Kudlow Says U.S. Should Allow Firms ‘100% Immediate Expensing’

President Donald Trump’s top economic adviser said the U.S. should allow companies to deduct the entire cost of capital spending, including relocating from China, as the administration looks for ways to jump-start an economy hobbled by the coronavirus pandemic.

“Plant, equipment, intellectual property, structures, renovations -- in other words, if we had 100% immediate expensing, we should literally pay the moving costs of American companies from China back to the U.S.,” Larry Kudlow said in an interview on Fox Business Network on Thursday.

Larry Kudlow outside the White House on April 9.

Photographer: Oliver Contreras/SIPA/Bloomberg

Kudlow’s proposal came in response to a question about how the U.S. can ween itself ...