Comments on: Barrack Obama and Change http://www.medirected.com/2008/11/barrack-obama-and-the-small-business-owner/ My Life Redirected Wed, 08 Sep 2010 15:26:24 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Daniel Andrews http://www.medirected.com/2008/11/barrack-obama-and-the-small-business-owner/comment-page-1/#comment-186 Daniel Andrews Sat, 15 Nov 2008 09:03:21 +0000 http://www.medirected.com/?p=187#comment-186 That's just the income tax part you are talking about. I am referring to capital gains taxes which apply to businesses as well as individuals. You currently have said you are holding because of losses now with the stock market, but if you sell those stocks in 2010 if the market rebounds to your buy in levels and you profit then you will pay about 15-20% on capital gains instead of 5% currently. I will not be to happy with any tax rate cut, tax credit, economic stimulus package at the moment. As they would only destabilize the current situation even more. That’s just the income tax part you are talking about. I am referring to capital gains taxes which apply to businesses as well as individuals. You currently have said you are holding because of losses now with the stock market, but if you sell those stocks in 2010 if the market rebounds to your buy in levels and you profit then you will pay about 15-20% on capital gains instead of 5% currently.

I will not be to happy with any tax rate cut, tax credit, economic stimulus package at the moment. As they would only destabilize the current situation even more.

]]> By: mike http://www.medirected.com/2008/11/barrack-obama-and-the-small-business-owner/comment-page-1/#comment-185 mike Sat, 15 Nov 2008 08:15:54 +0000 http://www.medirected.com/?p=187#comment-185 Good points but the Obama tax increases only apply to less than 5% of small businesses. You have to have bring in over $250k for the year (which would mean a company valuation of about 1 mil) for that to kick in. If you're under $250k you get a much bigger cut than McCain's plan would have brought. Since my small business falls in that category I'd say it's safe to say that Obama's plan would be better for my business. When the business gets to the $250+k level I will gladly pay more taxes. In the end though, presidents aren't really the deciding factor on something like this. But with an overwhelming Democratic majority now, I'd imagine he won't have much of a problem pushing his agendas through. Good points but the Obama tax increases only apply to less than 5% of small businesses. You have to have bring in over $250k for the year (which would mean a company valuation of about 1 mil) for that to kick in. If you’re under $250k you get a much bigger cut than McCain’s plan would have brought. Since my small business falls in that category I’d say it’s safe to say that Obama’s plan would be better for my business. When the business gets to the $250+k level I will gladly pay more taxes.

In the end though, presidents aren’t really the deciding factor on something like this. But with an overwhelming Democratic majority now, I’d imagine he won’t have much of a problem pushing his agendas through.

]]> By: Daniel Andrews http://www.medirected.com/2008/11/barrack-obama-and-the-small-business-owner/comment-page-1/#comment-184 Daniel Andrews Sat, 15 Nov 2008 06:33:18 +0000 http://www.medirected.com/?p=187#comment-184 I don't know about Obama being better for small business owners, his proposed raise of capital gains tax rates would hurt small businesses more than large businesses, just because of sheer volume of capital that can raised by a large corporation. Therefore your business is better served living on credit debts than positive balance sheets with if you have high capital gains in a small business. The past 11 years since the 1997 Taxpayer Relief Act has seen a sharp rise in small business growth. Lower capital gains taxes are better for small business creation and growth, while at the same time low capital gains taxes are bad for Large Businesses if their existing tax rate is small and interest rates are low. Large businesses borrow to grow and buy back stocks as collateral and to raise stock prices during such a period when their balance sheets are reflecting losses from growth and this is called stock market inflation. Obama's policies are likely to stymie small business creation and growth, but they will ultimately stabilize large corporations if the interest rates are raised, less borrowing, less stock buy back campaigns lead to less inflation of stock values, less growth, but a stabilized economy. During such a time small business owners looking to store capital for investment will be forced to put money into savings accounts, t-bills, and government bonds thus having to only pay tax on interest. It's not like McCain had a plan either and its unlikely the house of representatives or senate is likely to have a worthwhile plan. Just look at the bailout package that included bailing out movie producers and rum producers as well. I don’t know about Obama being better for small business owners, his proposed raise of capital gains tax rates would hurt small businesses more than large businesses, just because of sheer volume of capital that can raised by a large corporation. Therefore your business is better served living on credit debts than positive balance sheets with if you have high capital gains in a small business. The past 11 years since the 1997 Taxpayer Relief Act has seen a sharp rise in small business growth. Lower capital gains taxes are better for small business creation and growth, while at the same time low capital gains taxes are bad for Large Businesses if their existing tax rate is small and interest rates are low. Large businesses borrow to grow and buy back stocks as collateral and to raise stock prices during such a period when their balance sheets are reflecting losses from growth and this is called stock market inflation. Obama’s policies are likely to stymie small business creation and growth, but they will ultimately stabilize large corporations if the interest rates are raised, less borrowing, less stock buy back campaigns lead to less inflation of stock values, less growth, but a stabilized economy. During such a time small business owners looking to store capital for investment will be forced to put money into savings accounts, t-bills, and government bonds thus having to only pay tax on interest.

It’s not like McCain had a plan either and its unlikely the house of representatives or senate is likely to have a worthwhile plan. Just look at the bailout package that included bailing out movie producers and rum producers as well.

]]> By: Barrack Obama and the Small Business Owner http://www.medirected.com/2008/11/barrack-obama-and-the-small-business-owner/comment-page-1/#comment-181 Barrack Obama and the Small Business Owner Sun, 09 Nov 2008 12:57:09 +0000 http://www.medirected.com/?p=187#comment-181 [...] Read the rest of this great post here [...] [...] Read the rest of this great post here [...]

]]> By: Barrack Obama and the Small Business Owner | definedebt.com http://www.medirected.com/2008/11/barrack-obama-and-the-small-business-owner/comment-page-1/#comment-180 Barrack Obama and the Small Business Owner | definedebt.com Sat, 08 Nov 2008 20:39:35 +0000 http://www.medirected.com/?p=187#comment-180 [...] See more [...] [...] See more [...]

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