Kamala's $50k tax credit for Startups is a joke - most don't even make a profit for the first several years

Althea said:
The article says nothing about Harris' 'concept of a plan'. Dog rarely understands the topics he posts about.
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Kamala has been an ardent student of Hillary, Obama, and Biden and now leads our party in a very confident way. She is also not afraid to cling to middle ground, and that is where most people's heads are at these days. Bill, Hillary, Obama, and Biden knew how important it was to work in the middle. Kamala may even be brave enough to tilt a little right in terms of Fiscal Policy, Border Policy, and ENERGY. She is definitely a UNITER and not a divider. I am very impressed.

She is not afraid to talk about proven policies that work, and are popular with everyone and not just Democrats!
 
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Geeko Sportivo said:

Kamala's $50k tax credit for Startups is a joke - most don't even make a profit for the first several years​


Hence the need for a 50K break on their taxes!

I can see that.
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you do?.....if they aren't making a profit they owe no taxes.......how does a tax credit help someone who owes no taxes.......please explain in detail......use numbers larger than a nickel.......:pke:
 
Poor Richard Saunders said:
Can you amortize a piece of equipment purchased for the company?
You maybe should google the difference before you make yourself look like more of a fool.
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Typically you can depreciate it.

And if we use a more typical startup loan scenario, ... you won't be using Kamala's deduction for the first 4 years. By then you may have gone bankrupt. It's a joke, not an incentive.

You'll be lucky if the gov't doesn't shut you down for a year with another pandemic. Who wants to risk their life savings on that.
 
Bigdog said:
Typically you can depreciate it.

And if we use a more typical startup loan scenario, ... you won't be using Kamala's deduction for the first 4 years. By then you may have gone bankrupt. It's a joke, not an incentive.

You'll be lucky if the gov't doesn't shut you down for a year with another pandemic. Who wants to risk their life savings on that.
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Did you run your amortization schedule before making your claim?
 
PostmodernProphet said:
you do?.....if they aren't making a profit they owe no taxes.......how does a tax credit help someone who owes no taxes.......please explain in detail......use numbers larger than a nickel.......:pke:
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A business is capable of making a large enough income to have to pay taxes, even though there was no profit. What? Are you Stupid?
Let’s consider a startup that has $2 million in revenue, $500,000 in non-R&D expenses, and $5 million in R&D expenses. Traditionally, the startup wouldn’t owe any taxes due to its negative net income of $3.5 million. But the TCJA changes this. In the first year, only $500,000 of the $5 million in R&D can be deducted. Consequently, the startup would report $1 million in taxable income and owe over $200,000 in federal taxes. That’s a sizeable amount, equivalent to the salary of a software engineer.
The Tax Cuts and Jobs Act (TCJA) was a major overhaul of the tax code, signed into law by President Donald Trump on Jan. 1, 2018. The legislation included some of the biggest changes to the tax code in three decades. The reform impacted both taxpayers and business owners alike.
 
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Hawkeye10 said:
I am pretty sure that tax credits can be taken over multiple years, that most will collect the whole $50k gift.
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Not a tax credit as much as a business expenses. Not a gift. You can take it for as long as it takes to be used up. Let's say you paid a million dollars to start a company, you get $50k immediately in business deductions, and the rest amortized over 15 years. If you only have $10k in profits before the startup business expenses, then you will be using up $10k of the business expenses for the next 100 years. That is no taxes for 100 years.
 
Geeko Sportivo said:
A business is capable of making a large enough income to have to pay taxes, even though there was no profit. What? Are you Stupid?
Let’s consider a startup that has $2 million in revenue, $500,000 in non-R&D expenses, and $5 million in R&D expenses. Traditionally, the startup wouldn’t owe any taxes due to its negative net income of $3.5 million. But the TCJA changes this. In the first year, only $500,000 of the $5 million in R&D can be deducted. Consequently, the startup would report $1 million in taxable income and owe over $200,000 in federal taxes. That’s a sizeable amount, equivalent to the salary of a software engineer.
The Tax Cuts and Jobs Act (TCJA) was a major overhaul of the tax code, signed into law by President Donald Trump on Jan. 1, 2018. The legislation included some of the biggest changes to the tax code in three decades. The reform impacted both taxpayers and business owners alike.
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GOOD LORD.......you realize you've just posited a start up business with revenue of $2M but only $500k in expenses spending $5M on R & D......read the article on REAL small business start ups..........the discussion is about companies that have revenues of $250,000 and expenses of $260,000 and can't afford to do ANY R&D........as asked before, what good is a tax credit to them......far more intelligent to give them a $50,000 zero interest small business loan.....
 
PostmodernProphet said:
GOOD LORD.......you realize you've just posited a start up business with revenue of $2M but only $500k in expenses spending $5M on R & D......read the article on REAL small business start ups..........the discussion is about companies that have revenues of $250,000 and expenses of $260,000 and can't afford to do ANY R&D........as asked before, what good is a tax credit to them......far more intelligent to give them a $50,000 zero interest small business loan.....
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Ok! Good Post! I'm impressed.

Sounds like you and Kamala or TRUMP can come to terms on a deal!

Kamala is just trying to stimulate startup businesses and give them a chance to get off the ground and be able to compete. Many Seniors need to startup small businesses to boost their
incomes, and this would certainly benefit them. Small business low interest loans and start-up Tax breaks are a great way to get them started.

If only the Leader of the House and his members would think like you, and lead the way!

Thanks!
 
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