If we want to cut taxes how about this radical solution, since the current President came in on the mantra of change:
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 ...
Here it comes … higher taxes on middle class
http://blogs.reuters.com/james-pethokoukis/2010/09/07/here-it-comes-higher-taxes-on-middle-class/
Again, Orszag accepts that Americans are undertaxed, which is left-center dogma.
Of course, the real problem is not that tax revenues will be dramatically lower long term, it is that spending will be dramatically higher.
Let's see if it happens.......
Too little, too late, even if he does go through with it.
“The problem is these “tax cuts” are only through 2011 which will only spur minimal capital investment for Q4/2010 through Q3/2011.”
well, you know, there are a lot of people even here who like the idea of a tax holiday. They don’t understand Friedman’s permanent income hypothesis
likely Dems let them go through but not for the 'evil rich' making $250k or more...many who probably file taxes as individuals AND own a small business, effectively negating the benefits this would have made...
Yes, but it's not going to completely offset the reduction in the tax unless the corporation operates in a perfectly competitive product market, which most corporations don't.
In reality, corporations generally enjoy some competitive advantage/barries to entry in their products of specialization, in which case they will not be forced to pass on all the savings from a corporate tax reduction to their customers, and their shareholders will emjoy a windfall. The size of this windfall will depend on the elasticity of demand and the degree of competitive advantage the corporation enjoys.
Hey, I wonder if he’ll be all for this stuff AFTER the election.
Invest in what? The problem is a lack of customers with money to spend. So now businesses can double down on a losing bet.
The O-pression will continue.
Actually, it probably pass with other bs with the Dead Duck Congress with many/many rats not coming back in January.
If we want to cut taxes how about this radical solution, since the current President came in on the mantra of change:
listenhillary, try running a Commercial Mechanical Contracting business for one year in this economy. I deal with TARP funds, VA, Disability Act legislation, private funding, Davis Bacon Act, you name it!
You don’t know what you’re talking about. Eco 101 doesn’t apply. Politics, locally, State and otherwise does. You’d sink in a heartbeat!
This thread is dead to me.
Have either of you ever run a business?
My rational, informed, intelligent comments were not intended for "those folks."
A side business, yes. Nothing big enough to involve having employees or anythign like that, and certainly not a means of supporting myself, but a business that generated a little bit of extra spending money.
The bottom line point that another poster was trying to make, and that I tried to further explain, is that corporate taxes are ultimately paid by consumers through the prices they pay for goods (or to some extent by shareholders through the income that they forego because the government has taken that portion of the earnings that could be distributed as dividends or reinvested in the business). While the corporation files a return and writes a check for the taxes, ultimately the consumers pay those taxes.
Correct but ultimately the government gets its share of my Profits. When I raise prices to cover this consumers go elsewhere. Evil Profits are controlled by taxes. Employment is controlled by expense and taxes. No Profits, less employees. More expenses per employee, less employees. Less employees less money to the Treasury.
Why can’t they figure this out?
Bingo! This “offer” is for obambi’s corporatist pals. Net result if enacted- some cash laden cos. will get new equipment and fast write it off. Then they will still be looking for someone to buy their stuff. it is all a joke. permanent across the board tax roll backs and rate cuts. You cannot fund socialism when there is no capitalism and no economy left.
B2B is only ONE kind of economy. It does not employ anywhere near the number of people that are needed to be employed. The 70% of employed that work for small business are left out of this equation, or are unmeasurable in the effect of this “tax break” for corporatist pals of obambi. keep in mind big pharma that got a free pass from obamacare.
My heart goes out to you. Most commenting here have no idea how many tentacles reach into the most modest of small businesses. And they want to reach further. Imagine (you won’t have to) a firm with 20 employees and they have “card check” and join the union.
Almost all of the new jobs in this country come from small business. While large corporations create jobs, they also eliminate them with zero net effect. Small business has it tough. The big corporations don’t like them and neither do the big politicians.
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