Since 1951, U.S. industry has built some $31 billion worth of new plants and equipment with the aid of the fast tax write-off, a device designed to permit defense businesses to cut their tax bills by amortizing expansion costs faster than normally. But still, industrialists do not think that they have expanded enough.
Steel companies, for example, working almost to capacity, want fast write-off certificates for more than $1 billion more for expansion; aluminum companies want to add $424 million more in new plants.
Last week DDM Chief Arthur Flemming doused their hopes.
Further expansion in most industries, said he, will push...