Depreciation as Perpetual Fuel

“Once TCI had finished writing down the value of its assets to shelter cash flow from taxes, it would have to begin payingincome taxes and keep on paying interest, and there would be nothing left to fund growth. It needed to keep expanding, no matter what, buying up new cable companies to start the write-off process anew and build cash flow.”

“Tax-sheltered cash flow could be leveraged to land more loans to create more tax-sheltered cash flow.”