Let's remove 8 zeros from the Federal budget and pretend it's a household budget:
Annual family income: $ 21,700
Money the family spent: 38,200
New debt on the credit card: 16,500
Outstanding balance on the credit card: 142,710
Total "deep" budget cuts: 385
When will this family get their budget balanced?
Correct - NEVER!
Tuesday, August 30, 2011
Monday, August 01, 2011
Those Damn Loopholes
A loophole is an ambiguity in a system, such as a law or security, which can be used to circumvent or otherwise avoid the intent, implied or explicitly stated, of the system.
How many of you lemmings are marching in lockstep with the Executive Branch and extolling the loophole that allows corporations to buy corporate jets and avoid some tax?
There is no loophole here. Just more class warfare from the left.
Here is the real story. Before the Republicans took control of the House when the Democrats had control of both the Executive and Legislative Branches, they decided on a stimulus bill. Part of the bill would allow businesses to deduct either 100% or 50% of the entire cost of a capital asset all in one year.
Normally, machinery, equipment and fixtures purchased by business must be depreciated over a number of year, generally 3 to 39 years depending on the type of asset. An airplane is a 7-year asset. That means that only one seventh of the cost can be deducted from business income in a year. (This is actually a simplification.) The business has to come up with 100% of the cash to buy the airplane but can only deduct one seventh each year.
So, your Democrat buddies decided to allow businesses to deduct 100% all in one year so as to stimulate businesses to buy such things and cause the other businesses that make the things to have to hire more people.
Then those bad, mean big corporations went out and bought more airplanes. The businesses making airplanes had to hire more people. Gee – the stimulus worked!
There was no circumventing a law here. No loophole. They were doing exactly what the lawmakers wanted – buying more stuff to cause more hiring of workers to make the stuff.
Now for the flip flop. The Democrats no longer think this is a good idea. Since they are now running for re-election they want their constituents to think they are against big business. So, let’s remove the incentive and then those airplane manufacturing businesses will have to lay off the extra workers. But wait – they say they need to concentrate on creating jobs. Oh yea, that’s just a campaign slogan. They don’t really mean it. And besides, government doesn’t create jobs, only free enterprise creates jobs.
How many of you lemmings are marching in lockstep with the Executive Branch and extolling the loophole that allows corporations to buy corporate jets and avoid some tax?
There is no loophole here. Just more class warfare from the left.
Here is the real story. Before the Republicans took control of the House when the Democrats had control of both the Executive and Legislative Branches, they decided on a stimulus bill. Part of the bill would allow businesses to deduct either 100% or 50% of the entire cost of a capital asset all in one year.
Normally, machinery, equipment and fixtures purchased by business must be depreciated over a number of year, generally 3 to 39 years depending on the type of asset. An airplane is a 7-year asset. That means that only one seventh of the cost can be deducted from business income in a year. (This is actually a simplification.) The business has to come up with 100% of the cash to buy the airplane but can only deduct one seventh each year.
So, your Democrat buddies decided to allow businesses to deduct 100% all in one year so as to stimulate businesses to buy such things and cause the other businesses that make the things to have to hire more people.
Then those bad, mean big corporations went out and bought more airplanes. The businesses making airplanes had to hire more people. Gee – the stimulus worked!
There was no circumventing a law here. No loophole. They were doing exactly what the lawmakers wanted – buying more stuff to cause more hiring of workers to make the stuff.
Now for the flip flop. The Democrats no longer think this is a good idea. Since they are now running for re-election they want their constituents to think they are against big business. So, let’s remove the incentive and then those airplane manufacturing businesses will have to lay off the extra workers. But wait – they say they need to concentrate on creating jobs. Oh yea, that’s just a campaign slogan. They don’t really mean it. And besides, government doesn’t create jobs, only free enterprise creates jobs.
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