Economics is scientific in nature. It is just hard to model and predict the behavior of humans. That doesn't mean that economics can't tell us anything conclusive.
Even though capital expenditures are tax deductible, the returns from capital expenditure are being taxed at a higher rate. This makes consumption relatively more attractive to shareholders which is bad for economic growth. It's not about the money available to invest, it's about the incentives to invest that money.
Even though capital expenditures are tax deductible, the returns from capital expenditure are being taxed at a higher rate. This makes consumption relatively more attractive to shareholders which is bad for economic growth. It's not about the money available to invest, it's about the incentives to invest that money.