In addition, the agreement extends 50 percent bonus depreciation, a cost-effective temporary measure to support investment and growth.
On the other hand, a temporary tax break for investment could well work, encouraging firms to bring forward capital spending.
There are also proposals for a permanent research and development tax credit, temporary expensing of business investment, and payroll tax holidays.
He said Labour needed to offer an economic alternative that met the twin challenges of boosting growth now through temporary tax cuts and investment in jobs and delivering reform over the longer term to build "responsible capitalism".
He added that Labour must offer an economic alternative which meets the twin challenges of boosting growth now through temporary tax cuts and investment in jobs and delivering reform over the longer term to build "responsible capitalism".
You might wonder, for the umpteenth time, why - if things are so bad - the IMF doesn't say temporary tax cuts or public investment would be helpful right now?
There was a deal to be had: keep up spending in the short term, with a stress on much-needed infrastructure investment, as well as extending the temporary tax cuts, in exchange for a big medium-term reduction in the deficit, centred on entitlements and tax reform.
If low growth comes to pass - if growth stagnates and unemployment refuses to fall back - the IMF recommends a new round of quantitative easing by the Bank of England combined with "temporary tax cuts" aimed at people on low incomes, investment and job creation.
So I want to urge all businesses with capital needs to take advantage of this temporary expensing provision, because we expect it to lower the average cost of investment by more than 75 percent for companies like Thompson Creek.
More investment and exports and a competitive real exchange rate can also give a temporary boost.
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