- Joined
- Jan 12, 2010
- Messages
- 35,183
- Reaction score
- 44,146
- Location
- Somewhere in Babylon...
- Gender
- Undisclosed
- Political Leaning
- Undisclosed
(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.
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
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.
FOXNews.com - Obama to Propose Massive Tax Breaks for Businesses to Invest in Growth
That more to your liking J-Mac?
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
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.
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
I'm not a democrat.
He told you what he's gonna do.
Who's lying?
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.
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?
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.
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.
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
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.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.
So not taxing people on buying new equipment is not a tax cut?
funny I guess I could say the same thing.
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
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.
So... where are the liberals asking how He plans to pay for this give-away to the rich....?
:roll:my take is that this is a distinctive, targeted break, designed to boost small business. good for obama.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?