Voodoo Tax Policy – Bloombama News Service reports that President Obama will propose a $38 Billion tax “cut” for [greedy] business tonight.
You have to read about 2/3 of way until They explain the truth – this “cut” is a 50% writeoff on certain capital items like wind turbines – by taking the break, that means the business will get less deductions during the remainder of the life of the asset – and if rates go up in the future or the company is losing money, taking the “break” now could actually cost them money in the long run.
What businesses need to start investing again in capital goods is predictability about the future – interest rates, tax rates, employee costs, regulation, protection from class action lawsuits… No amount of Stimulus will work until you address the root problem.
