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Obama to Call for Full Tax Credit for Business Purchases in 2011

by Hugh Collins Sep 7th 2010 7:00AM
Updated Sep 7th 2010 7:14AM
President Barack Obama will call for new rules allowing business to deduct from their taxes through 2011 the full value of the purchase of equipment.

The planned deductions are intended to encourage companies to invest in equipment such as computers and utility generators, stimulating the economy The New York Times reported. It would cost about $200 billion in revenue, although in the long run that cost would shrink to $30 billion.

Obama will announce the plan in a speech on Wednesday in Cleveland, along with measures including $50 billion for infrastructure investments. The speech will also include a provision to expand and make permanent a tax credit for company research and development.

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9 Comments

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basscat58

More Class Warfare from the Socialist! What happened with the 900 billion Stimulus that was suppost to keep unemployment under 8%? Vote all the Radical Left Wing Dem's out in Nov. Remember Obamacare and the Dem's arrogance last Christmas!

September 07 2010 at 1:59 PM Report abuse -1 rate up rate down Reply
lbhsny54

Only 18 months before he can make a decisons where's the rest Big Guy the small business need more incentives and less concern about rising costs and tax from Obama Land

September 07 2010 at 11:51 AM Report abuse rate up rate down Reply
David

its to little way to late. There are already pleanty of very low interest loans that companies can use if they need equipment. The problem is why would they get the equipment, if their is no need for expansion. Many tax cuts across the board are needed, not just a bandaid on a shark bite. It seems to show a real lack of understanding of what drives the economy.

September 07 2010 at 11:29 AM Report abuse rate up rate down Reply
ericdohse

I like the idea of tax cuts only for those that don't make any money - especially for all of the OBAMA-UNEMPLOYED - What A GREAT CONCEPT - while they are at it, they ought to increase the amount of the HAND-OUT for the UNEARNED income credit... who the hell ever came up with that concept... UNEARNED...???? How many poor people have hired you???

September 07 2010 at 10:14 AM Report abuse rate up rate down Reply
ericdohse

HOW DOES THIS "COST" $200B in revenue... It would likely be on purchases that wouldn't be made otherwise and the MANUFACTURERS would have ADDITIONAL REVENUE that would be taxed (LIBS love that concept) - plus, more employees possibly hired to manufacture the equipment - BLOATED UNION JOBS no doubt... (LIBS LIKE THAT TOO!) - but the employees would also be taxed - and more UNION DUES to funnel to DEMOCRAT CAMPAIGN FUNDS...

September 07 2010 at 10:08 AM Report abuse -1 rate up rate down Reply
usacars

What happened to Obama's Socialist view on the economy? Finally, He Got The News. Tax Cuts Mean Economic Growth. Two years wasted on giveaways, Cash for Clunkers, Bank Bailouts, Mortgage Bailouts, Union Bailouts etc.

September 07 2010 at 9:49 AM Report abuse -1 rate up rate down Reply
1 reply to usacars's comment
David

Your right but there is very little demand for equipent in this economy.

September 07 2010 at 11:30 AM Report abuse -1 rate up rate down Reply
frank1946

Business likes stability, consistant policy, ten year window so planning can be made on investment in Capital Assets...........one year ? This President is a child of Politics........he does not understand Business ! Abolish Capital Taxes for ten years, Mr. President, all our competitors are way ahead of us, one year is not enough, where are the other nine years ?

September 07 2010 at 7:31 AM Report abuse +1 rate up rate down Reply
1 reply to frank1946's comment
David

Frank, Good idea, that is a plan that would work.

September 07 2010 at 11:33 AM Report abuse -1 rate up rate down Reply