For small business owners who operate as a pass-through entity (a partnership or a sub S), the bonus depreciation deduction ultimately comes through on their individual tax returns.
It provides support for arguments by U.S. companies that they face a competitive disadvantage in the U.S. marketplace, since most non-U.S. multinationals except Japan already have lower taxes before the added bonus of an effective tax rate reduction when they establish an American subsidiary.
Last week they voted against Labour's motion on the bonus culture, greater transparency on top pay and the need for a new tax on bank bonuses to fund 100, 000 jobs for young people.