Depreciation a real benefit?

[Christian Gregory]

> In the US, the profit before taxes shown on the Profit and
> Loss/Income statement of each firm is subject to Federal income
> tax, not individual purchases of capital(depreciating) or
> consumed(expensed) items by the firm.
>

Right. As I figured out after I sent the last message, since tax brackets
are supposed to be indexed, there wouldn't really be much point to having an
index for depreciation charges. After the first year, the bracket index
would in theory prevent any net loss or gain on tax rev.

Christian