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Obama to Propose Tax Write-Off for Business
NY Times ^ | 9/7/10 | Jackie Calmes

Posted on 09/07/2010 10:31:47 AM PDT by Nachum

WASHINGTON — As part of his emerging program to jolt the economic recovery from its stall, President Obama will call this week for allowing businesses to deduct from their taxes through 2011 the full value of new equipment purchase, from computers to utility generators, to increase demand for goods and create jobs.

The upfront deduction would allow businesses of all sizes to keep more money now and would give large corporations, many of which are sitting on cash because of uncertainty about the economy, an incentive to spend and invest.

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: obama; propose; tax; writeoff
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To: Nachum

I like this idea since I’m self-employed.


21 posted on 09/07/2010 10:51:14 AM PDT by Lou Budvis (Refudiate 0bama '12)
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To: Nachum

Rush has mentioned this before and I think it bears repeating:

Why do the Dems always give tax cuts/breaks/credits when they want new businesses in their areas? They’re always so anti-tax, until they want growth, then they love to give tax breaks! Anyone see the irony here? Why aren’t they called out on it?


22 posted on 09/07/2010 10:52:31 AM PDT by Kharis13 (That noise you hear is our Founding Fathers spinning in their graves.)
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To: Marty62

Indeed - and “propose before the elections” is far different from “pass and sign after the elections”

I’d rather have a new Congress that would do better, smarter things, Barry...


23 posted on 09/07/2010 10:52:54 AM PDT by Noamie
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To: Nachum
A write off for capital equipment you don't need (no customers with money) and can't purchase (no lines of credit available). A big company like PacBell used equipment depreciation as a way to move revenues from the tax column back into an account to purchase new capital assets. It takes a big capital base to leverage that technique. The typical small business derives little advantage.

Extend the Bush tax cuts. Reduce tax rates further. Repeal Obamacare. That would pull the uncertainty off the horizon. As long as higher taxes and Obamacare are on the way, consumers will hold on to their money and businesses will have to reason to hire. People worried about just maintaining a job aren't going to commit to large purchases.

24 posted on 09/07/2010 10:54:29 AM PDT by Myrddin
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To: Nachum

Just for a year so the numbers look better, then comes the income tax and oil tax and all the other taxes. No thanks, Bark Obama.


25 posted on 09/07/2010 10:55:43 AM PDT by Nonstatist
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To: Non-Sequitur
If the GOP leadership was smart it would produce it OWN alternative bill and say “we agree with the President tax cuts are desperately needed to spur on the economy, however his bill doesn't do nearly enough, here is what we would do”.

The GOP loses when it lets the Dems set the debate in terms of with or against. Instead they should copy what Gingrich and the GOP did running up to the 1994 elections. Gingrich et al made sure every Democrat bill was mirrored by a GOP alternative. That forced the debate to be on WHICH set of ideas was better.

26 posted on 09/07/2010 10:56:51 AM PDT by MNJohnnie (The problem with Socialism is sooner or later you run out of other people's money. Lady Thatcher)
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To: Nachum

So they write off 100% this year. What happens next year when they have no deductions at all?


27 posted on 09/07/2010 10:57:51 AM PDT by Terry Mross (o)
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To: Nachum

The stuff business will buy from China?


28 posted on 09/07/2010 11:13:45 AM PDT by ex-snook ("Above all things, truth beareth away the victory")
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To: justlurking
Very good post. If they really want to create a true tax cut related to equipment purchases, they should permit businesses to write off more than 100% of the value of the equipment.

What's being proposed here, as you've pointed out, isn't really a "tax cut" at all.

29 posted on 09/07/2010 11:26:08 AM PDT by Alberta's Child ("Let the Eastern bastards freeze in the dark.")
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To: Nachum

not a bad concept, but he is talking about a short duration “quick hit” of capital spending. Will only shift future purchases ahead in the calendar and leave us twice as slow down the road, just like Cash for Clunkers and the homebuyer credit.


30 posted on 09/07/2010 11:35:36 AM PDT by Buckeye McFrog
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To: Nachum
At the same time he is proposing a $50 billion "infrastructure" infusion and "help" for underwater mortgages.

This mixed-bag effort is garbage.

31 posted on 09/07/2010 11:38:47 AM PDT by Siena Dreaming
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