Economic Stimulus Package — Time to Act: Now
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Erik Cagle
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Sample I
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(Total 2008 Purchases Do Not Exceed $800,000)
Example Price (Without Tax Cut): $100,000
Enhanced Sec. 179 Small Business Expensing Provision = $250,000/year (Up to $800,000 of Investment)
Total First-Year Depreciation = $100,000 (100% of New Asset)
Tax Savings = $40,000 (Assuming 40% Effective Tax Rate)
New Effective Price With Tax Cut = $60,000 (a 40% Savings)
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Erik Cagle
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