“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. “
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.
Sorry Obie, but GAAP ain't just that space between your ears.
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.
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.
“Companies do not need new plants and equipment.”
Actually...I think this country would do well with a few more manufacturing plants.
“...a plan that White House economists say would cut business taxes by nearly $200 billion over two years.”
Two years.......yeah, that’ll do it.
How long did it take for us to get into this mess?
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.
Therin is the rub, these companies need paying customers, which is in short supply these days.
A tax credit for investing in the businesess assumes that you have spare capital available to invest.
If you’re running to just make payroll and not get swallowed up by debt, this is meaningless.
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.