What is the marginal impact on taxes for a profitable corporation in the 35 percent marginal tax bracket that incurs an additional dollar of depreciation expense?

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When a corporation incurs an additional dollar of depreciation expense, they are allowed to deduct it from their taxable income. This reduces the amount of income that is subject to taxation, which in turn reduces the amount of tax owed. For a corporation in the 35 percent marginal tax bracket, the marginal impact on taxes would be a decrease of 35 cents. This is because the corporation would save 35 cents on their tax bill for every dollar of depreciation expense they incur.

What Is the Marginal Impact on Taxes for a Profitable