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Unpublished Paper
The Origins of Affirmative Fiscal Action
ExpressO (2014)
  • Mirit Eyal-Cohen, University of Alabama School of Law
Abstract

This article highlights an anomaly. It shows that two tax rules aimed to achieve a similar goal were introduced at the same time. Both meant to be temporary and bring economic stimuli, but received a dramatically different treatment. The less efficient or economically inferior survived. Its superior counterpart did not. The article reviews the reasons for this paradox. It shows that the reason is both political and an agency problem. The article not only enriches an important and ongoing debate that has received much attention in recent years, but also provides important lessons to policymakers.

Keywords
  • small business,
  • tax,
  • investment credit,
  • expensing,
  • depreciation,
  • New Economics,
  • fiscal intervention,
  • fiscal activism
Publication Date
August 12, 2014
Citation Information
Mirit Eyal-Cohen. "The Origins of Affirmative Fiscal Action" ExpressO (2014)
Available at: http://works.bepress.com/mirit_eyal-cohen/3/