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Title: Obama to Announce $38 Billion Business Tax Break
Source:
Bloomberg News
URL Source: http://www.bloomberg.com
Published: Jan 27, 2010
Author: Ryan J. Donmoyer and Roger Runningen
Post Date: 2010-01-27 10:39:25 by war
Keywords: None
Views: 4434
Comments: 22
Jan. 27 (Bloomberg) -- President Barack Obama will propose extending through 2010 a temporary tax incentive that encourages businesses to accelerate purchases of equipment, an administration official said. The president will call for renewal of the 50 percent “bonus depreciation” in his State of the Union address tonight, said the official, who spoke on condition of anonymity. Extending the break, which expired Dec. 31, would save companies that make qualified purchases of equipment such as tractors, wind turbines, solar panels and computers a total of $38 billion over this year and next, the official said. Bonus depreciation was a tax element of the $787 billion economic recovery legislation adopted last February. It also has been a feature of earlier economic stimulus measures, including one adopted in 2003 under President George W. Bush. While companies will realize tax savings in the year they purchase qualified equipment, they’ll pay higher taxes in subsequent years when the property is fully depreciated. ~~~~ This is showing up in the computer industry for sure...chips sales are up...
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#1. To: war (#0)
this is on top of the $79 billion in small-business tax breaks that were part of the stimulus.
The problem is small business doesn't have the cash on hand to make the purchases to receive the tax breaks.
Lets see how Obama blames Bush tonight....
C'mon there were no tax breaks in the stim...just ask Felat-o-rator...
For what, exactly?
Lets see how Obama blames Bush tonight....
True, we've seen our lines of credit dry up in the last year, with no thawing as of yet.
It was $76 billion, not $79 billion, sorry. Business Tax Incentives to Create Jobs and Spur Investment ($76 billion in 2 years; $10 billion over 10 years) * Bonus Depreciation: Helps businesses quickly recover costs of new capital investments by extending the increased bonus depreciation for businesses making investments in new plants and equipment in 2009. * Buying Back Debt: Provides assistance to companies looking to reduce their debt burdens by delaying the tax on businesses that have discharged indebtedness, which will help these companies strengthen their balance sheets and obtain resources to invest in job creation. * Small Business Expensing: Spurs small business investment by extending increased small business expensing, which doubles the amount small businesses can immediately write off for capital investments and purchases of new equipment made in 2009 from $125,000 to $250,000. This write off phases out completely for investments over $800,000 (up from $500,000). * Small Business Loss Carrybacks: Increases cash flow for small businesses by providing a 5-year carryback of net operating losses (NOLs). This would allow small businesses (with gross receipts of less than $15 million) to write off losses incurred in 2008 against taxes assessed over the previous five years (current law limits NOL carryback to the previous two years). * Small Business Investment: Spurs investments in small businesses by cutting the capital gain tax (by increasing from 50 percent to 75 percent the capital gains that are excluded from tax) for investors in small businesses who buy stock (in the next two years) and hold it for more than five years. * 3% Government Withholding: Delays the mandate that federal, state, and local governments withhold 3 percent of payments to businesses for goods and services, which is supported by the National Small Business Association. * Jobs for Unemployment Veterans or Youth: Encourages new job creation with business tax credits for hiring recently discharged unemployed veterans and youth that have been out of work and out of school for the 6 months prior to hire.
The reason this didn't work is contained inside. SB's are cash starved. Demanding they lay out cash on capital improvements to then receive a tax break, when they are cash strapped...well, how'd that work out? Thanks for the info, GO65.
Lets see how Obama blames Bush tonight....
When Clinton passed his first budget deal we had a small operation making children's hats. In that package was an accelerated depreciation schedule that allowed us to swap out of the used machines we were using into brand new ones. It made a huge difference in productivity, allowed us to get into a couple of catalogs and 3 years later we sold the biz for a good snick of cash...[which was then run into the ground by a moron who didn't understand that he had bought a good business model...]
Just what every idle factory needs, shiny new equipment to make stuff they can't sell. Makes sense to me.
Exactly. If Obama wants to get the economy rolling again, the only way is via tax breaks on small businesses, period. Not 'spend more money you don't have, and we'll tax you less on IT' nonsense.
Lets see how Obama blames Bush tonight....
Riiight...why don't we just give gazllionaires incentives buy yachts...after all...the 20 people who make them are people too... What's your solution?
Not mine, but one that will work.
You can't have the war machine that you love to cheer on without an income tax. AND...you can't pay down the debt without one either. Offer a solution that is practical...
The FairTax brings in the same revenue that the current draconian economy killing freedom killing progressive income
I'm an optimist, so I keep holding out hope that someday we'll actually see a national sales tax as a replacement for income-based taxes.
You know this how?
I read the books.
So Alice In Wonderland actually happened?
The tax code is too much of a money maker...it will never change...
Weak reply. Why are you afraid to read the books?
I know the arguments...they aren't compelling. You are not going to see any type of change to the tax code unless it accompanies a major change in the way that the government operates otherwise it would have happened... Cut defense spending 75%...spend only what is necessary to defend our borders...it's INSANE what we spend on defense...
No, you've been told the talking points of people with an agenda of using the tax code for pilfer and profit. Until you read the books and form your own opinion all you are doing is parroting them.
#2. To: go65 (#1)
#3. To: go65 (#1)
...this is on top of the $79 billion in small-business tax breaks that were part of the stimulus.
#4. To: go65 (#1)
this is on top of the $79 billion in small-business tax breaks that were part of the stimulus.
#5. To: Badeye (#2)
The problem is small business doesn't have the cash on hand to make the purchases to receive the tax breaks.
#6. To: Badeye (#4)
For what, exactly?
#7. To: go65 (#6)
#8. To: go65 (#6)
#9. To: war (#0)
extending through 2010 a temporary tax incentive that encourages businesses to accelerate purchases of equipment
#10. To: Happy Quanzaa (#9)
Just what every idle factory needs, shiny new equipment to make stuff they can't sell.
#11. To: r-u-n-n-o-f-t (#9)
Just what every idle factory needs, shiny new equipment to make stuff they can't sell. Makes sense to me.
#12. To: war (#11)
#13. To: Client 9 (#12)
#14. To: war (#13)
tax income seizure.
#15. To: Happy Quanzaa (#14)
The FairTax brings in the same revenue that the current draconian economy killing freedom killing progressive income tax income seizure.
#16. To: Happy Quanzaa (#14)
The FairTax brings in the same revenue...
#17. To: war (#16)
SUPPORT HR 25
#18. To: Happy Quanzaa (#17)
#19. To: go65 (#15)
I'm an optimist, so I keep holding out hope that someday we'll actually see a national sales tax as a replacement for income-based taxes.
#20. To: war (#18)
#21. To: Happy Quanzaa (#20)
#22. To: war (#21)
I know the arguments...
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