Thread: Obama to introduce another business tax cut

Originally Posted by j-mac

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.

Originally Posted by Jetboogieman

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

Originally Posted by j-mac

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.

Originally Posted by MaggieD

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

Originally Posted by j-mac

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.

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?

Originally Posted by j-mac

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.

Originally Posted by Jetboogieman

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.

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

Originally Posted by j-mac

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.