Wednesday, September 8, 2010
Tax break proposal from Obama
It looks like the Obama administration is taking aggressive measures to help the economy. Yesterday, President Obama announced that he would propose that companies be allowed to write off 100% of their new investment in plant and equipment through 2011. I personally see this a very positive step because besides consumer spending, business investments make up a huge portion of our GDP. This new tax break will stimulate firms to bolster their investments in capital, which in turns will lead to job creation and as a result mitigate the persistently high unemployment rates.
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The other question with this tax break is, did Obama place in stipulations on how the investments had to be spend, because if these companies are investing in foreign markets and then our government gives them tax relieve for those investments then it will only contribute to the deficit.
This is good news for entrepreneurs. This allows small businesses and companies to expand their businesses. In my article earlier this week it talked about the tax credits that obama is trying to push though. This will especially benefit competitiveness in large companies looking to expand. Surely it is a good step in the right direction to a brighter economy
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