Effectiveness of Tax Breaks Is Questioned

[Judi Lynn]

Effectiveness of Tax Breaks Is Questioned

By EDMUND L. ANDREWS
Published: October 6, 2005
WASHINGTON, Oct. 5 - Proposals to use tax breaks for rebuilding areas devastated by the recent hurricanes may provide only limited help to people and businesses that suffered actual losses, according to many economists.

The biggest beneficiaries could turn out to be companies from outside the devastated areas that have big federal contracts to carry out cleanup and reconstruction work.

President Bush has proposed a plan to turn much of the Gulf Coast into a giant "opportunity zone" in which businesses would receive special tax write-offs for new equipment and construction.

In Congress, some lawmakers are pushing more ambitious plans for the damaged areas that would eliminate taxes on capital gains and inheritance taxes and give companies a tax credit for each worker in the area they hire.
(snip/...)

http://www.nytimes.com/2005/10/06/politics/06tax.html
(Free registration required)

[LynnTheDem]

1. The "biggest beneficiaries" will be BUSH CRONIES and you can take that

to the bank.

[Why Syzygy]

2. Okay.

Just assume Bushco is going to screw this up. That's a given.

A friend of mine just went into a devastated area to help rebuild. The company he is working for is required to post a $2 MILLION dollar insurance bond with FEMA. Work isn't free, ya know.

[Lasher]

3. Well, they're certainly consistent

"...eliminate taxes on capital gains and inheritance taxes..."

They're trying to use this to push even their Paris Hilton tax cut? Gotta make sure they take good care of the 1,000 or so wealthiest people in the area!

Enough with the supply side crap already. How much more destruction must they wreak on our economy before they admit the trickle-down theory was never anything more than an attempt to justify stealing from the poor and giving to the rich?

[Ernesto]

4. Kleptocracy

Think about it..... it'll creep up on ya.

[SoCalDem]

5. What a JOKE.. Subsidizing TAX-PAYING businesses is what's needed

not eliminating taxes for the "already wealthy" to start up businesses..

This is the same rationale that is used for the big-box stores that move into communities and KILL the small businesses..

The BigBoxes get "tax holidays"..sometimes for YEARS..in exchange for "all those jobs".. They say that the additional taxes paid by all those employees more than makes up for it..(classy, eh?)..

Then just as the "holiday" expires, the Big Boxes threaten to leave if it's not extended, or another "special deal" is not made..

It's extortion..

[CountAllVotes]

6. kick !!!!!

:kick: