Return to Transcripts main page
American Morning
Minding Your Business: What Missed the Cut in Tax Cut Bill?
Aired May 30, 2003 - 07:45 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Some big business scored some big victories in the tax cut plan passed by Congress.
Andy Serwer is here talking about the big winners, minding our business this morning.
You've been looking into this.
(CROSSTALK)
ANDY SERWER, "FORTUNE" MAGAZINE: Yes, you know, some people like to go home and watch baseball. I've got to pore through the tax bill.
HEMMER: You do.
SERWER: You know? I mean, come on, some guys have all of the luck.
And, you know, it does take sort of the next day, the Monday- morning quarterback to really go through this thing. Let's take a look at some of the things that made it in and made it out, kind of a mixed picture in terms of people who are benefiting, companies that are benefiting.
You know, we heard a lot about cracking down on overseas tax shelters. They didn't do that. At the last minute that was taken out. Again, you know, they had to compromise with the $350 billion, and that would have been a way to increase tax rolls.
CEO compensation limits, they were looking to get rid of some of those egregious, outrageous deferred compensation plans that some of those CEOs and executives at Enron and Tyco took advantage of; that didn't happen.
And then a benefit to rural health care to keep doctors from leaving rural areas.
HEMMER: A big issue.
SERWER: It did not make it in, and this was a favorite of Senator Grassley's, a Republican, and that didn't make it in either. So a mixed picture there.
HEMMER: And so, as you're going through this stack, this bill that was signed into law, you have to figure out what was achieved in conference...
SERWER: Right.
HEMMER: ... between the House and Senate leaders and what was proposed by the White House, that will take a bit more of the fine reading. Small companies, however...
SERWER: Yes.
HEMMER: ... can go out and buy an SUV. A capital investment?
SERWER: Well, that's...
HEMMER: A tax write-off?
SERWER: Yes.
HEMMER: That's OK.
SERWER: A tax write-off. But let me just explain what's going on here. It used to be that you could write off if you were a small business an SUV up to about $25,000. They increased that to $100,000. This is basically for farmers and construction companies, so you wouldn't pay a luxury tax.
Now, if you own a small business you can go out and buy an Escalade or a Navigator or a Hummer and write it off, up to $100,000. And this is because the tax guys can't really distinguish between someone who owns a dry cleaner and someone who has got a construction company and using it for legitimate purposes. You know, go figure, if you ask me. But, you know, it's just one of those quirky things.
HEMMER: Whether it's a small SUV or a large SUV, if you're using it for your company, that's still legal?
SERWER: Yes, but it's the fact that you get a tax credit for a luxury SUV over -- you know, up to $100,000.
HEMMER: That's what you're driving, right?
SERWER: I wish. I'd like to drive an Escalade.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
Bill?>
Aired May 30, 2003 - 07:45 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Some big business scored some big victories in the tax cut plan passed by Congress.
Andy Serwer is here talking about the big winners, minding our business this morning.
You've been looking into this.
(CROSSTALK)
ANDY SERWER, "FORTUNE" MAGAZINE: Yes, you know, some people like to go home and watch baseball. I've got to pore through the tax bill.
HEMMER: You do.
SERWER: You know? I mean, come on, some guys have all of the luck.
And, you know, it does take sort of the next day, the Monday- morning quarterback to really go through this thing. Let's take a look at some of the things that made it in and made it out, kind of a mixed picture in terms of people who are benefiting, companies that are benefiting.
You know, we heard a lot about cracking down on overseas tax shelters. They didn't do that. At the last minute that was taken out. Again, you know, they had to compromise with the $350 billion, and that would have been a way to increase tax rolls.
CEO compensation limits, they were looking to get rid of some of those egregious, outrageous deferred compensation plans that some of those CEOs and executives at Enron and Tyco took advantage of; that didn't happen.
And then a benefit to rural health care to keep doctors from leaving rural areas.
HEMMER: A big issue.
SERWER: It did not make it in, and this was a favorite of Senator Grassley's, a Republican, and that didn't make it in either. So a mixed picture there.
HEMMER: And so, as you're going through this stack, this bill that was signed into law, you have to figure out what was achieved in conference...
SERWER: Right.
HEMMER: ... between the House and Senate leaders and what was proposed by the White House, that will take a bit more of the fine reading. Small companies, however...
SERWER: Yes.
HEMMER: ... can go out and buy an SUV. A capital investment?
SERWER: Well, that's...
HEMMER: A tax write-off?
SERWER: Yes.
HEMMER: That's OK.
SERWER: A tax write-off. But let me just explain what's going on here. It used to be that you could write off if you were a small business an SUV up to about $25,000. They increased that to $100,000. This is basically for farmers and construction companies, so you wouldn't pay a luxury tax.
Now, if you own a small business you can go out and buy an Escalade or a Navigator or a Hummer and write it off, up to $100,000. And this is because the tax guys can't really distinguish between someone who owns a dry cleaner and someone who has got a construction company and using it for legitimate purposes. You know, go figure, if you ask me. But, you know, it's just one of those quirky things.
HEMMER: Whether it's a small SUV or a large SUV, if you're using it for your company, that's still legal?
SERWER: Yes, but it's the fact that you get a tax credit for a luxury SUV over -- you know, up to $100,000.
HEMMER: That's what you're driving, right?
SERWER: I wish. I'd like to drive an Escalade.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
Bill?>
