What Obama’s Proposed Tax Cuts Mean for Small Businesses

[tony hipchest]

shouldnt obama be more focused on his masterplan to tax these people into oblivion and put them all out of business?

http://www.businessweek.com/smallbiz...n_id=rss_smlbz

Here’s a welcome report for entrepreneurs this new year: President-elect Barack Obama’s massive stimulus plan is expected to include three key tax breaks for small-business owners.

Details are still emerging, but the plan could include a longer window for businesses to “carry back” losses; an incentive to invest in machinery, equipment and other capital improvements; and a tax credit for job creation.

How soon can that get money into your hands? Faster than you might imagine. I spoke with Barbara Weltman, a tax attorney in Millwood, N.Y., who says an extension of a carry back period for losses could significantly help businesses that had been profitable in years past, but struggled in 2008.

Here’s how it might work: If you experienced a downtick last year, you can claim a net operating loss or NOL, which is essentially when expenses exceed revenues. Current tax law allows you to use that NOL to offset the past two years’ income, which could win you an immediate cash refund. Under the Obama stimulus plan, that carry back period would be extended, allowing you to use that NOL to reduce the past five years’ tax bills. That’s “a big deal,” she says. “It allows you to get an immediate cash infusion that you can use to help you survive now.”

If you do get a cash refund, another proposed tax break might spur you to plow that money back into your business. The Section 179 (first-year expensing) deduction for purchases of new equipment or machinery is expected to increase to $250,000. Currently, the limit for 2009 is $133,000.

Another piece of the Obama stimulus package could be a one-year tax credit for job creation. The president-elect has pledged to create 3 million new jobs to offset 2008’s steep losses. Republican Congressional leaders have indicated they would support tax relief, although size and scope would need to be worked out. The emergency package could be passed within weeks of Obama’s inauguration.

[revefsreleets]

That's all fine and good, BUT this is the exact opposite of what his track record would suggest.

Hopefully this is a sign that the guy has solid staff and aides who are steering him down the right path.

[tony hipchest]

Originally Posted by revefsreleets

Hopefully this is a sign that the guy has solid staff and aides who are steering him down the right path.

doubtful if theyre all liberals left over from the clinton administration (ie same ol, same ol).

being the smart man that he is, im sure he recognizes the economic situation is far worse now than it was last year or even in the summer. a successful president must be flexible and able to adapt.

[revefsreleets]

Clinton wasn't THAT bad to small business. But he was also a centrist. So far, that's what Obama is doing best, shifting towards the middle where he needs to govern from. I have very few complaints with anything he has proposed so far post-election.

[Preacher]

Originally Posted by revefsreleets

Clinton wasn't THAT bad to small business. But he was also a centrist. So far, that's what Obama is doing best, shifting towards the middle where he needs to govern from. I have very few complaints with anything he has proposed so far post-election.

I gotta disagree... (Or should I say, qualify the statement).

He was quite far left when he came into office. However, he was faced with a reality... be a 1 term president like Carter, or move to the center. He moved to the center declaring the era of "big government" over.

Some of the Clinton aides that have come in probably remember that. Therefore, regardless of where Obama's personal feelings are (the small amount that his record does show), puts him quite far left. However, he seems wise enough to move center-left to govern. Good for him.

If this does go through. I would support it and be happy for my president.


Now the games Pelosi is playing is a whole different story.

[revefsreleets]

Clinton was a new democrat, from the Democratic Leadership Council school. His own party turned on him at points because they considered DLC "Republican Lite".

But I agree that he was pretty liberal for most of his 12 years as Governor of Arkansas.

[revefsreleets]

Clinton was a new democrat, from the Democratic Leadership Council school. His own party turned on him at points because they considered DLC "Republican Lite".

But I agree that he was pretty liberal for most of his 12 years as Governor of Arkansas.

[Preacher]

Originally Posted by revefsreleets

Clinton was a new democrat, from the Democratic Leadership Council school. His own party turned on him at points because they considered DLC "Republican Lite".

But I agree that he was pretty liberal for most of his 12 years as Governor of Arkansas.

Originally Posted by revefsreleets

Clinton was a new democrat, from the Democratic Leadership Council school. His own party turned on him at points because they considered DLC "Republican Lite".

But I agree that he was pretty liberal for most of his 12 years as Governor of Arkansas.

Looks like we have problems with the board double-posting again.

[GBMelBlount]

Originally Posted by tony hipchest

being the smart man that he is, im sure he recognizes the economic situation is far worse now than it was last year or even in the summer. .

Or just a flat out liar....

[tony hipchest]

Originally Posted by smokin3000gt

We'll see. So far it's just talk and this small business is still struggling..

the entire global economy is struggling. cant blame obama for that. the man aint even in office yet and shit was on a downward spiral, long before he was elected.

but honestly, the only solution to the problem is to push our ever increasing debt even further into the future (regardless of who is in charge) and hope that a global war wipes us or our future generations out before its time to pay up.