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Obama to Propose Massive Tax Breaks for Businesses to Invest in Growth
Foxnews.com ^ | 9/6/2010 | Unknown

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 ...


TOPICS: Breaking News; Business/Economy; Government; News/Current Events; Politics/Elections
KEYWORDS: business; economy; misleadingtitle; obama; obamalies; taxes
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To: Blood of Tyrants

this is the reason we are in a Social Depression. The obmanation strikes again... against America.


21 posted on 09/06/2010 7:50:19 PM PDT by bareford101 (Be loud! We have nothing – NOTHING - to apologize for in fighting for our Country!!)
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To: EQAndyBuzz

Yep. The problem is NOT lack of manufacturing capacity or even efficiency. The problem is that the companies don’t have CUSTOMERS to buy their products.


22 posted on 09/06/2010 7:50:35 PM PDT by Blood of Tyrants (Islam is the religion of Satan and Mohammed was his minion.)
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To: Blood of Tyrants

Note that this does nothing to help small businesses, the creators of 70% of all new jobs.

This is like the tax break for hiring new employees: several thousand dollars worth of tax write-offs in return for $50K in salary, Workman’s Comp and health insurance expenses to the business.

Dumbass.


23 posted on 09/06/2010 7:52:09 PM PDT by snowrip (Liberal? You are a socialist idiot with no rational argument.)
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To: Mariner

If you are struggling to survive, you aren’t going to put out more money for capital projects just because it is deductible.


24 posted on 09/06/2010 7:53:11 PM PDT by Blood of Tyrants (Islam is the religion of Satan and Mohammed was his minion.)
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To: Blood of Tyrants
Let me guess, in the fine print, these tax breaks are only for the business that are unionized in the democrat blue states.

Remember the Saturn plant in Springhill Tennessee. He punished Tenn and the south for voting Republican, by shutting that plant down and giving the jobs to Michigan. There going to be some bitter years in the south over it.

Another guess is the tax breaks will be for Green Jobs, either way I'm sure it is stealing money for the tax payer to give to their businesses of choice.

25 posted on 09/06/2010 7:54:10 PM PDT by ReformedBeckite
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To: 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.

PROOF THAT KEYNESIAN ECONOMICS IS AN ABYSMAL FAILURE. The problem is these "tax cuts" are only through 2011 which will only spur minimal capital investment for Q4/2010 through Q3/2011. After that we're right back where we are today and will remain here until sustained tax relief that spurs long term growth is passed.

As we all know, that won't happen until after the 2012 Presidential Elections and the end of Obummer's first and only term in office.

26 posted on 09/06/2010 7:56:05 PM PDT by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: Blood of Tyrants

For a 2 year reprieve on what I can spend up-front before end of 2011, I then have much higher taxes far into the future in health care, obama denial of bush tax cuts, cap n tax, vat tax, and other democratic increases.

No thanks.


27 posted on 09/06/2010 7:56:53 PM PDT by xzins (Retired Army Chaplain and proud of it. Those who truly support our troops pray for their victory!)
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To: snowrip

So the GOP should jump on it and pass it saying that they are for tax cuts whenever they can get them but that this won’t work for all the reasons listed above.


28 posted on 09/06/2010 7:57:41 PM PDT by Blood of Tyrants (Islam is the religion of Satan and Mohammed was his minion.)
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To: Blood of Tyrants

“CORPORATIONS DON’T PAY TAXES! “

Start a corporation for 10 years oh wise one and tell me if Corporations don’t pay taxes1 Moron!

Why then aren’t they hiring?

Corporation S Owner!


29 posted on 09/06/2010 7:59:22 PM PDT by poobear ("The greatest tyrannies are always perpetrated in the name of the noblest causes." -- Thomas Paine)
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To: Blood of Tyrants

smoke and mirrors....
he wants to KILL capitalism.

I have a sister that “toasted to the end of capitalism” a couple years ago with champagne.

She then sent $$$$ to the Obama campaign and voted for the sleezey, lazy, gay usurper.

And YES....she’s a Harvard graduate and works as a “teacher”. (but, I bet you KNEW that.....)


30 posted on 09/06/2010 8:01:55 PM PDT by Mortrey (Impeach President Soros)
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To: muawiyah
When the fundamental problem is excess capacity, buying more of it doesn't solve the problem.

Why would anyone create more capacity in a market with excess capacity, even with incentives? Of course, not every market has excess capacity. Would you have been against expanding smartphone capacity a few years ago?

31 posted on 09/06/2010 8:01:55 PM PDT by Moonman62 (Politicians exist to break windows so they may spend other people's money to fix them.)
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Comment #32 Removed by Moderator

To: Blood of Tyrants
Sounds like another "cash for clunkers" deal. A short-term bump that'll be spun as "signs of the recovery", followed by the same kind of slump we're seeing in auto sales.

I can see this blowing up in his face when companies that are labor-intensive use it to build new automated production lines, and then close the old plants and cut their work force, resulting in higher unemployment.

33 posted on 09/06/2010 8:04:41 PM PDT by tacticalogic
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To: tacticalogic

Only if the plants have the cash on hand to spend.


34 posted on 09/06/2010 8:05:57 PM PDT by Blood of Tyrants (Islam is the religion of Satan and Mohammed was his minion.)
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To: Blood of Tyrants

Sounds like he is looking for flashy headlines that will hopefully limit the damage he’s facing in November.


35 posted on 09/06/2010 8:06:31 PM PDT by Ronin (If it were not so gruesomely malevolent, Islam would just be silly.)
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To: EQAndyBuzz
Companies do not need new plants and equipment. They need customers who are now unemployed because of hair-brained schemes that cost 700 billion dollars.

Companies that have new ideas or new technologies that buy plants and equipment create new jobs, and the people who get those jobs will become new customers.

36 posted on 09/06/2010 8:06:37 PM PDT by Moonman62 (Politicians exist to break windows so they may spend other people's money to fix them.)
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To: Eddie01

“Where we’re you 20 months ago?”

Exactly my thoughts. Obama waits until the November elections are near then all of a sudden proposes these job bills and tax breaks. This is so obvious even a blind man can see it. Where was he a year ago or like you said 20 months ago? Just pathetic election engineering.


37 posted on 09/06/2010 8:06:44 PM PDT by Parley Baer
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To: Blood of Tyrants
Only if the plants have the cash on hand to spend.

And some confidence there will be a market left to produce for.

38 posted on 09/06/2010 8:07:19 PM PDT by tacticalogic
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To: Moonman62
Hmm, smart phone capacity ~ ? Are you going to build some of that here?

Ask a relevant question.

39 posted on 09/06/2010 8:08:34 PM PDT by muawiyah
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To: Blood of Tyrants
(I posted this on another thread, but the questions remains.)

Correct me if I'm wrong, but immediate expensing of capital equipment just means that tax reduction through depreciation of the equipment is moved up to the current year. So if you spend $5,000,000 on a machine with a 5 year depreciation schedule you could deduct $1,000,000 per year as a business expense. If you were going to buy the machine anyways, that means with the immediate deduction you have $4,000,000 lower net income this year, but $1,000,000 more than you would have for each of the next four years. Net change = $0. Money now is better than money later, but it's still just shuffling when the deduction happens.

How is this different from Cash for Clunkers and the housing tax credit since it would just shifting future purchases to the present and reducing future purchases?

40 posted on 09/06/2010 8:09:45 PM PDT by KarlInOhio (Gun control was originally to protect Klansmen from their victims. The basic reason hasn't changed.)
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