Organization Tax Breaks Aplenty In New Legislation That Stings Property Owners

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While many individuals are thankful that the Bush tax cuts have been extended, there are parts of Obama’s new $ 858 billion tax bill that have average people wondering if they’ll ever catch a break. What Obama also did was give companies a gift, in the form of some helpful – and curious – regulations and tax breaks. And why shouldn’t property owners be upset, when they see their breaks go the way of tax credits for buying such essentials as race horses?

50 business regulations and tax breaks bad for property owners

Producing television programs, erecting windmills and exporting rum will all be getting tax breaks this year. The Obama tax bill hasn’t made several property owners fairly happy though. Unless deductions are itemized, property regulations and tax breaks are no longer available to any person which typically upsets many in the middle class that would prefer the automatic deduction. It might be easier for the middle class to stop fantasizing. None of it will occur unless things drastically change though. Obama’s brand new tax credit will only be good for those who make lots of cash already. Economic activity might do substantially better with the bill, if you ask the Obama administration’s opinion. Several say that this was just passed to stop fighting though, especially Clint Stretch of Deloitte Tax LLP.

“It gives it a lot of dignity to call it a ‘system,’ ” Stretch told the AP.

All about the tax breaks

  • Profitable companies can write off large capital expenditures all at once, instead of over time. Projected organization savings: $ 21 billion over 10 years
  • Foreign profit tax shield will save banks, insurers and financial firms. This will cost taxpayers lots of money. $ 9.2 billion will be paid
  • Regulations and tax breaks for research and development. This part of the bill can be pricey. It will cost $ 13.3 billion for everyone
  • $ 262 million could be saved through 2011 with Puerto Rico and the Virgin Islands. This is because a lower rum export tax will happen
  • Wind, solar and renewable energy tax credit will cost $ 3 billion through 2011
  • There can be a fifty percent tax credit. Railroad track maintenance costs can be what this is for. It’s expected to cost $ 331 million. This would be through 2011 though
  • Companies that donate to charity will receive $ 537 million in tax breaks through 2011
  • Non-sexually explicit Television production tax breaks. Write off $ 101 million through 2011

Citations

MSNBC

msnbc.msn.com/id/40811738/ns/business-us_business/

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