Cantor Scores First With Jobs Plan

[JamesL]

House GOP announces jobs plan focused on cutting regs and taxes
By Erik Wasson - 08/29/11 12:49 PM ET

House Majority Leader Eric Cantor (R-Va.) on Monday laid out an ambitious anti-tax and anti-regulations agenda for the fall.

In a memo to rank-and-file Republicans, Cantor said the House will target 10 major regulations for elimination, and will also seek to enact one major tax cut for businesses.

Republicans are offering the agenda as a contrast to President Obama’s jobs plan, which is set for formal announcement next week and is expected to include stimulus spending.

“I think the administration has … already demonstrated that it is not interested in focusing on private sector growth,” Cantor said after announcing the plan on Fox News. “What our list demonstrates is: Washington now has gotten in the way, and we’ve got to make it easier, finally, for small business people to grow.”

Cantor’s proposals will face an uphill battle in becoming law, but could make their way into a package produced by the supercommittee of 12 lawmakers charged with recommending $1.5 trillion in deficit cuts by late November. Democrats want that package to focus on economic stimulus to create jobs.

The more far-reaching tax proposal outlined in Cantor’s memo would allow small business owners to deduct 20 percent of their income from their taxes.

This proposal is being offered as a contrast to the Obama administration effort to raise taxes on individuals making more than $200,000 per year, and families with annual income higher than $250,000. Many small businesses file taxes as individuals.

One key Democrat labeled Cantor’s agenda as a distraction meant to deflect attention from the fact that the GOP is blocking proposals to stimulate the economy, including through the extension of a payroll tax cut.

Sen. Chuck Schumer (D-N.Y.) said the agenda was “intended only to provide cover for blocking the kind of pro-growth proposals needed to make a difference.”

“House Republicans are struggling to play catch up on jobs after Fed Chairman [Ben] Bernanke called for more aggressive fiscal policies than they have supported so far,” Schumer said. “But when they even stall common-sense measures like continuing the payroll tax cut for the middle class, it’s clear Republicans are still putting politics ahead of our economic recovery.”

The 10 regulations targeted in the memo were identified by committee chairmen as the most harmful to the economy. The majority are issued by the Environmental Protection Agency, but labor and healthcare rules are also targeted.

http://thehill.com/blogs/on-the-mon...nces-jobs-plan-focused-on-cuttings-regs-taxes

 

[Free Thinker]

Quote from JamesL:

The more far-reaching tax proposal outlined in Cantor’s memo would allow small business owners to deduct 20 percent of their income from their taxes.

This proposal is being offered as a contrast to the Obama administration effort to raise taxes on individuals making more than $200,000 per year, and families with annual income higher than $250,000. Many small businesses file taxes as individuals.

that will do nothing to stimulate demand and create jobs. small business owners already have the most generous tax treatment of anyone.
as a small business owner you are able to deduct and depreciate and shelter so much of your income its almost like a gift. if you show 200k income on your tax returns it means that you actually made far more than that. do people showing 200k + of income after already deducting and sheltering in many different ways need a tax cut?

 

[Ricter]

I tend to agree, FT. Right now, if you can demonstrate realistic sales or projected sales, they're knocking down your door to loan you money. The consumer (70% of the economy) needs money to spend, not business. Giving me more money is not going to increase sales (with the exception of B2B), all my marketing notwithstanding.

 

[Lucrum]

Quote from Free Thinker:

that will do nothing to stimulate demand and create jobs. small business owners already have the most generous tax treatment of anyone.
as a small business owner you are able to deduct and depreciate and shelter so much of your income its almost like a gift. if you show 200k income on your tax returns it means that you actually made far more than that. do people showing 200k + of income after already deducting and sheltering in many different ways need a tax cut?

Shouldn't you be busy burning some Christians at the stake?

 

[jem]

what you call shelter, business people call rent, marketing and payroll.

 

[rc8222]

A do nothing job plan is anything Obama comes up with. If this douche bag cared about job creation, he would have made it a top priority when taking office. Instead, he was hell bent on passing healthcare legislation that is so unpopular, that no Doucheocrats will ever campaign on it in 2012. (Just like none of them did in 2010). Obama is just another example of an unqualified minority in a high level Government position.

 

[Free Thinker]

Quote from jem:

what you call shelter, business people call rent, marketing and payroll.

dont forget writing off a new vehicle in 5 years writing off a home office with all of the equipment in it. writing of confrences/vacations and travel that always happen to be in nice places. writing off a nice retirement plan. there are so many perks small business owners get that employees cant get. like i said if you show 200k taxable income you made a lot more than that.
how about depreciating assets like real estate that actually increase in value. what a gift that is.

 

[Ricter]

Consider the FDA's new powers for a moment:

"New FDA Fees Will Impose Tax-Like Burden on Food Importers and Manufacturers

(PRWeb)

During a time of worldwide recession, U.S. food importers, most of them small businesses, will soon find themselves unexpectedly impacted by additional costs caused by FDA’s new fees for “re-examining” imported foods. According to Benjamin England at FDAImports.com, starting October 1, 2011, FDA will charge food importers $224 per hour to “re-examine” imported food shipments suspected of a food safety violation– potentially costing importers thousands of dollars per entry. As per its Federal Register notice, this new fee will create a tax-like burden on food importers, most of whom are small businesses, according to FDA.

American consumers will certainly feel the effect of these new fees as well. Food importing and distribution has a small price margin, especially compared to other commodities, such as cosmetics or dietary supplements. Thus, the importers are likely to pass these new expenses onto their purchaser, who will ultimately pass it on to consumers. According to Benjamin L. England, Founder and CEO of FDAImports.com, “these fees amount to a hidden food tax on American consumers. This is no small thing as roughly 20% of the U.S. food supply is imported, including 70% of seafood and 35% of fresh produce.”

According to the Food Safety Modernization Act, FDA can adjust the imported food re-examination fees, but it must issue regulations to do so. FDA in its August 1 Federal Register notice requested comments on the issue whether to grant waivers or fee reductions to small businesses. FDA opened the comment period until October 31 – thirty days after the new examination fees go into effect.

In the meantime, according to FDA, small businesses can expect to receive invoices from FDA starting on October 1st for the full fee amount. An importer can attempt to appeal the fee and plead for a waiver or reduction – however, no mechanism exists for that appeal. According to Mr. England, “the appeal will likely fall on deaf ears considering FDA will have done the work already, created the invoice and mailed it to the importer or foreign manufacturer, and will be expecting (even salivating over) collection of the fee.”

Mr. England is currently organizing a coalition of food manufacturers and importers to oppose these fees and to speak as a unified voice against the new fee tax. Mr. England reminds small businesses that, “making yourself heard on the impact of these fees is critical and time sensitive.” For more on the steps small business can take to be heard on this issue, visit the FDAImports.com coalition and comments page."

So, what's the right thing to do here? Relax food safety? Pay for inspections with an across the board tax hike (everyone eats, after all), or keep the burden on importers?

 

[Ricter]

Quote from Free Thinker:

dont forget writing off a new vehicle in 5 years writing off a home office with all of the equipment in it. writing of confrences/vacations and travel that always happen to be in nice places. writing off a nice retirement plan. there are so many perks small business owners get that employees cant get. like i said if you show 200k taxable income you made a lot more than that.
how about depreciating assets like real estate that actually increase in value. what a gift that is.

And, this just happened, deducting vehicle repairs while on a business trip, woohoo.

 

[bone]

Quote from Free Thinker:

that will do nothing to stimulate demand and create jobs. small business owners already have the most generous tax treatment of anyone.
as a small business owner you are able to deduct and depreciate and shelter so much of your income its almost like a gift. if you show 200k income on your tax returns it means that you actually made far more than that. do people showing 200k + of income after already deducting and sheltering in many different ways need a tax cut?

Being in that category, and flowing through 1256 trading income and consulting income from my LLC's directly to my personal income tax return, I cannot deduct shit without AMT kicking in terms of my personal taxes. In fact, I cannot deduct much in terms of anything in that tax bracket. I guess with my gross non-adjusted income, I need more expenses - other than an office and ECN/computing infrastructure and insurance there are none to speak of. Maybe Pee Drinker hasn't done taxes from business income in several years, because my allowable deductions have really diminished the past four or five years - using the same CPA.

The point about the Obama administration not being interested in creating private sector jobs is dead-nuts spot on.