Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
What I'm saying is that today when you invest in something, like say a ship, you can depreciate it over say 20 years. This means that you can count 1/20th of the cost of the ship as a cost per year, for the coming 20 years. This reduces your booked profits and hence lowers your tax.

By turning all investments into costs, immediately (ie you can reduce your booked profits with the entire cost of the ship, right now) investments will be spurred, as every euro of investments will mean roughly 25 cents less in tax (given a corporate tax of 25 %). And money today is far more valuable than the same amount of money as an income stream spread over 20 years.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Wed Jan 26th, 2011 at 10:34:38 AM EST
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