This article proposes an elective tax benefit transfer system to be available to lessors of property who use that property in their trade or business. It describes why the current linkage of tax benefits to property ownership is economically inefficient, causing it to have several significant disadvantages to the parties and to the economy, as a whole. The article discusses how the current system reduces a firm's cash flow and reported earnings, diminishes the intended effect of tax incentive legislation, distorts competition and decision making, and inhibits investment in efficient business assets. It is submitted that the proposed system corrects all of the shortcomings, while not violating any tenet of taxation and being consistent with Congressional attempts to limit tax avoidance.
Blasi, Ronald W.
"A Proposal for an Elective Benefits Transfer System,"
Florida Tax Review: Vol. 10, Article 4.
Available at: https://scholarship.law.ufl.edu/ftr/vol10/iss1/4