Politicians have frequently directed harsh rhetoric toward particular corporate taxpayers that earn high profits. At times, this rhetoric has been accompanied by policy proposals that single out a narrow set of profitable taxpayers for disparate treatment. Perhaps the most notable example is the war against Big Oil.

This report examines the taxation of corporate gains on depreciable business property, an important topic that has received little attention in the economic literature.

By eliminating the deductibility of interest, accelerating depreciation schedules, and reducing the corporate tax rate, we can reduce the effective marginal tax rate and improve U.S. competitiveness.

Any policy to control carbon dioxide emissions should take the form of a carbon tax or a cap-and-trade system with all permits sold at auction.