As a matter of tax policy, many politicians have used the concept of depreciation as an economic stimulus. For example, the Bush tax cuts after 9/11 were responsible for Section 179 depreciation as well as bonus depreciation.

The argument was that by allowing aggressive depreciation companies would have incentive to purchase equipment and stimulate the economy through manufacturing. Has this strategy worked? Base your answer on research and expert analysis.


Discuss arguments that support this as working, as well as failure.