this is another grand announcement of something that already exists; this exact "incentive" was included in the flaccid stimulus. it already doesn't work, so by obamite logic, the obvious move is to do it bigger for longer.
businesses don't lack capital. they are sitting on a couple of trillion dollars; they're just afraid to spend it because they are terrified of what obamacare, the financial "reform", the impending massive tax hikes that are on the horizon, and whatever kind of mayhem the lame duck session of congress can create.
they don't get it. they just really, really don't get it. you can't create the insane expansion of the central government, and then expect people to respond to "tax incentives". no one is buying it, yet they keep on running the same play over and over.
Obama Capital Investment Tax Break To Offer $150B Relief
WASHINGTON (Dow Jones)--A proposal from President Barack Obama to allow businesses to expense 100% of capital investments would provide $150 billion in tax relief, according to a report to be released Friday by the Treasury Department.
The proposal, which needs congressional approval, allows businesses to expense all capital investments from September 2010 through 2011.
The proposal is part of a handful of ideas Obama offered in September to help spur economic growth and gain the support of the business community, which has been highly critical of the president. Among the other ideas Obama proposed was the extension of a research and experimentation tax credit, which has in the past garnered the support of businesses and Republicans.
The administration says the proposal to allow companies to expense capital investments will be particularly helpful to the business community and overall economy.
"This might be the best bang-for-the-buck investment incentive that one could design," a senior administration official said Thursday evening.
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