There's No Business Like Show Business: $38 Billion Biz Tax Break Sounds Like Music

One - and only one - of the cards President Obama will play to restore political favor with the business community this year will be the extension of the bonus depreciation, which expired at the end of 2009.  Businesses will love how that sounds.  But it could be a flash in the pan, according to accounts in Bloomberg.com. 

One thing that happens when companies realize tax savings from depreciating property is that they pay higher taxes when depreciation has run its course.  Also, incentives like this one get mediocre grades from economists when it comes to effectiveness. They don't think that many jobs emerge from such incentives. Nor do some economists think that such incentives generate much investment spending.

Whatever the truth about the substance of business tax incentives, it makes proponents sound like entrepreneurial advocates.  That matters a lot to a president looking for ways to score points any way he can with as many friends and foes as he possibly can.

It's show time!