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cropsey, il 61731 | The idea is to smooth out income so taxes are stable. Taxes are really never avoided. The 179 will matter less as far income goes down, but was a useful tool to get equipment bought (ie. grow the economy) instead of being taxed right away for the income. On a longer scale without favorable deduction rules I could never have afforded the taxes while paying for hog buildings. As a small farmer there was no way to 'save up' the money to buy the hog sheds so a loan is involved. The loan payment along with utilities, maintenance and a little labor the monthly check is nearly gone. Nothing leftover to pay taxes on the part of the payment that goes to pay principle (principle is not deductible). However, we will be paying taxes before too long and really all we have done is to delay the tax until we are in a position to pay it. 179 is no different - taxes are never avoided, just delayed. Don't worry Idea - we'll still be paying for your government eventually.
Keep in mind this is not the government's money. To me this is just a way for some of the better folks in DC to go around their liberal cohorts and keep the money in the economy instead of in the government. Still, we don't get to keep it. I guess it's a step in the right direction.
I do get really tired of folks that are definitely no smarter or capable than any of us telling us we are incapable (it's how the poor and minorities feel, though they have gotten used to it). Guys like Reagan recognized "we the people" are just fine and the odd balls tend to fall in line when most of us are going the right direction. I realize Ronny gave the wheat farmers a hard time, but we are a whiny lot - not a big surprise sometimes. | |
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179 deduction - email your Congressman/Senator
