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Senior Contributor

Re: still screwing with marketing and sound planning

Do you feel attacked Hobby? I don't blame you for wanting advanced depreciation. What i blame you for is not seeing the injustice in such a proposition. Hobby buys a new $50K crew cab for his business and personal pleasure and expenses it in one year. He justifizes it because it creates jobs.

 

Joe six pack buys  $25K pickup for driving to work and personal pleasure and he can't deduct one dime in depreciation. Driving to work and back is every bit as much a business expense as is driving to the coop for feed. It's just that it is personal business instead of business business. But in either case they should both be justified by the job creation theory.

 

The fact is that businesses have too much political clout. Government can give this tax incentive to farmers to win approval for such legislation for the advancement of business. If it benefits those wall street companies it would have little support but include the farmers and it's and easy pass. JUst like the estate tax injuring countless farmers when in fact very few farmers pay estate taxes. Thus again winning political support for the things that benefit wall street.

 

BTW I am still an active farmer and I qualify for the 179 just like you do. I can build bins or bury more tile or even buy farm equipment should I choose. I choose not to because I am focused on earnings rather that tax avoidance.

 

Somebody has to pay taxes and if it isn't folks like you and me, who will pay it?

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Veteran Advisor

Re: still screwing with marketing and sound planning

I'm more worried about making my payments
On an item of equipment, rather than the
Deductable anymore....
But if you are dealing with "antiques"
Not much depredations left.

Oh shaggy, might look into some of the
Programs for "biomass energy" for
Those investments.
as for the "accessories " I guess there are
Rules that you can not "expose the gender of
Your vehicle". People have been given
Tickets for it.
As if the troopers don't have something better to do.
I guess it gives new meaning to "get you
By the ****"
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Advisor

Re: still screwing with marketing and sound planning

You libs sure have a gift for putting evil sounding words on a subject. Tax management is not tax avoidance. Is it fair for a high wage earner to be able to claim a higher mortgage interest deduction than a lower income earner?

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Senior Advisor

Re: still screwing with marketing and sound planning

I'm not a 'LIBERAL' but I'll take a stab at this. Tax management IS tax avoidance. That's why effective tax rates for the wealthy are so low compared to the tax brackets they would be in otherwise. And why a flat tax w/o loopholes would never be approved. And why the middle class pays a higher rate in comparison with nonwage income.

 

Like it or not, tax policies affect social/political issues when there is extremism in the economic sector. Always has and always will. It's also a paradox that those times we (older) claim to look back on more fondly are times with much different tax and economic policies than we have now. It's really no mystery.

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Advisor

Re: still screwing with marketing and sound planning

You're wrong again. Taxes are an expense ultimately paid by the end consumer.
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Senior Contributor

Re: still screwing with marketing and sound planning

I think Grassley is more worried about John Deere than any avg. Farmer!!!!   John

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Senior Contributor

Re: still screwing with marketing and sound planning

That being the case why would any business or corporations oppose any tax increase? What the hey, the customer pays for it anyway.

 

Or why would they oppose pay increases for their labor force. I mean the customer always pays for it , right?

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Senior Advisor

Re: still screwing with marketing and sound planning

That statement would generally be wrong, although that's how the Europeans tend to set it up with a value added tax, which means every transaction contributes to tax revenue. 

 

However, as a farmer in Washington State I pay no sales tax due to a producer exemption. I pay no income tax because the state has no socialist income tax like Idaho next door. In Idaho I pay NO property tax on equipment because of an agricultural exemption - AND no sales tax.

 

On the federal level I can avoid peaks in good years through Sect 179. I can also 'Income Average' on the federal form (no other tax payers get that freebie) to avoid the same higher tax brackets. Idaho state income tax uses the federal tax form as their basis.

 

That's just a start. Nobody makes up for those tax advantages. Tax revenue does not have to be equal to approved spending.

 

There's always a 'good' reason for any specific tax regulation. The middle class wage earner - the few that are left - don't get as many useful tax dodges they can use - pure and simple.

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Advisor

Re: still screwing with marketing and sound planning

And it all boils down to the best and cheapest food in the world. What more can anyone ask for? Life isn't fair so get used to it.
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Highlighted
Veteran Contributor

Re: still screwing with marketing and sound planning

And the biggest screwing around of them all the Adjusted Gross Income limitation for governent welfare at $900,000. If reform was serious it would have been $250,000 Gross!!

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