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Obama to introduce another business tax cut

Jetboogieman

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(CNN) -- In another move aimed at stabilizing the still-shaky economy, President Barack Obama on Wednesday will introduce a new $200 billion tax cut giving businesses across the country an incentive to buy new equipment in the short term, according to a senior administration official.

The tax cut would allow businesses to write off 100 percent of new investments in plants and equipment made between now and the end of 2011, according to the senior administration official.

The new tax cut will be in addition to a $100 billion permanent extension of the business tax credit for research and development, as well as $50 billion in new infrastructure spending included in a package that the president will officially unveil Wednesday during an economic speech in Cleveland, Ohio.

The $100 billion tax credit proposal was reported by CNN on Sunday while Obama himself disclosed the infrastructure spending Monday in a fiery speech at a Labor Day event in Milwaukee, Wisconsin, in which he tried to draw a sharp contrast with Republican economic plans.

"I don't want to give them the keys back," Obama said. "They don't know how to drive ... They're going to pop it into reverse and have special interests riding shotgun and we'd be right back in the ditch."
It would be highly interesting if the Republicans opposed this plan.
 

j-mac

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It would be highly interesting if the Republicans opposed this plan.

You do realize the difference between a "tax cut" and "tax credits" don't you? I mean I know CNN is blurring the lines here, as is Obama, but still, let's be clear a tax credit is not a tax cut.


j-mac
 

Jetboogieman

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You do realize the difference between a "tax cut" and "tax credits" don't you? I mean I know CNN is blurring the lines here, as is Obama, but still, let's be clear a tax credit is not a tax cut.


j-mac
FOXNews.com - Obama to Propose Massive Tax Breaks for Businesses to Invest in Growth

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.
That more to your liking J-Mac?
 

Renae

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He's playing **** politics is what he's doing. He's bundling his 50 Billion new "Stimulus" in with these "tax cuts". Basically if the GOP fights the 50Bill they lose, and if they support him, they lose.

Obama, master of divisive politics.
 

j-mac

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Jetboogieman

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Oh, I get it, you think because the story from FOX says "tax break" that makes it better? Look, It is NOT a tax cut. Let me ask you, if a business can't afford to buy new equipment, do they get a break in taxes? NO! So this isn't what Obama says it is, what it is, is another lie in a campaign cycle.


j-mac
GASP! A conservative opposing tax cuts of any kind. You a communist or something?

He's playing **** politics is what he's doing. He's bundling his 50 Billion new "Stimulus" in with these "tax cuts". Basically if the GOP fights the 50Bill they lose, and if they support him, they lose.

Obama, master of divisive politics.
Yep. Tax cuts and spending. The Reagan way...

Shouldn't you be happy?
 

j-mac

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GASP! A conservative opposing tax cuts of any kind. You a communist or something?
Wow! how sad democrat politics has become. You think because your leaders lie that everyone should be stupid enough to just follow along like lemmings and say what a wonderful thing eh? Maybe that's good enough for you, but not for me sir.

Look, if he want's to give credits to business for updating their equipment? I say good, do that, but give a genuine tax cut, or extend the Bush tax rates until we get going again, and don't lie to me and tell me that a credit is a cut, it is not.

j-mac
 

Jetboogieman

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Wow! how sad democrat politics has become. You think because your leaders lie that everyone should be stupid enough to just follow along like lemmings and say what a wonderful thing eh? Maybe that's good enough for you, but not for me sir.
I'm not a democrat. He told you what he's gonna do. Who's lying?

Look, if he want's to give credits to business for updating their equipment? I say good, do that, but give a genuine tax cut, or extend the Bush tax rates until we get going again, and don't lie to me and tell me that a credit is a cut, it is not.

j-mac
You're opposing this for the sake of it. Do you actually UNDERSTAND what it means.

"proposed expansion of the research and experimentation tax credit to $50 billion"

The Credit comes in if a company invests in R&D...

Basically what he's saying is, if you buy new equipment, we won't tax you on it... which is a tax cut.
 

The Prof

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1. now that november is nearing at a breakneck, the presidential putz is suddenly racing to his right---what does that tell YOU?

2. Obama plans big economic push: Too little, too late? - CNN.com

party on!

seeya in exactly 8 weeks---in pennsylvania, in michigan, in delaware, in wisconsin, california, colorado, arizona, washington, in salem, oregon...

it's gonna be FUN!
 

j-mac

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I'm not a democrat.
Yeah, uh huh....K. :lol:

He told you what he's gonna do.
No, he said what he want's to do, and was deceptive in the language in laying it out.

Who's lying?
Barrack Hussein Obama

You're opposing this for the sake of it.
No, I think that in this time we have to do anything we can to get out of this depression Obama has created. Just don't lie about what it is.

Do you actually UNDERSTAND what it means.
Do you?

"proposed expansion of the research and experimentation tax credit to $50 billion"
See the bolded words there, now define them for me would you?

The Credit comes in if a company invests in R&D...
Yep, and the companies that can't get the capital to invest in the R&D? I guess tough luck for them eh?

Basically what he's saying is, if you buy new equipment, we won't tax you on it... which is a tax cut.
Clearly you don't know the difference between a tax cut, and a tax credit.

j-mac
 

Jetboogieman

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Clearly you don't know the difference between a tax cut, and a tax credit.

j-mac
So not taxing people on buying new equipment is not a tax cut?

funny I guess I could say the same thing.
 

j-mac

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So not taxing people on buying new equipment is not a tax cut?
No, it is a tax credit. Here I'll lay out the difference for you, even though I think you know, but are being purposely obtuse on this matter.

Heritage experts assert that any realistic, practical plan to prime the economy’s pump must emphasize permanent reductions in income tax rates for individuals and businesses – not, as liberals advocate, one-time or short-term tax rebates and credits combined with upward of $1 trillion in deficit spending.

Reducing tax rates on Americans’ income — such as President Bush’s 2003 tax cuts and those championed roughly 20 and 40 years earlier by Presidents Reagan and Kennedy – demonstrably creates incentives to work, innovate and invest. The evidence of history and decades of research bear this out.

When a ‘Tax Cut’ Isn’t a Tax Cut | The Foundry: Conservative Policy News.
See, it really is no different if we are talking about individuals, or businesses. Obama is putting out there that if you spend the money as a business he will not charge you the tax for doing so. While this may be good for those businesses already in the process of doing that, it isn't likely to get others to do so, especially if they don't have the money to do it. So they lose.

Not only would it serve better to make the proposals actual tax cuts by cutting their bottom line expenditure to the government in the form of taxes, but it would also be better if Obama wasn't sticking his nose in business trying to tell them what and when to spend through the power of taxation.

Get it?


j-mac
 

MaggieD

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You do realize the difference between a "tax cut" and "tax credits" don't you? I mean I know CNN is blurring the lines here, as is Obama, but still, let's be clear a tax credit is not a tax cut.


j-mac
A tax credit is actually much more valuable in my mind. Brackets don't make a difference. Figure out the amount of taxes you owe and deduct the credit. If it's 'refundable,' then it's really a bonanza.

If Republicans oppose this, I really will believe they are The Party of No.
 

j-mac

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A tax credit is actually much more valuable in my mind. Brackets don't make a difference. Figure out the amount of taxes you owe and deduct the credit. If it's 'refundable,' then it's really a bonanza.

If Republicans oppose this, I really will believe they are The Party of No.

And what of the businesses that can't afford to expand this way right now? Due to the policies of this administration attacking them financially they are cash strapped. What do they get to survive? A big fat zero that's what. And the people they employ? they lose too.

Look, if you are for the credit, then fine I have no problem with that. But don't for one second say that it is a tax break for business as a whole, when we both know it only benefits those who can afford to spend the money.

j-mac
 

MaggieD

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And what of the businesses that can't afford to expand this way right now? Due to the policies of this administration attacking them financially they are cash strapped. What do they get to survive? A big fat zero that's what. And the people they employ? they lose too.

Look, if you are for the credit, then fine I have no problem with that. But don't for one second say that it is a tax break for business as a whole, when we both know it only benefits those who can afford to spend the money.

j-mac
No argument there. The tax credit part is a bit of 'economic engineering.' But remember that part of the problem is that businesses (the big ones) are sitting on their cash. And part of the solution may come from giving them added incentive to spend. They do have a future... getting big business to invest in that future with a deal-sweetener isn't a bad thing.
 

ReverendHellh0und

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I support this.


It means jack and **** to most businesses but, heck, I support it, sure.


My company's net taxes will be going up. Do you think a tax break on a new server will cancel that increase? :lamo
 

Taylor

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While this may be good for those businesses already in the process of doing that, it isn't likely to get others to do so, especially if they don't have the money to do it. So they lose.
Sounds like a business version of Cash-for-Clunkers and the Homebuyer Credit... a feel-good, no-growth approach to the economy where people who were going to buy something anyway do it sooner to get a tax credit.
 

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So not taxing people on buying new equipment is not a tax cut?

funny I guess I could say the same thing.
So he issues a convoluted tax credit for businesses right before he lets the Bush tax cuts expire and at the same time he proposes another $50 billion in stimulus....which will come from higher taxes on big businesses?

And you're on board, eh?

I've got some land in southern Arizona along the border if'n you're interested.
 

Goobieman

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So... where are the liberals asking how He plans to pay for this give-away to the rich....?
 
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liblady

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You do realize the difference between a "tax cut" and "tax credits" don't you? I mean I know CNN is blurring the lines here, as is Obama, but still, let's be clear a tax credit is not a tax cut.


j-mac
what the hell.
 

liblady

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He's playing **** politics is what he's doing. He's bundling his 50 Billion new "Stimulus" in with these "tax cuts". Basically if the GOP fights the 50Bill they lose, and if they support him, they lose.

Obama, master of divisive politics.
simply beyond ridiculous. your partisanship is scary.
 

liblady

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So... where are the liberals asking how He plans to pay for this give-away to the rich....?
you know, your argument should be that a failing business is owned by the weak, slow, and stupid. why should we support them?

my take is that this is a distinctive, targeted break, designed to boost small business. good for obama.
 

RightinNYC

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To clarify, Obama has proposed three different things:

1) $50b for infrastructure
2) $100b to make the R&D tax credit permanent
3) $200b to allow companies to deduct the full cost of capital investment in 2011
 

Goobieman

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my take is that this is a distinctive, targeted break, designed to boost small business. good for obama.
:roll:
Your take is that your Secular Messiah has proposed something, and so you will happily fall in line behind Him.
 
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