreciation far outweigh the 
immediate revenue loss consequences of any such tax cut. It is my hope 
than in the 2002 session of the 107th Congress we will pass into law an 
acceleration of the depreciation allowance.

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