Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Lane3 who wrote (90301)	10/16/2008 11:34:44 AM
From: Steve Lokness	Respond to of 541791

Lane3; invest to expand the business Every dollar invested in the business is a charge against profit and lessons taxes. The tax laws today are so favorable to small business as to be almost a joke. Joe the Plumber goes out and buys a big new F350 truck and deducts it all from his business. Joe the plumber takes a vacation to Mexico or Hawaii and writes it off as a business expense because he attends a lecture on plumbing. I could go on and on but you get the idea. $250,000 profit doesn't include any of these bennies - it really is a joke and that Joe the Plumber complains about paying more taxes on amounts over $250,000 shows him for what he is. steve

To: Lane3 who wrote (90301)	10/16/2008 11:48:32 AM
From: Rambi	Read Replies (1) \| Respond to of 541791

Why is expanding the business an aftertax expense? Don't the expenses get deducted later- say a new truck, an new employee, new equipment? I remember a friend buying a very nice SUV and getting a huge writeoff because it met the large size requirement for a business vehicle if you needed one. He was a realtor-said he needed it to go off road. He no more needed that large car than I did, but the tax break was huge. NO point to that, except that I think there are a lot of breaks out there for businesses that encourage them. Once you hit 250 profit, you're doing pretty well. ALthough if it's a partnership... would they have paid themselves a salary before that profit?

To: Lane3 who wrote (90301)	10/16/2008 2:11:38 PM
From: Cogito	Respond to of 541791

>>The issue, as I understand it, is the cost of investing in the business. You have to buy the business and invest to expand the business. That is done with after tax money.<< Karen - Well, if Joe isn't making more than 200k now, he won't have to worry about having less money to invest under Obama's plan. If he gets to the point where he IS making more than 200k, then he'll still have more money to invest, even though he'll be paying a higher marginal rate on the income above the 200k. Of course, under McCain's plan, he'd have somewhat more money in that situation than he would under Obama's. But what else would he have to be dealing with? Taxes aren't everything. - Allen