[phil_will1]

"But even without the IRS, accountants will still depreciate."

True, but they will only have to keep track of one set of depreciation numbers, not two. There will no longer be separate calculations for tax depreciation and book depreciation when the FairTax passes.

:-)

[Gvl_M3]

"True, but they will only have to keep track of one set of depreciation numbers, not two. There will no longer be separate calculations for tax depreciation and book depreciation when the FairTax passes."

This is what I'm trying to understand. If we are able to charge less depreciation against net worth, not revenues, we can show more profit, or charge less for our service. To the tune of 1/7th of our capital budget. We can also make purchases that will be more beneficial to our company. We currently lease most vehicles because it "costs" too much to have to depreciate them. We lease computers for the same reason. If we could purchase a car/computer as an expense, then we could make that decision now and not worry about paying for it for years to come.

I can imagine manufacturing plants wanting to buy more equipment since they would have better depreciation rules under the FairTax.