Posted on 11/11/2010 9:18:59 AM PST by afraidfortherepublic
Calvin Coolidge once said, "The chief business of the American people is business." The Democrats just lost America because they forgot that.
On second thought, you can't forget what you never knew. The Democrats running things the past two years proved they have no clue about the business of business. In their world, the real world of the private economy is an abstraction, a political figment.
Exhibit A: Along the road to ObamaCare, the party's planners inserted into the bill the now- famous 1099 provision, requiring businesses to do an IRS report for any transaction over $600 annually. No member of Congress, White House staffer or party flunky thought to say, "Oh, wow, this 1099 requirement will crush people running their own businesses. Are we sure we want to do this?" Yes, and that 1099 fiasco is a metaphor now for the modern Democratic Party.
Exhibit B: The Obama ban on offshore oil drilling. It floated out of the White House, Energy Department and EPA without anyone thinking: "Whoa, this is going to kill hundreds of working-class guys and their families."
(Excerpt) Read more at online.wsj.com ...
What are the odds we could get the oil companies to just go ahead and drill anyway, and tell the president to go F* himself
That would do a lot for morale among us normal people.
The liberal world is based on an ivory tower, theoretical construct of a utopian model where there is no such thing as unintended consequences. They simply don't know how to deal with reality.
Obummer wants to also eliminate the interest deduction on home loans....
I can tell you that the oil companies are not just sitting around, sucking their thumbs.
We make a small device used in oceanic exploration for new oil reserves. We cannot make them fast enough, normally shipping 250 per week. We’d produce more, if we could get more of an integral part. Our supplier cannot make any more of this part, thereby putting a cap on our production. Almost all of them are sold overseas which will be the future of oil drilling, if we don’t wise up.
I should add that if our supplier could find the $$$ to buy an additional machine to produce that specific part, we would buy all of his production. Then, we could hire more people to put the device together and increase our production which our end customer is anxious to buy. Jobs and more jobs.
Of course, everything will soon grind to a halt while I pull all the records and get ready to figure and file thousands of 1099s for every vendor who sold me more than $600 of widgets. And then I’ll have to worry about the 1099s that my customers will be sending me! Certainly, I’ll be looking for a filing extension.
< tinfoil_hat>
Maybe this is exactly what they want: If you're going to implement a fascist economic model, it's a lot easier to control one large enterprise than 1000 small ones.
< /tinfoil_hat>
What the author is not reporting, or I didn’t see it in the article, is that the just passed small business bill includes a provision that rental property owners now have to comply with the current 1099 rule beginning in 2011.
One more nail in the coffin, IMO. I can just imagine my 90 year old aunt, who is legally blind, complying with that. She supports herself with her rentals.
>>Of course, everything will soon grind to a halt while I pull all the records and get ready to figure and file thousands of 1099s for every vendor who sold me more than $600 of widgets. And then I’ll have to worry about the 1099s that my customers will be sending me! Certainly, I’ll be looking for a filing extension.<<
Sounds like that created a lot of jobs! ;)
On a related note, we call SOX the “IT full employment act”.
Me too. Why should people get a tax bonus for getting a loan? There shouldn’t be anything in the tax code that applies differently to different persons
“One more nail in the coffin, IMO. I can just imagine my 90 year old aunt, who is legally blind, complying with that. She supports herself with her rentals.”
More accounting fees for her to pay. I’m an accountant, and I won’t be doing that for free. I hate these requirements, but I’m going to charge for them until the folks vote this bunch out and get rid of the requirements, and I’m clear about the fact that I don’t write the tax laws, but I won’t place myself, or my clients in danger by violating or ignoring them.
Eh, the problem isn't in what it was supposed to do or whether it's the right thing to do in the long run, but in the immediate consequences of removing the deduction.
The effective payment for a mortgage goes up by 20-30% depending on tax bracket. House prices will fall by 20-30%. A bunch more mortgages will be underwater, a bunch more families will have trouble making their payment. So more folks will be out of their houses at about the same time their pension funds take a big hit because the mortgage-backed securities they bought go under. Things are bad enough now, and you want to make them worse?
There's lots of stuff in the (income) tax code that applies differently to different people? Well actually no, there's not. There's stuff that applies to different choices by different people. If you chose to buy muni-bonds, you don't pay tax, while if I chose to buy XOM bonds, I do pay tax.
Other than a poll or head tax (forbidden by the Constitution), what tax is not affected by personal choice?
Then we’ll need to eliminate the deductibility of interest paid by companies on debt. Otherwise it’s yet another way of favoring corporations over private individuals, and we’ll see housing aggregated and consolidated in the same way family farms have been displaced by factory farms, and family-owned companies swallowed up by larger companies with diversified ownership.
That 1099 is just designed to help show th einvestment bankers where to train their predatory guns next...that’s all....
A leap too far, I think.
If you buy an investment property, you get to deduct interest as a business expense. And that goes for loans for trucks or any other bit of gear needed to run your business.
Business deductions for interest does nothing to favor corporations over individuals. It simply states that interest is a normal cost of doing business, whether you are a corporation or an individual.
Shutting down business borrowing would shut down a lot of business activity. Or drive us to sharia finance.
Yes, getting rid of the mortgage deduction would drive folks more into rental housing. Which might be a good deal, as it makes it easier for folks to flee failing governments. A better deal would be to eliminate the income tax, which would restore a sane balance between renting and owning.
On your other note, the aggregation of family farms and businesses into large corporations isn't driven by the interest deduction, but by the death tax (estate tax). The next generation can't afford to keep the family business, even if they wanted to.
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