> depreciation is
> a way to increase current tax revenue (by stretching out the
> _ultimately allowable_ deduction) at the expense of future tax
> revenue. AMT is also a mechanism to do this, albeit more directly by
> deferring a deduction that's allowable only if you have other income to
> get taxed on.
Are depreciation charges indexed to inflation? Or are the charges against the value in the purchase year?
Also (and I'm really asking), wouldn't depreciation only increase current tax revenue compared to leasing or consumption taxation (ie full taxation in the first year)? If charges are inflation indexed, depreciation seems more like a net loss on the gov't income from taxes.
Christian