Posted on 09/06/2010 7:27:32 PM PDT by Blood of Tyrants
President Obama, in one of his most dramatic gestures to business, will propose that companies be allowed to write off 100 percent of their new investment in plant and equipment through 2011, a plan that White House economists say would cut business taxes by nearly $200 billion over two years.
The proposal, to be laid out Wednesday in a speech in Cleveland, tops a raft of announcements, from a proposed expansion of the research and experimentation tax credit to $50 billion in additional spending on roads, railways and runways. But unlike those two ideas, both familiar from Obama's 2008 campaign, the investment incentive would embrace a long-held wish by conservative economists that had never won support from either Republican or Democratic administrations.
(Excerpt) Read more at foxnews.com ...
Why doesn’t he offer 5k per vote and just get it overwith ...
I think that this is different as it will give a 100% tax credit for capital projects. I may be wrong. Current deductions only reduce your tax by 36% of the capital cost (or whatever tax rate you are in).
Shell game.
“Companies be allowed to write off 100 percent of their new investment in plant and equipment through 2011”
This may be a good idea IF the result is NOT a net loss of blue collar jobs. Upgrades by established companies to increase efficiency and to reduce labor combined with upstart companies growth MAY offset each other as far as increasing total employment is concerned but I am skeptical.
Did anyone notice there is no write off for the hiring of new employees in this proposed bill?
If anybody believes this liar,they deserve him.Just another tale to appease people until after the election.Then he will go back on his word like all his promises.
Otherwise, this initiative will plunge the US into an additional $200,000,000,000 of debt.
Hussein is trying to kill the United States from both sides (uncontrolled spending, and revenue cuts).
Interesting. I was thinking of a tax writeoff as a tax deduction, in this case removing the limit for Section 179 expense through the end of 2011, not tax credit. Typical of Obama, short on details. Guess we’ll have to pass the bill to find out what’s in it!
He lies.
The idiot actually said yesterday that this will be paid for by eliminating a TAX LOOPHOLE the republicans created for the wealthy.
The king of propaganda is shameless.
He blames republicans for all and fails to address that he as a President has done nothing but vacation and pass radical ideals that hurt America.
To The Dear Leader (hoping it will grow inside his thick head):
There are THREE ‘F’’s to remember about taxes :
* FIX IT (make it SMALL and COMPETITIVE)
* FLATTEN IT (make it SIMPLE)
* FORGET IT (make it PERMANENT)
Any TEMPORARY tax rebates, credits, cuts, or targetting is only going to confound businesses further because they CANNOT PLAN AHEAD. You only create UNCERTAINTY.
Also, targetting taxes to favored businesses will only cause CRONYISM, CORRUPTION, PORK BARREL SPENDING and all sorts of problems your stimulus actually caused.
If it smells bad, it probably is. In this case it is worse then bad smelling fish. I will not buy it!
The point of the complexity of the tax code is to give POWER to those who can exempt or increase the taxes on preferred groups or opponents.
The main reason for the complexity of all bills that go through Congress these days is that the language includes how to treat people UNEQUALLY under the law.
As the American people now understand...if BS were music zero would be a one man band!
That should have been done two years ago, and it should be permanent.
Too little, too late. Simply a desperation measure to save his merry band of Trojan Marxists in Congress. An obvious vote-buying scheme at this point. If Obummer was serious about economic stimulus, he’d announce that he wanted the Bush tax cuts made permanent.
And besides: “the government would only lose $30 billion, because deductions that businesses would have taken in future years under current rules would disappear.” How’s that going to help? Simply robbing Peter to pay Paul.
In fact, Obama added, “Essentially, we’re going to rob Peter to pay Paul. That way my proposal will be deficit neutral. Furthermore, while everyone knows that robbing Peter to pay Paul accomplishes almost nothing, at least we’re giving the appearance of doing something useful, making a change that we hope will increase business confidence. At least for now, it sure beats re-arranging the deck chairs, which is the only other option I was presented with by my council of economic experts. Hey everybody, I’m starving; let’s go buy some shrimp now! I’m buying the first round!”
“Companies can already write off 100% of their investment in plant and equipment. It is a business expense that offsets profit.”
No, they can’t. At least not during the first year purchased. The IRS forces businesses to write off capital investment over many years, a small amount each year. One exception is Section 179 depreciation, which allows very small business to write off a very small amount of investment during the first year.
BINGO!
If the Feds truly wanted to jumpstart the economy they'd let us forgo 1/2 of our payroll tax witholding immediately. That money would instantly jump back into the economy as taxpayers would start buying stuff with it.
Businesses would once again thrive and start expanding inventory and hiring more employees.
Your suggestion is identical to the Steve Forbes flat tax proposal from 1996. We should have fixed our income tax system like 30 years ago and by now our economy would be booming because it would be financially viable to do business in the USA due to low business taxation.
In the first year, you can expense $250,000 plus 50% of the investment. The remaining 50% is depreciated over the next few years depending on which schedule you use. My point was that capital expenses are still 100% deductible, if not wholly within the first year.
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