Republicans LIE about the tax hike hurting small businesses

[Koios]

What? So buying farm equipment is taxed as farmer's personal income? I'm not a tax expert, but this seems very wrong to me.

Oh, and it seems like it is wrong:
New tax rules allow more write-offs for farm equipment purchases | Equipment content from Delta Farm Press

No. It's an asset, as is cash or A/R. But it's depreciable, in accelerated fashion if folks so choose. Thus the expense cannot be expensed at the time purchase, unless, and this common, equipment purchases up to a point, can be written off if bought before year end. Programs like that are common, to spur durable good sales to businesses.

But it's merely, in effect, depreciating it all at once as opposed to over a 5 year period.

Yes, but it helps to point out that the fact that someone who has over $250,000 in taxable income may have only been able to get a small portion of that in cash for themselves; reinvesting profits into a business often leads to little or no deductions and therefore a larger tax bill may prevent the owner from making those investments.

The price of poor planning.

 

[LilOlLady]

10% tithings was a form of taxes and is still used by most chruches. Isn't the Jubilee Year a form of entitlement program? Similar to bankruptcy?

 

[Koios]

10% tithings was a form of taxes and is still used by most chruches. Isn't the Jubilee Year a form of entitlement program? Similar to bankruptcy?

Of course. But churches are merely the oldest form of government.

 

[Koios]

What? So buying farm equipment is taxed as farmer's personal income? I'm not a tax expert, but this seems very wrong to me.

Oh, and it seems like it is wrong:
New tax rules allow more write-offs for farm equipment purchases | Equipment content from Delta Farm Press

No. It's an asset, as is cash or A/R. But it's depreciable, in accelerated fashion if folks so choose. Thus the expense cannot be expensed at the time purchase, unless, and this common, equipment purchases up to a point, can be written off if bought before year end. Programs like that are common, to spur durable good sales to businesses.

But it's merely, in effect, depreciating it all at once as opposed to over a 5 year period.

Yes, but it helps to point out that the fact that someone who has over $250,000 in taxable income may have only been able to get a small portion of that in cash for themselves; reinvesting profits into a business often leads to little or no deductions and therefore a larger tax bill may prevent the owner from making those investments.

And I should add, from an economic standpoint, let's say you have a business and buy a fancy $15,000 copier/printer, and depreciate 20% of it cost in that tax year. What's the difference, if you instead take it as income, pay tax on that portion, and spend it on your family? Tax revenue, obviously, is effected, slightly. But the $15 grand still goes back into the economy, and moves around. No change there.

 

[BillyV]

No. It's an asset, as is cash or A/R. But it's depreciable, in accelerated fashion if folks so choose. Thus the expense cannot be expensed at the time purchase, unless, and this common, equipment purchases up to a point, can be written off if bought before year end. Programs like that are common, to spur durable good sales to businesses.

But it's merely, in effect, depreciating it all at once as opposed to over a 5 year period.

Yes, but it helps to point out that the fact that someone who has over $250,000 in taxable income may have only been able to get a small portion of that in cash for themselves; reinvesting profits into a business often leads to little or no deductions and therefore a larger tax bill may prevent the owner from making those investments.

The price of poor planning.

Please elaborate on how reinvesting in your small business is "poor planning"?

 

[LilOlLady]

Not a tax hike but putting taxes back to when times were good. Employment was low. Did not put small business out of business or affect hiring. This is just a right wing thing to hurt the economy and make obama look bad and give them a shot in 2016 no matter how it affect the hard working taxpayers. The right is mean spirited and corrupt and hate obama.

 

[Koios]

Yes, but it helps to point out that the fact that someone who has over $250,000 in taxable income may have only been able to get a small portion of that in cash for themselves; reinvesting profits into a business often leads to little or no deductions and therefore a larger tax bill may prevent the owner from making those investments.

The price of poor planning.

Please elaborate on how reinvesting in your small business is "poor planning"?

Investing more than you have, while still leaving enough liquidity to meet your other obligations.

Smart businesspeople do not do that.

 

[LilOlLady]

10% tithings was a form of taxes and is still used by most chruches. Isn't the Jubilee Year a form of entitlement program? Similar to bankruptcy?

Of course. But churches are merely the oldest form of government.

If churches worked for the people, Orphans and widows and the poor. For what the Christian chruch is worth, it should be taxes also.

 

[Koios]

10% tithings was a form of taxes and is still used by most chruches. Isn't the Jubilee Year a form of entitlement program? Similar to bankruptcy?

Of course. But churches are merely the oldest form of government.

If churches worked for the people, Orphans and widows and the poor. For what the Christian chruch is, it should be taxes also.

Perhaps, but that does not tend to conjure up images of the Famiglia de Medici, for me anyway. Hahahahaha.

 

[LilOlLady]

Only reason small business don't do well doing a recession is because people not working do not make purchases. Put people back to work will get people off entitlements and pay down the deficit and revive small businesses.

 

[LilOlLady]

Of course. But churches are merely the oldest form of government.

If churches worked for the people, Orphans and widows and the poor. For what the Christian chruch is, it should be taxes also.

Perhaps, but that does not tend to conjure up images of the Famiglia de Medici, for me anyway. Hahahahaha.

OMG another village idiot.

 

[Koios]

Only reason small business don't do well doing a recession is because people not working do not make purchases. Put people back to work will get people off entitlements and pay down the deficit and revive small businesses.

Thanks, but ...

How do we get them back to work?

 

[Koios]

If churches worked for the people, Orphans and widows and the poor. For what the Christian chruch is, it should be taxes also.

Perhaps, but that does not tend to conjure up images of the Famiglia de Medici, for me anyway. Hahahahaha.

OMG another village idiot.

Apparently. But mind my asking why?

 

[BillyV]

The price of poor planning.

Please elaborate on how reinvesting in your small business is "poor planning"?

Investing more that you have, while still leaving enough to meet your other obligations.

Smart businesspeople do not do that.

And I'm sure you can identify where I indicated "investing more than you have"? The point is that people assume that someone who has $250,000 in taxable income has that available to spend on themselves and therefore can buy whatever personal items they want, so why not raise taxes on them. The reality is often that they have no more disposable income than their employees because they are investing that back into the business for growth. Adding to their tax burden doesn't mean instead of $250,000 to spend they only have $230,000; it could mean that they will not be able to add that additional piece of equipment that would help make their business more efficient and profitable (hence generating even more taxable income).

 

[mikegriffith1]

Well, again, if you really care about small businesses, which create over 60% of new jobs, you might want to consider the fact that small business associations are raising the alarm about raising the top tax brackets; they are pointing out that raising the top two rates would impact about 48% of small business income.

My previous reply included a link to a study done by the National Federal of Independent Businesses that points out, among other things, that 14%, not 3%, of small businesses would be affected by raising the top two rates. We must keep in mind that quite a few "small businesses" are not really businesses as such but as forms of "pass through" income for individuals. You can't count those when you calculate the impact that tax hikes would have on small businesses and their employees.

So if you really care about small businesses, then perhaps you should listen to what they're saying on this issue.

 

[ilia25]

reinvesting profits into a business often leads to little or no deductions

That seems like a great exaggeration to me. There must be rules to prevent abusing the system (like depreciation), but as a rule, a business investment should not be treated as a personal income. It just doesn't make sense.

 

[Koios]

Please elaborate on how reinvesting in your small business is "poor planning"?

Investing more that you have, while still leaving enough to meet your other obligations.

Smart businesspeople do not do that.

And I'm sure you can identify where I indicated "investing more than you have"? The point is that people assume that someone who has $250,000 in taxable income has that available to spend on themselves and therefore can buy whatever personal items they want, so why not raise taxes on them. The reality is often that they have no more disposable income than their employees because they are investing that back into the business for growth. Adding to their tax burden doesn't mean instead of $250,000 to spend they only have $230,000; it could mean that they will not be able to add that additional piece of equipment that would help make their business more efficient and profitable (hence generating even more taxable income).

Then why ask for clarification?

Meanwhile, no need to worry about someone acting foolishly and not seizing the market. Others will, rest assured. So try not to lose sleep that opportunity will be missed. It rarely is.

But what's the mother of opportunity? Field of dreams nonsense, as many Republicans believe? (make a widget, and it spawns widget buyers from out of thin air?)

Opportunity comes from: a) people, and; b) the money they make. Period. Until we grow wages, things will tough for those who sell stuff, and thus they'll buy less things for their businesses.

 

[Koios]

Well, again, if you really care about small businesses, which create over 60% of new jobs, you might want to consider the fact that small business associations are raising the alarm about raising the top tax brackets; they are pointing out that raising the top two rates would impact about 48% of small business income.

My previous reply included a link to a study done by the National Federal of Independent Businesses that points out, among other things, that 14%, not 3%, of small businesses would be affected by raising the top two rates. We must keep in mind that quite a few "small businesses" are not really businesses as such but as forms of "pass through" income for individuals. You can't count those when you calculate the impact that tax hikes would have on small businesses and their employees.

So if you really care about small businesses, then perhaps you should listen to what they're saying on this issue.

And they would be lying.

 

[Uncensored2008]

The price of poor planning.

Poor planning in the guise of allowing Obama to be reelected. Yes, the nation and small business will suffer severely due to this poor planning.

 

[Uncensored2008]

10% tithings was a form of taxes and is still used by most chruches. Isn't the Jubilee Year a form of entitlement program? Similar to bankruptcy?

Psst... Tithes are voluntary. I pay nothing to any church - but no IRS agents are hunting me...