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NEWS: 9/07/10

9/07/10 – Obama to Propose Equipment Tax Write-Off:

Write-off on All Equipment Leases:

President Barack Obama will propose on Wednesday ( September 8, 2010) that businesses be allowed to write off all their new investments in plant and equipment through 2011, an administration official said. The plan hopes to increase job growth and cut business taxes by about $200 billion in the next two years.

Obama will unveil the proposal at a speech in Cleveland on Wednesday. The proposal is among several the president is to lay out in Cleveland. Administration officials said he will also propose making the business tax credits for research permanent, which the White House projects will cost $100 billion during the next 10 years and would be paid for by ending some corporate tax breaks.

Economic growth, which had been fueled by a record $814 billion government stimulus program, has slowed sharply, raising alarm in financial markets the economy was sliding back into recession.

The tax write-off would be retroactive to Sept. 8, the day the president announces it, the official said. The hope is that businesses would go ahead and make investments in plant and equipment without waiting for congressional approval of the proposal.

The official said as many as 1.5 million businesses could take advantage of the proposal.

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