Dems poised to move $33B in business tax credits to stimulate jobs

[babylonsister]

Dems poised to move $33B in business tax credits from stimulus
By Walter Alarkon and Silla Brush - 11/05/09 06:00 AM ET


Democrats anxious about high unemployment have shifted gears and are poised to expand a stimulus provision that would quickly put $33 billion in the pockets of businesses.

The Senate on Wednesday approved a tax break that allows firms to carry back losses to get refunds on taxes paid over the past five years, and the House is expected to follow. The tax provision is packaged with a bill extending unemployment benefits.

Business groups had pushed for the five-year carry-back provision during the debate over the 2008 stimulus bill signed by President George W. Bush, but were blocked by House Democrats who argued it would have helped businesses more than individuals.

Now, with unemployment expected to hit 10 percent this fall and possibly as early as Friday’s jobs report, Democrats have embraced the provision as a way to spark employment ahead of next year’s elections.

A five-year carry-back “is one of the very few ways in the tax system you can actually put cash into the hands of business very quickly,” said Clint Stretch, director of tax policy at Deloitte & Touche.

more...
http://thehill.com/homenews/senate/66429-democrats-poised-to-move-33b-business-tax-provision

[Hello_Kitty]

1. Is this carryback provision tied to creating jobs?

Because what's the point of giving businesses tax cuts if they don't end up creating any jobs?

[robinlynne]

3. thank-you.

[babylonsister]

4. That's what Congress is hoping happens. nt

[Hello_Kitty]

5. Hoping isn't good enough.

Businesses have been doing this "job creation" song-and-dance for years to get tax cuts, both at the federal and local level. Corporations literally pit states and cities against each other to see who will offer them the biggest tax cuts to locate there or they threaten to pull out of an area if they don't get breaks. As a result, several states are bankrupt or on the brink of bankruptcy. They get everything they want and are rarely, if ever, held accountable for the job creation they promise. More often than not, they get tax breaks and then shed jobs, according to Greg LeRoy, author of The Great American Jobs Scam

I'm tired of this trickle down horseshit. Corporations have gotten enough breaks and most small businesses don't pay income taxes at all because they write everything off.

[bluestateguy]

6. I agree

If their is no mandate that they create jobs, they will just pocket the money.

The original stimulus bill had a tax credit ($3000?) for businesses that explicitly created jobs, but the paper pushing, plodding, clumsy, Congress Clowns scotched that idea.

[MUAD_DIB]

7. Or creating jobs overseas.

[enid602]

2. jobs

Why not just make several of the already-available tax loopholes for business dependent upon their ability to generate new jobs?

[optimator]

8. more trickle down voodoo economics from dems

disgusting

[tonysam]

9. This should have been done the day Obama took office. n/t