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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; All; Kickass Conservative

Predict unemployment over 10% with this new proposal;

>”February 17, 2009, American Recovery and Reinvestment Act = 111th United States Congress”<
1. Trillion Dollar waste (Stimulus), borrowed Chinese money.
2. 10% Unemployment Rate, 17% Underemployment Rate.
3. $1.5 Trillion Deficits as far as the eye can see.
4. 1.5% GDP, (aka: Apathy in Obamaville).
5. Federal Tax Revenues tumble.

>”May 28, 2003, Jobs and Growth Tax Relief Reconciliation Act of 2003 = 108th United States Congress”<

1. 52 months of Job Creation, a record.
2. 5% Unemployment Rate.
3. $300 Billion Dollar Deficit while fighting two Wars and giving Seniors a Medicare Drug Benefit.
4. 4.5% GDP.
5. Federal Tax Revenues soar 35% from 2003 to 2008.


81 posted on 09/07/2010 3:23:23 AM PDT by Son House (Like Getting Liposuction, and Coming Out Fatter. Time to Convict Democrats of Economic Malpractice.)
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To: hsrazorback1

Wonder what’s going to happen to the Bush tax cuts?

This ‘new’ plan is a head fake. Bye bye to tax cuts.


82 posted on 09/07/2010 4:05:38 AM PDT by madameguinot (Our Father's God to Thee, Author of Liberty)
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To: Blood of Tyrants

Been there ...done that
http://online.wsj.com/public/resources/documents/STIMULUS_FINAL_0217.html
“Getting to $787 Billion”


83 posted on 09/07/2010 4:07:22 AM PDT by blueyon (The U. S. Constitution - read it and weep)
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To: Blood of Tyrants

Few of Obama’s strategies actually end up benefitting corporations, small businesses and the working class. This sounds like one of those “few things”. Only problem is, his successful strategies are always “long-time Republican strategies” disguised as new ideas by Obama’s clueless advisors.


84 posted on 09/07/2010 5:52:18 AM PDT by REPANDPROUDOFIT (General, sir, it's ok to call me "ma'am"!)
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To: Blood of Tyrants

This sounds like the 21st century version of the NEP (Lenin’s New Economic Program, which was designed to calm property owners down for a long enough period of time to allow Communism to consolidate.)


85 posted on 09/07/2010 5:54:24 AM PDT by Dr. Sivana (There is no salvation in politics)
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To: Blood of Tyrants

Republicans need to hold his feet to the fire on this. Make him and the rats account for every penny of the first stimulus before handing over any more of our hard earned money.


86 posted on 09/07/2010 5:57:00 AM PDT by jersey117
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To: madameguinot
Wonder what’s going to happen to the Bush tax cuts?

If he's serious about moving the economy his will keep ALL of the Bush tax cuts. Republicans should accept nothing less.

87 posted on 09/07/2010 5:58:38 AM PDT by jersey117
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To: Blood of Tyrants

New equipment = more automation, fewer jobs


88 posted on 09/07/2010 6:00:24 AM PDT by winodog
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To: Blood of Tyrants
He is twisted up like a pretzel trying to avoid extending the Bush tax cuts. It would totally gaul him to offer assistance directly to the working class/taxpayers. Doing that WOULD NOT:

transfer wealth to the "less fortunate"

funnel money to the unions' failing pension funds

establish rebuilding projects that create union pay-scale jobs

require a new "bureaucracy" in Washington with 100,000 new government workers to administer it

create a new community organizing effort that will employ thousands of ACORN and SEIU workers

89 posted on 09/07/2010 6:07:08 AM PDT by REPANDPROUDOFIT (General, sir, it's ok to call me "ma'am"!)
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To: Repealthe17thAmendment

“Aren’t capital investments already fully tax deductible?”
////////////////////////////////////////////////////////////

Equipment that lasts for many years is normally capitalized meaning the deduction is spread over many years, Odumbo proposes to allow the whole thing to be deducted the first year. This is treating capital equipment the same as perishable tooling which is normally written off one hundred percent in one year. It is the difference between a drill press and a drill bit. His Brilliance proposes to treat both the same. This may result in some slight increase in capital equipment purchases next year but it will mean a decrease in purchases in following years.

They may have some notion that this will make the formation of new businesses more likely but I doubt it. Contrary opinions are welcome, I am just speculating, I am not an MBA or an accountant.


90 posted on 09/07/2010 6:10:58 AM PDT by RipSawyer (Trying to reason with a leftist is like trying to catch sunshine in a fish net at midnight.)
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To: Blood of Tyrants

He is throwing a bone to Republicans hoping to get 50 Billion for unions. I this an admission thay he lied when he said the first “stimulus” was investment in shovel ready projects?

Btw, these are not tax cuts as businesses do not pay taxes on plant and equipment expenditures they depreciate then. These allows the businesses to write the entirety off in the first year. Doesn’t do any good when businesses do not have the confidence to make major purchases.

Obama is up tp his usual BS.


91 posted on 09/07/2010 6:29:16 AM PDT by KansasGirl (No, I do not proofread.)
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To: eclecticEel; sickoflibs; stephenjohnbanker; DoughtyOne
An then the small print tells you that he’s at the same time proposing raising business taxes in other areas - for amounts that won’t be specified until some later date.

WSJ: Jay Timmons, executive vice president of the National Association of Manufacturers, described the expensing proposal as "good at face value." But he questioned the administration's logic in proposing to raise some business taxes in order to lower others.

Raise general tax rates permanently, while granting some temporary tax breaks, which will come with more pork and Pelosi tricks. "Beware of Dems bearing gifts!"

92 posted on 09/07/2010 6:35:24 AM PDT by ding_dong_daddy_from_dumas (Lt. Col. Ralph Peters: Obama is the dog who caught the fire truck!)
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To: gov_bean_ counter

[GAAP ain’t just that space between your ears.]

GAAP doesn’t effect tax write-offs, the tax code does. That is why you have M-1 adjustments on your tax return, it is the reconciliation of tax and book (GAAP) differences.


93 posted on 09/07/2010 6:36:00 AM PDT by KansasGirl (No, I do not proofread.)
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To: Blood of Tyrants
Look for the Union Label


94 posted on 09/07/2010 6:36:14 AM PDT by GailA (obamacare paid for by cuts & taxes on most vulnerable Veterans, retired Military, disabled & Seniors)
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To: tacticalogic

[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.]

Notice how this extends through 2011. Just long enough for Barry to get to tout recovery through the end of 2011 and through re-election. Then the economy falls off a cliff again.


95 posted on 09/07/2010 6:42:06 AM PDT by KansasGirl (No, I do not proofread.)
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To: Blood of Tyrants

Cutting payroll taxes for SMALL to Medium sized businesses would be a start......

Reforming the tax code—flat or fair...would be even better...

Scrapping ObamaCare and the silly cap-n-trade scheme that scares the HELL out businesses would be great.

Obama doing any of these would probably happen about the same time Helen Thomas wins Hooter girl of the year..


96 posted on 09/07/2010 6:50:13 AM PDT by Le Chien Rouge
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To: HereInTheHeartland
Ok, so if it's a good idea to cut taxes for a short time period; why not longer and deeper tax cuts?

Because Obama wants to jack up the economy before the 2012 election. After 2012 he doesn't care what happens to the economy.
97 posted on 09/07/2010 6:52:22 AM PDT by Ticonderoga34 (Free Obama's Birth Certificate!)
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To: KansasGirl

Sorry, I apologize for all the typos. I was one hand typing and feeding the baby with the other. :-)


98 posted on 09/07/2010 6:52:45 AM PDT by KansasGirl (No, I do not proofread.)
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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

Companies can already write off 100% of their investment in plant and equipment. It is a business expense that offsets profit. Duh.

99 posted on 09/07/2010 6:55:59 AM PDT by Hoodat (.For the weapons of our warfare are mighty in God for pulling down strongholds.)
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To: REPANDPROUDOFIT

As others have pointed out, the devil is in the details. The tax credits will probably cause businesses to buy capital items in 2011 that they were planning on purchasing in 2012, 2013, 2014, etc. creating another “cash for clunkers” where all it does is accelerate the buying in the short term. After the tax credits expire, the demand for capital goods drops off a cliff.

Also, there is little doubt that the 100% credit will ONLY apply to “green projects”. It will also depend on if a company thinks that the capital projects will have a customer to buy the goods.

But what I really think is that this is a tax credit for Government Motors and Chrysler to benefit the unions.


100 posted on 09/07/2010 6:57:09 AM PDT by Blood of Tyrants (Islam is the religion of Satan and Mohammed was his minion.)
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