Group_3 - Group 3: Pan Hong Rong Li Hui Quan Tao Meng Jin...

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Group 3: Pan Hong Rong Li Hui Quan Tao Meng Jin Chen Shi Qiu Jiang Wang Shi Yu Xin The Wrong Spur for Small Business Investment The President's recent proposal to allow business owners to deduct expenditures immediately, instead of over time, won't encourage increased investment, says Scott Shane About author: Scott Shane is the A. Malachi Mixon III Professor of Entrepreneurial Studies at Case Western Reserve University. His book Illusions of Entrepreneurship: The Costly Myths That Entrepreneurs, Investors, and Policy Makers Live by (Yale University Press, 2008) was one of the top ten business books of the year for Amazon.com. His 2005 book Finding Fertile Ground: Identifying Extraordinary Opportunities for New Businesses won the 2006 Golden Book Award for best business book of the year and has been translated into eight languages. The author of numerous scholarly articles and books, Shane was the 2009 winner of the Global Award for Entrepreneurship Research. ( Source: http://www.businessweek.com/bios/Scott_Shane.htm ) President Barack Obama recently proposed to let businesses immediately deduct the full cost of expenditures made from now until the end of 2011 as a way to stimulate business investment. This proposal differs from the provisions in the job
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bill that just passed the Senate. Scott Shane does not agree that this accelerated depreciation will stimulate economic growth and create a lot of jobs as Administration’s opinion Definition of Accelerated Depreciation A depreciation method which allows faster write-offs than the straight line method. These methods provide a greater tax shield effect than straight line depreciation, and so companies with large tax burdens might like to use accelerated depreciation methods, even if it reduces the income shown on financial statement. Accelerated depreciation methods are popular for writing-off equipment that might be replaced before the end of its useful life since the equipment might be obsolete (e.g. computers). One example of an accelerated depreciation method is the Modified Accelerated Cost Recovery System (MACRS). (Source: http://www.investorwords.com/35/Accelerated_Depreciation.html) Expenditure (n): amount of money spent on something Deduct (v): take away an amount or part from something Propose (v): to offer or suggest (a matter, subject, case, etc.) for consideration, acceptance, or action Stimulate (v): make something develop; make sb interested and excited about sth Provision (n): condition or requirement in a legal document Bill (n): a form or draft of a proposed statute presented to a legislature, but not yet enacted or passed and made law Administration (n): the management of public affairs; government
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The Senate (The United States Senate): The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S.
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Group_3 - Group 3: Pan Hong Rong Li Hui Quan Tao Meng Jin...

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