New tax law packed with obscure business tax cuts

[somone]

http://www.usatoday.com/news/washington/2010-12-24-tax-bill_N.htm

New tax law packed with obscure business tax cuts

WASHINGTON (AP) — The massive new tax bill signed into law by President Barack Obama is filled with all kinds of holiday stocking stuffers for businesses: tax breaks for producing TV shows, grants for putting up windmills, rum subsidies for Puerto Rico and the Virgin Islands. There is even a tax break for people who buy race horses. Millions of homeowners, however, might feel like they got a lump of coal. Homeowners who don't itemize their deductions will lose a tax break for paying local property taxes...

Most of the business tax breaks — about 50 in all — are part of a package that expires each year, creating uncertainty for tax planners but lots of business for lobbyists. Many of these tax breaks have been around for years but expired at the end of 2009 because lawmakers couldn't agree how to pay for them. The new law extends most of them through 2011, some through 2012. They will be paid for with borrowed money... There is a generous tax break for banks and insurance companies that invest overseas, a tax credit for railroad track maintenance, more generous write-offs for upgrading motorsport race tracks... Among the provisions in the new law:

- A tax break that allows profitable companies to write off large capital expenditures immediately — rather than over time — giving some companies huge tax shelters. The tax break, known as bonus depreciation, benefits automakers, utilities, heavy equipment makers like Caterpillar Inc., and John Deere, air freight companies like Fedex Corp., and wireless companies like Verizon and AT&T. It will save companies nearly $21 billion over the next decade.

- An exemption that allows banks, insurance companies and other financial firms to shield foreign profits from being taxed by the U.S. through 2011. Cost: $9.2 billion. The tax break is important to major multinational banks and financial firms, such as Citigroup, Bank of America, Goldman Sachs and Morgan Stanley, and to the financing operations of other international companies...

[Hannah Bell]

1. "a tax break for people who buy race horses." that's a very interesting one,

as the racing industry is controlled by some very old money.

what a fraud.

[saigon68]

2. rum subsidies for Puerto Rico and the Virgin Islands.

Out Fucking Standing

[lfairban]

3. I believe . . .

. . . that's for making it, not drinking it.

[lunatica]

4. Aren't Puerto Rico and the Virgin Islands American or some sort of US affiliation?

If so then why not subsidize their rum?

[Hannah Bell]

6. do corps hq'd there pay taxes at regular rates? which are pitiful to begin with?

[kath]

5. Quell surprise.

Not.

$9.2 BILLION to allow financial corps to shield foreign profits -- lovely. More tax breaks for banksters. :banghead: :banghead: :banghead"