Obligatory Photos, FairTax Babes
Posted on 09/15/2006 12:51:50 PM PDT by pigdog
To be sure, more than most other groups, the real estate industry has had success at the national level in preserving incentives in the federal tax laws for real estate. For commercial residential real estate, like-kind exchange rules have allowed transfers of commercial property without taxation. Some commercial real estate companies and managers benefit from the low income housing credit and tax-exempt bond financing.
Despite these spoils of the annual tax battles, a tax system based on income seriously disadvantages commercial real estate. The disadvantages far outweigh any advantages under current law. There are, of course, the problems germane to all taxpayers. Our tax laws are complicated and waste literally hundreds of billions of dollars in compliance costs. The growth of the economy is slower than need be.
Commercial property, however, is disadvantaged in unique respects. The "income" tax system is irreparably flawed since it effectively taxes property owners multiple times: from investment, to operation to final sale. Interest rates are higher than need be because of the taxation of savings and interest as income, and economic growth is stifled by a system that penalizes savings investment. Any income from rentals are taxed when received. What remains, if reinvested into capital improvements, must be depreciated over a term of years rather than deducted as an expense. If commercial real estate is sold, "capital gains" are taxed again although the capital gains tax really
represents double taxation of a higher future income stream and its capitalization and is a tax on inflation. Finally, death taxes often result in a government-orchestrated leveraged buy-out of the property.
(Excerpt) Read more at frogpond.com ...
For a commercial real estate insight ...
You into spamming articles onto this forum from 4 years ago?
If anyone would like to be added to this ping list let me know.
John Linder in the House(HR25) & Saxby Chambliss Senate(S25) offer a comprehensive bill to kill all federal income, SS/Medicare payroll, and gift/estate taxes outright replacing them with with a national retail sales tax administered by the states.
H.R.25,S.25
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.Refer for additional information:
Great post, thanks.
more spam from the spam factory, not much momentum for the FairTax I see...
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