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cropsey, il 61731 | I'm not quite sure why we take on the 179 as a farming only thing when it applies to about any business. In general, in stark contrast to what Idea would think, the folks that came up with this plan think it's better to keep the money in the economy instead of collecting it in taxes all at once. Right or wrong there is a tendency for business folks to buy something rather than pay tax on good profits. This is economic activity and when the things bought are large enough, it's 'real' economic activity (durable goods are purchased not just a TV). To be clear, this is not avoiding taxes, only delaying them. Think of the potential high tax that would be due as an incentive to avoid it. I think that's all part of the 179 plan.
I can agree some folks use it unwisely to buy stuff they don't need and that could lead to problems. No one is taxed at 100% so it's not a one for one trade anyway. It is an incentive, nothing more. Frankly it's enormously better than bunches of handouts/payoffs for votes.
The dirty little secret is that by me putting up a $1M worth of hog sheds and others doing similar projects, we put a bunch of folks to work that all pay taxes. If enough of us do similar things those folks make real money and pay more taxes. Turns out the government collects far more money that way. On the other hand, they don't have control of the $. They are not supposed to.
Edited by Pat H 12/15/2015 09:15
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179 deduction - email your Congressman/Senator
