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Unpublished Paper
ExpressO (2015)
  • Mirit Eyal-Cohen, University of Alabama School of Law

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 economically inferior rule survived while its superior counterpart did not. The article reviews the reasons for this paradox. It shows that the causes are 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.

  • Fiscal,
  • Activism,
  • Small Business,
  • Investment Credit,
  • Immediate Expensing,
  • Sec. 179,
  • agency problem,
  • politics,
  • tax,
  • investment incentive,
  • capital
Publication Date
February 17, 2015
Citation Information
Mirit Eyal-Cohen. "LESSONS IN FISCAL ACTIVISM" ExpressO (2015)
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