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Obama will propose that companies be allowed to write off 100% of their new investment in plants...

Obama will propose that companies be allowed to write off 100% of their new investment in plants and equipment through 2011, which could cut business taxes by nearly $200B. The proposal, to be outlined tomorrow, will include a proposed expansion of the R&D tax credit and $50B in new spending on roads, railways and runways.
Comments (13)
  • tunaman4u2
    , contributor
    Comments (2743) | Send Message
     
    The free $ express doesn't have any stops eh? You can't print your way to wealth boys. History has told us that.
    7 Sep 2010, 10:22 AM Reply Like
  • woollyB
    , contributor
    Comments (1019) | Send Message
     
    And history strongly suggests that we won't stop trying.
    7 Sep 2010, 10:32 AM Reply Like
  • TKO
    , contributor
    Comments (156) | Send Message
     
    Not too sure what new investments and plants and equipments will do with capacity utilization hovering near all-time lows.

     

    A better play would be providing funding to improve infrastructure (even if it is one-time) as it tackles at least one issue facing the US -- aging infrastructure. It will have a much more positive long-lasting effect than boosting capacity at this point in time.
    7 Sep 2010, 10:27 AM Reply Like
  • coloneldebugger
    , contributor
    Comments (890) | Send Message
     
    I agree. What good is building a new factory going to do if you're not going to hire anyone to work in it?
    7 Sep 2010, 10:47 AM Reply Like
  • TKO
    , contributor
    Comments (156) | Send Message
     
    This stimulus points to a supply issue -- which is non-existent. If the government is serious about a recovery, they need to put forward a pemanent demand boost.

     

    An idea I have been thinking about would be something like a consumption tax credit if you attain a certain savings level as a % of income -- To make it fair, the level required to attain the credit would be adjusted for the income levels. It seems counter-intuitive, but it would provide savings discipline while providing a consumption based reward for being diligent.
    7 Sep 2010, 11:20 AM Reply Like
  • mike8599
    , contributor
    Comments (583) | Send Message
     
    Infrastructure as a stimulus is basically nothing, infrastructure is maintenance not stimulus - we should be doing that anyway.

     

    Simplify, conserve, and stabilize is the key to fiscal policy - just like at home. Flat tax and cut spending... we need to do the right thing now.
    7 Sep 2010, 11:35 AM Reply Like
  • markof the west
    , contributor
    Comments (4) | Send Message
     
    Use of the tax code for social engineering is a cover for the cons to get the greedy middle class to vote for their schemes in the name of helping dumb poor.
    Willy Sutton didn't steal from the poor. He let the banks do it for him.
    7 Sep 2010, 10:27 AM Reply Like
  • mattyw
    , contributor
    Comments (125) | Send Message
     
    I believe it's just a strategy, since the Republican's will block this, and the Dems will forever be able to point out how anti-business they are. Same as the infrastructure spending, which will also not be approved.
    7 Sep 2010, 10:31 AM Reply Like
  • User 489326
    , contributor
    Comments (272) | Send Message
     
    The Republicans are in the election drivers seat at the moment. However, there is still time for them to fumble. I'm thinking the Republicans are stalling in hopes of gaining House and Senate seats. Then they will put forth similar proposals and claim the recovery. My thoughts are this is a dangerous strategy for the Repubs. I normally vote 90% Republican; but, I feel the Republicans have put forth nothing other than let the chips fall where they may. Sometimes it's the thought that counts; and, I don't think the Republicans have any thoughts about my well being or anyone elses. My original thought remains, they are going to try to coast and hope the economy worsens until after Nov 4.
    7 Sep 2010, 10:50 AM Reply Like
  • 1980XLS
    , contributor
    Comments (3314) | Send Message
     
    Infrastructure spending is an attempt to appear pro-business that is actually Pro-Union.
    State and Muni budgets are strained. Any spending proposal on infrastructure should come with a 2 yr moratorium on the Davis-Bacon Act. Such would reduce cost of projects about 25% to ensure taxpayers would actually get some bang for the buck on their investment.
    Unfortunately that won't happen.
    The process of buying votes with tax money will continue.
    7 Sep 2010, 11:02 AM Reply Like
  • Fueled By Randomness
    , contributor
    Comments (290) | Send Message
     
    Why the hell would a business invest in new plant and equipment when there's no demand? Why would a business borrow millions of dollars to increase capacity (and potentially bankrupt the company) to supply demand which doesn't exist in order to write off the expense against income it doesn't have? Do any of these people have any idea of what they're doing? But I guess in a politician's world, it's normal to spend money you don't have to buy things you can't use because, hell, it's not YOUR money anyway.
    7 Sep 2010, 11:03 AM Reply Like
  • davidbdc
    , contributor
    Comments (3141) | Send Message
     
    Yet another government give-away that will produce nothing.

     

    Earth to Obama - The budget is in a 1.3 TRILLION deficit this year and next!! Has everyone forgotten how we went to SouthEast Asia in the 90's and told them austerity was the way forward? How we told them to let the market be free and to balance government budgets????

     

    Oh, and they did it and it worked!!! Now if we could just get the government out of the housing market, out of the free money market, and reduce spending........ we might start to see the light at the end of the tunnel. Pathetic.
    7 Sep 2010, 11:19 AM Reply Like
  • Truth-hurts
    , contributor
    Comments (148) | Send Message
     
    It's been over 30 years since Carter expanded the Section 179 deduction beyond what made accounting sense. Reagan expanded it further. While the details on this aren't out yet, it sounds like FCO wants to basically make everything a Section 179 deduction. While we didn't need any more evidence, this is pure fricking insanity, and will not only pull investment forward, will crush future investment.
    7 Sep 2010, 12:19 PM Reply Like
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