Small Businesses Already Investing Due to Tax Cut

Weatherman2020

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Mar 3, 2013
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Winning.
That’s the word from Small Business Administration (SBA) Administrator Linda McMahon.

“Well, what they’re saying with the new tax reform package passed that they are going to take the proceeds from any tax savings that they have and reinvest them in their business. So, you know, they complained about taxes. They wanted to see regulatory reform. And under President Trump, they are seeing both of those issues addressed. And they’re very enthusiastic about it.”

Tax Cuts Will Spark More Small Business Jobs, SBA Chief Says
 
Not the most credible source; a Trump appointee talking to a Fox commentator. It's a big world, inevitably a few will hire with these funds. Most will pay down debts, strengthen their balance sheet, buy a nicer car or invest in capital equipment (possibly replacing jobs). But hey, I'll always take a tax cut.
 
Not the most credible source; a Trump appointee talking to a Fox commentator. It's a big world, inevitably a few will hire with these funds. Most will pay down debts, strengthen their balance sheet, buy a nicer car or invest in capital equipment (possibly replacing jobs). But hey, I'll always take a tax cut.

tax cuts are obviously great. they save money just they way lower raw material costs would. Of course those that pass the savings on bankrupt the competition, hire more workers, and raise our standard of living. This is called Republican capitalism. Welcome to your first lesson in economics and business.
 
For MANY reasons tax cuts are NOT the same as a reduction in material costs. Have your employer explain this to you on Monday Ed.
 
Winning.
That’s the word from Small Business Administration (SBA) Administrator Linda McMahon.

“Well, what they’re saying with the new tax reform package passed that they are going to take the proceeds from any tax savings that they have and reinvest them in their business. So, you know, they complained about taxes. They wanted to see regulatory reform. And under President Trump, they are seeing both of those issues addressed. And they’re very enthusiastic about it.”

Tax Cuts Will Spark More Small Business Jobs, SBA Chief Says

I have an amazing not-new way to not only not-pay old rates, but actually pay ZERO tax rate on money you want to re-invest into bussiness...JUST DO IT, no tax-cut necessary.

Re-investment into business is also called EXPENSE, a direct tax write off.
 
Not the most credible source; a Trump appointee talking to a Fox commentator. It's a big world, inevitably a few will hire with these funds. Most will pay down debts, strengthen their balance sheet, buy a nicer car or invest in capital equipment (possibly replacing jobs). But hey, I'll always take a tax cut.

tax cuts are obviously great. they save money just they way lower raw material costs would.

NOPE wrong. Money spent on raw materials are taxed at zero percent, with or without tax cuts.

They only thing tax-cuts effect is how much actual PROFIT you pocket, they do not reduce costs.
 
Thank you Antontoo, Most here don't understand that corporate taxes are different than income taxes. Guys like Ed, who has been a wage slave his whole life, just don't get the mechanics of corporate taxes. Or finance. Life is so much simpler for them.
 
Winning.
That’s the word from Small Business Administration (SBA) Administrator Linda McMahon.

“Well, what they’re saying with the new tax reform package passed that they are going to take the proceeds from any tax savings that they have and reinvest them in their business. So, you know, they complained about taxes. They wanted to see regulatory reform. And under President Trump, they are seeing both of those issues addressed. And they’re very enthusiastic about it.”

Tax Cuts Will Spark More Small Business Jobs, SBA Chief Says

I have an amazing not-new way to not only not-pay old rates, but actually pay ZERO tax rate on money you want to re-invest into bussiness...JUST DO IT, no tax-cut necessary.

Re-investment into business is also called EXPENSE, a direct tax write off.
Dufus thinks a tax deduction is 100% reduction of taxes paid. Oy.
 
Winning.
That’s the word from Small Business Administration (SBA) Administrator Linda McMahon.

“Well, what they’re saying with the new tax reform package passed that they are going to take the proceeds from any tax savings that they have and reinvest them in their business. So, you know, they complained about taxes. They wanted to see regulatory reform. And under President Trump, they are seeing both of those issues addressed. And they’re very enthusiastic about it.”

Tax Cuts Will Spark More Small Business Jobs, SBA Chief Says

I have an amazing not-new way to not only not-pay old rates, but actually pay ZERO tax rate on money you want to re-invest into bussiness...JUST DO IT, no tax-cut necessary.

Re-investment into business is also called EXPENSE, a direct tax write off.
Dufus thinks a tax deduction is 100% reduction of taxes paid. Oy.

Maybe dufus like you, I never said anything crazy like that.

Suppose you make $1 mil a year and want to invest it back into business.

That 1 million is an EXPENSE and as such will lower your taxable income to nothing, making income tax rate IRRELEVANT.
 
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Winning.
That’s the word from Small Business Administration (SBA) Administrator Linda McMahon.

“Well, what they’re saying with the new tax reform package passed that they are going to take the proceeds from any tax savings that they have and reinvest them in their business. So, you know, they complained about taxes. They wanted to see regulatory reform. And under President Trump, they are seeing both of those issues addressed. And they’re very enthusiastic about it.”

Tax Cuts Will Spark More Small Business Jobs, SBA Chief Says

I have an amazing not-new way to not only not-pay old rates, but actually pay ZERO tax rate on money you want to re-invest into bussiness...JUST DO IT, no tax-cut necessary.

Re-investment into business is also called EXPENSE, a direct tax write off.
Dufus thinks a tax deduction is 100% reduction of taxes paid. Oy.

Maybe dufus like you, I never said anything crazy like that.
You most certainly did. As well as say businesses can pull money out of thin air.
 
Winning.
That’s the word from Small Business Administration (SBA) Administrator Linda McMahon.

“Well, what they’re saying with the new tax reform package passed that they are going to take the proceeds from any tax savings that they have and reinvest them in their business. So, you know, they complained about taxes. They wanted to see regulatory reform. And under President Trump, they are seeing both of those issues addressed. And they’re very enthusiastic about it.”

Tax Cuts Will Spark More Small Business Jobs, SBA Chief Says

I have an amazing not-new way to not only not-pay old rates, but actually pay ZERO tax rate on money you want to re-invest into bussiness...JUST DO IT, no tax-cut necessary.

Re-investment into business is also called EXPENSE, a direct tax write off.
Dufus thinks a tax deduction is 100% reduction of taxes paid. Oy.

Maybe dufus like you, I never said anything crazy like that.
You most certainly did. As well as say businesses can pull money out of thin air.

No I didn't retard, see my edit with example.

Money spent on investments are not subject to income tax (given that you structure your tax liability correctly).
 
Winning.
That’s the word from Small Business Administration (SBA) Administrator Linda McMahon.

“Well, what they’re saying with the new tax reform package passed that they are going to take the proceeds from any tax savings that they have and reinvest them in their business. So, you know, they complained about taxes. They wanted to see regulatory reform. And under President Trump, they are seeing both of those issues addressed. And they’re very enthusiastic about it.”

Tax Cuts Will Spark More Small Business Jobs, SBA Chief Says

I have an amazing not-new way to not only not-pay old rates, but actually pay ZERO tax rate on money you want to re-invest into bussiness...JUST DO IT, no tax-cut necessary.

Re-investment into business is also called EXPENSE, a direct tax write off.
Dufus thinks a tax deduction is 100% reduction of taxes paid. Oy.

Maybe dufus like you, I never said anything crazy like that.
You most certainly did. As well as say businesses can pull money out of thin air.

No I didn't retard, see my edit with example.

Money spent on investments are not subject to income tax (given that you structure your tax liability correctly).
And this extra money magically appears from where?

Oh yeah. The Trump tax cuts.
 
NOPE wrong. Money spent on raw materials are taxed at zero percent, with or without tax cuts.
agreed but subject was whether tax cuts and raw material cost cuts both leave more profit after tax with which to expand business. Do you know the answer?
 
Suppose you make $1 mil a year and want to invest it back into business.

That 1 million is an EXPENSE and as such will lower your taxable income to nothing, making income tax rate IRRELEVANT.

obviously tax is always relevant which is why GE for example has 1000 full time tax professionals.
if you take the 1 million as income you pay tax on it and are left with 700,000 to play with.
if you invest it all and deduct it all you are left with $0 and nothing to play with. thus the tax caused you to invest making it very very relevant. Do you understand now??
 
Suppose you make $1 mil a year and want to invest it back into business.

That 1 million is an EXPENSE and as such will lower your taxable income to nothing, making income tax rate IRRELEVANT.

obviously tax is always relevant which is why GE for example has 1000 full time tax professionals.
if you take the 1 million as income you pay tax on it and are left with 700,000 to play with.
if you invest it all and deduct it all you are left with $0 and nothing to play with. thus the tax caused you to invest making it very very relevant. Do you understand now??
Ireland dropped its rate to 11% and half the world's major corporations moved there becuase the tax is very very relevant. Got it now??


[/QUOTE]
 
In truth small business's will not see any real change. Only larger business's will see any benefit.
 
NOPE wrong. Money spent on raw materials are taxed at zero percent, with or without tax cuts.
agreed but subject was whether tax cuts and raw material cost cuts both leave more profit after tax with which to expand business. Do you know the answer?

Both leave less profit but if we are talking specifically about incentive to invest HIGHER taxes are even arguably better.

Suppose you will make $1mil, income tax rate is 0% and you have $500,000 investment - tax incentive for investment is $0.

Now suppose tax rate is 50%. You would now write off $500,000 project and it's actual cost to you is only $250,000. Thats $250,000 incentive.
 
NOPE wrong. Money spent on raw materials are taxed at zero percent, with or without tax cuts.
agreed but subject was whether tax cuts and raw material cost cuts both leave more profit after tax with which to expand business. Do you know the answer?

Both leave less profit but if we are talking specifically about incentive to invest HIGHER taxes are even arguably better.

Suppose you will make $1mil, income tax rate is 0% and you have $500,000 investment - tax incentive for investment is $0.

Now suppose tax rate is 50%. You would now write off $500,000 project and it's actual cost to you is only $250,000. Thats $250,000 incentive.

Why do you believe that an income tax is even SLIGHTLY constitutional? Do you know that America had a functioning government and infrastructure before the 16th amendment was fraudulently passed?
 
Suppose you make $1 mil a year and want to invest it back into business.

That 1 million is an EXPENSE and as such will lower your taxable income to nothing, making income tax rate IRRELEVANT.

obviously tax is always relevant which is why GE for example has 1000 full time tax professionals.
if you take the 1 million as income you pay tax on it and are left with 700,000 to play with.
if you invest it all and deduct it all you are left with $0 and nothing to play with. thus the tax caused you to invest making it very very relevant. Do you understand now??
Ireland dropped its rate to 11% and half the world's major corporations moved there becuase the tax is very very relevant. Got it now??

"play with"? You take a loan and make it up on project's expense write off next year. DUH.

Expense is expense, when you write it off is of little difference with just a bit of planning. There is almost always a way to pay 0% tax rate on spending back into business. That's why income tax rates are piss poor way to increase investment.

Read up:
Why Corporate Tax Cuts Won’t Create Jobs
 
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