View Full Version : Dems Pass Small Business Tax Cuts

Gayle in MD
09-14-2010, 09:10 PM
Bravo! Although Republicans tried to block tax cuts for small businesses, IN THE MIDDLE OF A RECESSION, Democratics managed to pass them with just two retiring Republicans signing on.

Although Boehner promised to vote for extending the Bush tax cuts, on Face The Nation, even if the President does not extend them for those making over a quarter of a million dollars, aka the top two percent, Republicans, through Sen. McConnell are backing off that promise, indicating they won't extend tax cuts for the bottom 98%, unless they are also extended for the top two percent, including many multi-millionaires and multi- billioniares dollar earners, who do not spend those cuts on jobs.

That top two percent tax break adds over seven hundred million dollars to the deficit.

Those Republicans.... such deficit hawks! /forums/images/%%GRAEMLIN_URL%%/smirk.gif /forums/images/%%GRAEMLIN_URL%%/laugh.gif

The non partisan joint tax committee, said that only two percent, fall into the category of job producers, where they would be affected at all, by ending the Bush cuts for the top two percent.

Ampong those 2% include big lobbyists, hedge funders, lawyers, specialty doctors, and many others, with low and unchanging numbers of employees, very few add any jobs to the economy.

Republicans actually filibustered the small business lending bill.

Gee, they're aren't for <span style='font-size: 14pt'>only</span> the big cats, are they?

/forums/images/%%GRAEMLIN_URL%%/smirk.gif /forums/images/%%GRAEMLIN_URL%%/grin.gif /forums/images/%%GRAEMLIN_URL%%/laugh.gif

09-14-2010, 09:58 PM
There are quite a few Dems who also are pushing Obama to extend the tax cuts to everyone.

In the very fragile economic situation we are in right now (Prevailing conditions), tax increases could very well push us deeper into a recession.


09-15-2010, 03:38 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Gayle in MD</div><div class="ubbcode-body">IN THE MIDDLE OF A RECESSION

/forums/images/%%GRAEMLIN_URL%%/smirk.gif /forums/images/%%GRAEMLIN_URL%%/grin.gif /forums/images/%%GRAEMLIN_URL%%/laugh.gif </div></div>

Yet in a concurrent thread you are trumpeting how the recession is ending ... here we are smack in the middle of it.

Tell the truth ... you really don't even understand any of these issues beyond cut and paste and, lick the spoon and regurgitate.


09-15-2010, 06:31 AM
It would appear that the Dems are deeply divided on the issue of increasing taxes on anyone right now. Of course, we know they want to raise taxes, but in this economy, when they are facing big problems in the upcoming mid terms, they know it is politically not a smart thing to do.



09-16-2010, 03:27 AM
This is simply another example of doublethink.

Only the truly hypnotized can claim that we are in the middle of a recession and that the recession is over and truly believe both statements to be true.


09-17-2010, 02:17 PM
Hey bravo and kudos to them for doing that. It really is a good thing and will be a help to small businesses.

Now if only the stimulus had worked worth a crap, such action wouldn't be so necessary.

But in this case, credit where credit is due. Good job on getting that passed.


09-17-2010, 04:05 PM
Haven't you heard?

Imam Biden has informed the cult members that the stimulus was never intended to create jobs.


09-25-2010, 06:58 AM
Another ill conceived Obama program destined for failure. When will these clowns learn to change directions when their programs continue to result in massive failure? Probably never, after all what does a "community activist" know about real world economics? Nothing! J

"President Barack Obama's $30 billion small community business lending program faces one big challenge: many of the community banks and businesses it's supposed to help don't want it.

The lending program is part of a bill that passed the House of Representatives on Thursday and now awaits the president's signature. The legislation contains a mix of tax cuts and credits aimed at helping small businesses. The centerpiece of the bill is an effort to make billions of dollars available to community banks for loans to small businesses.

Bank executives say their customers don't want loans, even at low interest rates, because the sluggish economy has chilled expansion plans. Some say the federal money isn't worth it because they fear it will come with too much regulatory oversight.

"We have taken a strategic decision not to have our primary regulator, the government, also be a partner in our bank," said William Chase Jr., CEO of Triumph Bank in Memphis.

Chase said the bank already has enough capital to meet the paltry demand for loans. "Our business customers are mired in uncertainty and are reluctant to invest in their businesses," Chase said.

The $30 billion fund will be run by the Treasury Department, and money will be awarded to banks deemed strong by regulators. Banks that have less than $10 billion in assets are eligible.

"It will provide incentives to invest and create jobs for 4 million small businesses," Obama said at a news conference Sept. 10. "It will more than double the amount some small business owners can borrow to grow their companies."

Obama has to bridge the gulf between money that's available and the needs of businesses. The NFIB survey found businesses don't intend to borrow until they have more customers.

Community banks will have to pay an annual dividend of 5 percent to the U.S. Treasury. However, when banks increase their lending to small businesses, their dividend rate declines on a sliding scale. So, if a bank increases its small-business lending portfolio by 2.5 percent, the dividend payment goes down to 4 percent and so on, said Paul Merski, chief economist at the Independent Community Bankers of America, the lobbying group for small banks.

The dividend payment increases to 7 percent if banks don't lend to small businesses.

Noah Wilcox, CEO of Grand Rapids State Bank, with two branches in Minnesota, said he already has more capital at his $250 million bank than he can lend out.

"Many of our clients, business owners, put their projects on ice in 2008 because their job number one is to see their company through to the other side of this economic crisis," said Wilcox."

09-25-2010, 07:30 AM
I dont think they understand how business works.

Gayle in MD
09-25-2010, 07:45 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: sack316</div><div class="ubbcode-body">Hey bravo and kudos to them for doing that. It really is a good thing and will be a help to small businesses.

Now if only the stimulus had worked worth a crap, such action wouldn't be so necessary.

But in this case, credit where credit is due. Good job on getting that passed.

Sack </div></div>

I agree, and also, a little birdie told me that very possibly, the Dems will again go for a vote on those tax cuts for the top 2%, soon, and possibly very soon.

As for the stimulus, we'd be far worse off, without it. What would the country have done without preserving the jobs of firemen, teachers, policemen, not to mention, there are, after all, many economists who agree that without it, we very likely could have been unable to divert the Bush Depression.

Was there any Republican Governor who didn't take that money, and use it to help his state?

Wasn't some of it used to divert losing over five million more jobs related to the automobile iindustry?

What could possibly be the Republican rationale for voting against this tax cut, and loan assistance, for our small businesses, other than just more Republican obstructionism, holding back important measure for our recovery, for political purposes?


09-25-2010, 09:36 AM
And there we have it ... according to the queen of doublethink cutting taxes on business owners is good and raising taxes on business owners is good.


09-26-2010, 01:55 PM
Another letter from a community bank director. Read and learn. J

"Hello Mish,

I sit on the board of a small community bank and I can attest to the fact that our loan portfolio is in excellent shape even when taking into consideration today's dismal economy. That is not to say a loan is good when made can go bad but if that happens, our bank has sufficient collateral pledged against the loan to cover such short falls. We also review our loan loss reserve and increase as needed based on criteria established under current banking regulations.

Sure there are numerous troubled banks identified by the FDIC but I feel many of these banks will survive.

All banks should be making reasonable earnings with today's low interest rate environment. For community banks, loans are vital and banks are interested in making loans to individuals or businesses that meet our underwriting standards but loan demand is down. A big majority of our loans are just loans leaving another financial institution. Why would someone leave one bank for another?

Of course loan interest rates play a part in the decision but I think a big part is the relationship a customer develops with the loan officer. Dealing directly with a local loan officer who understands your business and is genuinely interested in your business is vital.

Today many larger banks only use local loan officers to bring in the loan request but the decision to make the loan and the terms rest in some committee located in a town far away. Most small business persons will leave such a bank for a local bank with more personalized service.

It's ridiculous that Congress passed and our president signed a bill to provide funds to smaller banks for more loans. As a bank director, there is no way this plan can work. If a bank needs more deposits for loans, assuming the bank has sufficient capital, a banker can easily get more deposits from the public at a much lower cost than the bill passed by congress.

Our government is totally out of touch with the real world and passed this legislation strictly as a political move to make the public think they are trying to help small businesses.

This bull, I mean bill, should be labeled TARP II or some similar acronym."

09-26-2010, 03:13 PM
Well lets see.
People have guns. No police. Then you defend yourself.

No paid fireman? Nothing wrong with volunteer fire departments.

Teachers being laid off? Sorry with the current state of the educational system I doubt if it would make any difference.

12-04-2010, 05:01 PM
Here we have Gee extolling the virtues of tax cuts for small business owners when the party told here it was good ... currently we have Gee extolling the virtues of raising taxes on small business owners because they now say it is a bad idea.