for workers who don’t live with their children, allowing businesses to once again write off the full cost of research in the year the expenses are incurred, extending more generous “bonus depreciation” of capital equipment, and allowing more liberal rules for firms to deduct interest costs. TPC assumed all those changes would be permanent and retroactive to the beginning of 2022.
Of all the provisions, the biggest revenue loss would come from making bonus depreciation permanent. It would lower revenue by roughly $250 billion in the first 10 years. However, since expensing largely results in a change in the timing of tax payments, the revenue loss for the next 10 years would drop to about $155 billion.
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