In a vote of 258-160, the House on Friday approved making a temporary corporate tax break permanent, making it easier for companies to invest in equipment, the Washington Examiner reports. While the bill would allow companies to write-off equipment-related expenses much more easily, the White House has indicated even before the vote took place that it will veto the bill, as the resulting effects of the tax break would add $287 billion dollars to the deficit in the next decade. Sponsored by Ohio Republican Rep. Pat Tiberi, what the tax break accomplishes is that it allows businesses to write-off expenses that would normally be spread out over several years. This bonus depreciation tax break expired at the beginning year, in addition to around 50 other tax breaks.
According to the White House, bonus depreciation tax break, originally brought on in 2008, “was never intended to be a permanent corporate giveaway.” The Senate and House are working on completely different tracks. The Senate is working on a package that would extend temporary tax breaks through 2015, whereas the House is pushing to make a variety of tax breaks permanent……To Read More….
My Take – Some might believe I would be all in favor of this “permanent” tax break is a great idea - and it is on the surface - but this highlights the real problem with our progressive tax system. The government is deciding winners and losers. Who do you really think this break is for? Make no mistake about it this will benefit all businesses, but not like the really big companies. The government is now deciding when you can buy equipment based on when it can be deducted, and this is part of the problem, they shouldn’t be deciding anything about your business except for illegal activities. Unfortunately, virtually everything you do can be illegal according to the IRS.
This is why this system needs dumped in favor of a national sales tax with no loopholes, no breaks, no deductions and no corruption. Everyone pays at the cash register, and if everyone is paying everyone has skin in the game. This will virtually eliminate the IRS, which is a massively expensive department, saving tens of billions of dollars, not to mention eliminating the ability to abuse any administrations enemies.
The argument against a national sales tax is that the poor will have to pay more of their needed income versus the rich which will pay miniscule parts of their income. True on the surface, but the rich turn around an buy half a million dollar yachts, million dollar homes, expensive clothes, go to fancy restaurants, join country clubs, etc. All providing jobs! Let’s try and remember the last time a street person wrote someone a paycheck!