Posted on 09/07/2010 7:47:01 AM PDT by GLH3IL
President Barack Obama will call on Congress to pass new tax breaks that would allow businesses to write off 100 percent of their new capital investments through 2011, the latest in a series of proposals the White House is rolling out in hopes of showing action on the economy ahead of the November elections.
An administration official said the tax breaks would save businesses $200 billion over two years, allowing companies to have more cash on hand. The president will outline the proposal during a speech on the economy in Cleveland Wednesday.
Amid an uptick in unemployment to 9.6 percent, and polls showing that the November election could be dismal for Democrats, Obama has promised to propose new steps to stimulate the economy. In addition to the business investment tax breaks, he will also call for a $50 billion infrastructure investment and a permanent expansion of research and development tax credits for companies.
(Excerpt) Read more at news.yahoo.com ...
Desperate attempt? Smells like it.
Beware.
I’m okay with tax breaks, but nothing makes businesses tigten up more than chaos and unpredictability. A handful will try to profit from it, the rest will wait for the dust to settle. With this administration the dust never settles. It is like they are driving in a twisty dark tunnel with the headlights off. You can go forward, but very slowly, with lots of damage along the way.
Like fish flopping on deck. Pathetic.
If I understand this. bambi is providing 200 billion in tax breaks for things that he wants to promote by eliminating 200 billion in tax break for things that he doesn’t like.
“Tax breaks” only go so far! The BEST way to grow the economy is TAX CUTS! These allow everyone to have more buying power: the basic consumers, the business owners, the investors, EVERYONE!
But, tax cuts do not allow the government to control the money and continue to COLLECT the money from every possible angle!
TAX CUTS are the only things that will make a significant, immediate impact! The Dems need this to avoid a complete thwacking, but they will NOT do this and risk admitting that their plans DO NOT WORK!
Focusing like a laser beam...
Too little, too late.
Here we go again. Don’t think “stimulus”, think “Cash for Clunkers” and the $8000 home buyer credit. Both of those “good deals” did little more than bring future sales into the present, the result being a massive drop in both home sales and used cars after the programs expired.
Part of this bright idea is to allow businesses to take all of the depreciation for new equipment and facilities all at once, as opposed to spreading it out over several years as the standard IRS depreciation schedules have provided for decades. By taking all of your depreciation in one year it will spike your deductions this year, and leave you without a significant depreciation deduction for several years. The net result will be higher taxes on business in follow-on years for any business foolish enough to bite on this one.
More smoke and mirrors from the least qualified guy in the room.
How is the world will lowering taxes on people help?
/sarc
Indeed. The plan is to loudly tout giving these tax breaks, while strictly avoiding mentioning the new business taxes imposed to offset the government's "loss of income" due to these cuts.
The end game?
The new "tax breaks" either never quite get put in place or quickly expire, the offsetting new taxes take instant effect, and never go away, barring a full-up revolt.
Cash for clunkers also got the cheap cars off the road, preventing poor people from getting affordable cars, and forcing them onto government controlled mass transit.
You can only go where we want you to, when we want you to, Citizen.
What's not to love?
Here in Michigan, Jenny Granholm has given big tax breaks to select industries too. Unfortunately movie making and green tech don’t create many full time jobs. She also gave a $2 million tax break to the SEIU.
Band-Aid economics .... “Cash for Clunkers,” “$8,000 First Time Homebuyer Credits,” etc.
Funny — the phone call to my small business hasn’t rung yet...
Exactly right n&v...cash for clunkers has decimated the used car trade and it is almost impossible to find a cheap car to get you to work and back.
The Law of Unintended Consequences at work.
It’s obvious that the Democrat Party is in the pocket of Big Business and a tool of the oil companies.
Why do you assume it's unintended?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.