Poll: 74 percent of Americans say Congress out of touch. Yet 85% get reelected. Contradiction?

Answer 1

It's called laziness. Americans don't like what politicians do but we're too lazy and apathetic to do anything about it.

It's like the dog on the porch. Every couple minutes the dog let out a whimper. When a neighbor asked the owner why he said, "He's sitting on a nail"
"Why doesn't he move?"
"It doesn't hurt bad enough."

Until it starts to hurt bad enough nothing will change. But the pain is getting worse, and the revolution is coming.

Answer 2

The congress people talk about how much money they channeled into the state and that the state would lose that money if a junior congress person was to be elected.
It also boils down to laziness in that it is easier to send a known person back than to see what other candidates are saying about issues.
Even with term limits in place,some congress members get re elected past the term limits without a break in service.

Answer 3

It is indeed. Other polls have shown that a majority believe most congressmen should lose thier jobs but a similar majority believe thier congressman should be re-elected.
The public often rate congress as a whole very lowly but rarely hold thier own congressman as low.

Answer 4

extremely out of touch, they don't address the actual problems with the country, inexpensive wellbeing care, shopper protection, actual recommendations to immigration, fixing an potential disaster, appearing now on international warming, just to point out some. Congress and different political party's are in basic terms in contact approximately there very own wealth and persons that do them favors, the country is sinking rapid because of the fact of them...

Answer 5

Because Americans think that thier congressmen is doing a great job, after all, they voted for them.

But it is the other congressmen who are causing all the problems.

IE: it is someone elses fault, not thiers.

Answer 6

Let me put it this way:

Since the Fair Labor Standards Act of 1938, Congress has required employers to pay a minimum wage to workers, with some exceptions. Congress enacted the current general minimum wage of $5.15 an hour in 1996. The decade that has passed since then marks the longest period in history without an adjustment to the minimum wage. A majority of states have enacted minimum wages in excess of the current Federal level.

A full-time minimum wage worker earns about $10,712 a year. Roughly two million workers are paid at or below the federal minimum wage. Millions more would be affected by any increase, because many workers earn slightly more than the minimum wage and may also see an increase. According to some research, smaller businesses employ a disproportionate share of workers earning the minimum wage. Small business owners have therefore argued that any increase in the minimum wage should be accompanied by tax incentives targeted for small businesses in order to lower their costs.

The Finance Committee has exclusive jurisdiction over tax matters and held a hearing on January 10, 2007, entitled, `Tax Incentives for Businesses in Response to a Minimum Wage Increase.' The Committee heard from a variety of witnesses, including labor economists, small business owners, and tax experts. 1

[Footnote] Following this hearing, the Committee held a mark-up on January 17, 2007, to consider an original bill, S. 349 (the `Small Business and Work Opportunity Act of 2007'), a revenue-neutral bill containing a number of tax incentives for small businesses and businesses that hire minimum wage workers. With a majority and quorum present, the Committee favorably reported the bill by unanimous voice vote on that date and this report describes the provisions of the bill. The Committee anticipates that the Senate may consider adding the substance of this bill to H.R. 2, the `Fair Minimum Wage Act of 2007,' or similar legislation.

[Footnote 1: The Committee heard testimony that while increasing the minimum wage would benefit workers through increased wages, a minimum wage increase may also have consequences of employers hiring fewer workers or reducing workers' hours. Others testified that research has shown moderate increases to the minimum wage have little or no adverse employment impact with significant benefits to affected workers.]


TITLE I--SMALL BUSINESS TAX RELIEF PROVISIONS

A. EXTENSION OF INCREASED EXPENSING FOR SMALL BUSINESS
(Sec. 101 of the bill and sec. 179 of the Code)


PRESENT LAW
In lieu of depreciation, a taxpayer with a sufficiently small amount of annual investment may elect to deduct (or `expense') such costs under section 179. Present law provides that the maximum amount a taxpayer may expense, for taxable years beginning in 2003 through 2009, is $100,000 of the cost of qualifying property placed in service for the taxable year. 2

[Footnote] In general, qualifying property is defined as depreciable tangible personal property that is purchased for use in the active conduct of a trade or business. Off-the-shelf computer software placed in service in taxable years beginning before 2010 is treated as qualifying property. The $100,000 amount is reduced (but not below zero) by the amount by which the cost of qualifying property placed in service during the taxable year exceeds $400,000. The $100,000 and $400,000 amounts are indexed for inflation for taxable years beginning after 2003 and before 2010. For taxable years beginning in 2007, the inflation-adjusted amounts are $112,000 and $450,000, respectively. 3

[Footnote]

[Footnote 2: Additional section 179 incentives are provided with respect to qualified property meeting applicable requirements that is used by a business in an empowerment zone (sec. 1397A), a renewal community (sec. 1400J), or the Gulf Opportunity Zone (sec. 1400N(e)).]

[Footnote 3: Rev. Proc. 2006-53, sec. 2.19, 2006-48 I.R.B. 996 (Nov. 27, 2006).]

The amount eligible to be expensed for a taxable year may not exceed the taxable income for a taxable year that is derived from the active conduct of a trade or business (determined without regard to this provision). Any amount that is not allowed as a deduction because of the taxable income limitation may be carried forward to succeeding taxable years (subject to similar limitations). No general business credit under section 38 is allowed with respect to any amount for which a deduction is allowed under section 179. An expensing election is made under rules prescribed by the Secretary. 4

[Footnote]

[Footnote 4: Sec. 179(c)(1). Under Treas. Reg. sec. 1.179-5, applicable to property placed in service in taxable years beginning after 2002 and before 2008, a taxpayer is permitted to make or revoke an election under section 179 without the consent of the Commissioner on an amended Federal tax return for that taxable year. This amended return must be filed within the time prescribed by law for filing an amended return for the taxable year. T.D. 9209, July 12, 2005.]

For taxable years beginning in 2010 and thereafter (or before 2003), the following rules apply. A taxpayer with a sufficiently small amount of annual investment may elect to deduct up to $25,000 of the cost of qualifying property placed in service for the taxable year. The $25,000 amount is reduced (but not below zero) by the amount by which the cost of qualifying property placed in service during the taxable year exceeds $200,000. The $25,000 and $200,000 amounts are not indexed. In general, qualifying property is defined as depreciable tangible personal property that is purchased for use in the active conduct of a trade or business (not including off-the-shelf computer software). An expensing election may be revoked only with consent of the Commissioner. 5

[Footnote]

[Footnote 5: Sec. 179(c)(2).]


REASONS FOR CHANGE
The Committee believes that section 179 expensing provides two important benefits for small businesses. First, it lowers the cost of capital for property used in a trade or business. With a lower cost of capital, the Committee believes small businesses will invest in more equipment and employ more workers. Second, it eliminates depreciation recordkeeping requirements with respect to expensed property. In 2006, Congress acted to extend the increased value of these benefits and the increased number of taxpayers eligible for these benefits for taxable years through 2009. The Committee believes that the changes to section 179 expensing will continue to provide important benefits if extended, and the bill therefore extends these changes for an additional year.


EXPLANATION OF PROVISION
The provision extends for one year the increased amount that a taxpayer may deduct and the other section 179 rules applicable in taxable years beginning before 2010. Thus, under the provision, these present-law rules continue in effect for taxable years beginning after 2009 and before 2011.


EFFECTIVE DATE
The provision is effective for taxable years beginning after December 31, 2009.


B. FIFTEEN-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED LEASEHOLD IMPROVEMENTS, QUALIFIED RESTAURANT IMPROVEMENTS AND NEW RESTAURANT BUILDINGS
(Sec. 102 of the bill and sec. 168 of the Code)


PRESENT LAW
In general

A taxpayer generally must capitalize the cost of property used in a trade or business and recover such cost over time through annual deductions for depreciation or amortization. Tangible property generally is depreciated under the modified accelerated cost recovery system (`MACRS'), which determines depreciation by applying specific recovery periods, placed-in-service conventions, and depreciation methods to the cost of various types of depreciable property. 6

[Footnote] The cost of nonresidential real property is recovered using the straight-line method of depreciation and a recovery period of 39 years. Nonresidential real property is subject to the mid-month placed-in-service convention. Under the mid-month convention, the depreciation allowance for the first year property is placed in service is based on the number of months the property was in service, and property placed in service at any time during a month is treated as having been placed in service in the middle of the month.

[Footnote 6: Sec. 168.]

Depreciation of leasehold improvements

Generally, depreciation allowances for improvements made on leased property are determined under MACRS, even if the MACRS recovery period assigned to the property is longer than the term of the lease. This rule applies regardless of whether the lessor or the lessee places the leasehold improvements in service. If a leasehold improvement constitutes an addition or improvement to nonresidential real property already placed in service, the improvement generally is depreciated using the straight-line method over a 39-year recovery period, beginning in the month the addition or improvement was placed in service. However, exceptions exist for certain qualified leasehold improvements and certain qualified restaurant property.

Qualified leasehold improvement property

Section 168(e)(3)(E)(iv) provides a statutory 15-year recovery period for qualified leasehold improvement property placed in service before January 1, 2008. Qualified leasehold improvement property is recovered using the straight-line method. Leasehold improvements placed in service in 2008 and later will be subject to the general rules described above.

Qualified leasehold improvement property is any improvement to an interior portion of a building that is nonresidential real property, provided certain requirements are met. The improvement must be made under or pursuant to a lease either by the lessee (or sublessee), or by the lessor, of that portion of the building to be occupied exclusively by the lessee (or sublessee). The improvement must be placed in service more than three years after the date the building was first placed in service. Qualified leasehold improvement property does not include any improvement for which the expenditure is attributable to the enlargement of the building, any elevator or escalator, any structural component benefiting a common area, or the internal structural framework of the building. However, if a lessor makes an improvement that qualifies as qualified leasehold improvement property, such improvement does not qualify as qualified leasehold improvement property to any subsequent owner of such improvement. An exception to the rule applies in the case of death and certain transfers of property that qualify for non-recognition treatment.

Qualified restaurant property

Section 168(e)(3)(E)(v) provides a statutory 15-year recovery period for qualified restaurant property placed in service before January 1, 2008. For purposes of the provision, qualified restaurant property means any improvement to a building if such improvement is placed in service more than three years after the date such building was first placed in service and more than 50 percent of the building's square footage is devoted to the preparation of, and seating for on-premises consumption of, prepared meals. Qualified restaurant property is recovered using the straight-line method.


REASONS FOR CHANGE
The Committee believes that taxpayers should not be required to recover the costs of certain leasehold improvements beyond the useful life of the investment. The 39-year recovery period for leasehold improvements for property placed in service after December 31, 2007 extends beyond the useful life of many such investments. Although lease terms differ, the Committee believes that lease terms for commercial real estate are also typically shorter than the 39-year recovery period. In the interests of simplicity and administrability, a uniform period for recovery of leasehold improvements is desirable. Therefore, the provision extends the 15-year recovery period for leasehold improvements.

The Committee also believes that unlike other commercial buildings, restaurant buildings generally are more specialized structures. Restaurants also experience considerably more traffic, and remain open longer than most commercial properties. This daily use causes rapid deterioration of restaurant properties and forces restaurateurs to constantly repair and upgrade their facilities. As such, restaurant facilities generally have a shorter life span than other commercial establishments. The Committee bill extends the 15-year recovery period for improvements made to restaurant buildings, and applies the 15-year recovery period to new restaurants, to more accurately reflect the true economic life of such properties.


EXPLANATION OF PROVISION
The present-law provisions for qualified leasehold improvement property and restaurant improvements are extended for three months (through March 31, 2008). In addition, the three-year rule for restaurant property is repealed. Thus, newly constructed restaurant buildings and restaurant improvements within the first three years also qualify for the 15-year recovery period.


EFFECTIVE DATE
The provision generally applies to property placed in service after December 31, 2007. Repeal of the three-year rule for restaurant property is effective for property placed in service after the date of enactment, the original use of which begins with the taxpayer after the date of enactment.


C. FIFTEEN-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED RETAIL IMPROVEMENT PROPERTY
(Sec. 102 of the bill and sec. 168 of the Code)


PRESENT LAW
A taxpayer generally must capitalize the cost of property used in a trade or business and recover such cost over time through annual deductions for depreciation or amortization. Tangible property generally is depreciated under the modified accelerated cost recovery system (`MACRS'), which determines depreciation by applying specific recovery periods, placed-in-service conventions, and depreciation methods to the cost of various types of depreciable property. 7

[Footnote] The cost of nonresidential real property is recovered using the straight-line method of depreciation and a recovery period of 39 years. Nonresidential real property is subject to the mid-month placed-in-service convention. Under the mid-month convention, the depreciation allowance for the first year property is placed in service is based on the number of months the property was in service, and property placed in service at any time during a month is treated as having been placed in service in the middle of the month.

[Footnote 7: Sec. 168.]

Generally, depreciation allowances for improvements made on retail property are determined under MACRS. If a retail property improvement constitutes an addition or improvement to nonresidential real property already placed in service, the improvement generally is depreciated using the straight-line method over a 39-year recovery period, beginning in the month the addition or improvement was placed in service. A special provision provides a 15-year recovery period for qualified leasehold improvement property. 8

[Footnote]

[Footnote 8: Sec. 168(e)(3)(E)(iv).]


REASONS FOR CHANGE
The Committee believes that taxpayers should not be required to recover the costs of certain improvements beyond the useful life of the investment. The present law 39-year recovery period for improvements to owner occupied (i.e., not leased) retail property extends beyond the useful life of many such investments. Therefore, the provision includes a 15-year recovery period for qualified retail improvements.

Additionally, the Committee believes that retailers should not be treated differently based on whether the building in which they operate is owned or leased. The shorter 15-year recovery period for leasehold improvements under present law provides an unfair competitive advantage for those retailers who lease space. As many small business retailers own the building in which they operate their business, the Committee believes this provision will provide relief to small businesses.


EXPLANATION OF PROVISION
The provision provides a statutory 15-year recovery period for qualified retail improvement property placed in service before March 31, 2008. For purposes of the provision, qualified retail improvement property means any improvement to an interior portion of a building which is nonresidential real property if such portion is open to the general public 9

[Footnote] and is used in the retail trade or business of selling tangible personal property to the general public, and such improvement is placed in service more than three years after the date the building was first placed in service. Qualified retail improvement property does not include any improvement for which the expenditure is attributable to the enlargement of the building, any elevator or escalator, or the internal structural framework of the building.

[Footnote 9: Improvements to portions of a building not open to the general public (e.g., stock room in back of retail space) do not qualify under the provision.]

For the purposes of this provision, retail establishments that qualify for the 15-year recovery period include those primarily engaged in the sale of goods. Examples of these retail establishments include, but are not limited to, grocery stores, clothing stores, hardware stores and convenience stores. However, establishments primarily engaged in providing services, such as professional services, financial services, personal services, health services, and entertainment, do not qualify. It is generally intended that businesses defined as a store retailer under the current North American Industry Classification System (industry sub-sectors 441 through 453) qualify for the provision, while those in other industry classes do not qualify under the provision.


EFFECTIVE DATE
The provision applies to property placed in service after the date of enactment.


D. EXPAND ELIGIBILITY FOR CASH METHOD OF ACCOUNTING
(Sec. 103 of the bill and secs. 446 and 448 of the Code)


PRESENT LAW
Section 446(c) of the Code generally allows a taxpayer to select the method of accounting it will use to compute its taxable income provided that such method clearly reflects the income of the taxpayer. A taxpayer is entitled to adopt any one of the permissible methods for each separate trade or business, subject to certain restrictions. Permissible methods include the cash receipts and disbursements method (`cash method'), an accrual method, or any other method (including a hybrid method) permitted under regulations prescribed by the Secretary of the Treasury.

Section 448 generally provides that the cash method of accounting may not be used by any C corporation,

[Footnote 10: by any partnership that has a C corporation as a partner, or by any tax shelter. Exceptions are made for farming businesses and qualified personal service corporations. Additionally, an exception is provided for C corporations and partnerships that have a C corporation as a partner if the average annual gross receipts of the taxpayer is $5 million or less for all prior taxable years (including the prior taxable years of any predecessor of the entity). For this purpose, average annual gross receipts is calculated for each tax year by averaging the annual gross receipts for the three-year period ending in such year. The test must be met for all prior tax years beginning after December 31, 1985 in order for a taxpayer to be eligible for the exception.]

[Footnote 10: For this purpose, a tax-exempt trust with unrelated business income is treated as a C corporation with respect to the portion of its activities that constitute an unrelated trade or business. Treas. Reg. sec. 1.448-1T(a)(3).]

Section 471 provides that, regardless of a taxpayer's overall method of accounting, the Secretary may require taxpayers to maintain inventories on the accrual method if necessary to clearly reflect income. This requirement is generally applied to taxpayers for whom the production, purchase, or sale of merchandise is an income-producing factor.

[Footnote 11: However, an exception is provided for taxpayers whose average annual gross receipts does not exceed $1 million.]

[Footnote 12: Such taxpayers account for inventory as materials and supplies that are not incidental pursuant to Regulations section 1.162-3.]

[Footnote 13: ]

[Footnote 11: Treas. Reg. sec. 1.471-1.]

[Footnote 12: Rev. Proc. 2001-10, 2001-02 I.R.B. 272 (January 8, 2001).]

[Footnote 13: Under Treas. Reg. sec. 1.162-3, a deduction is permitted for the cost of materials and supplies only in the amount that they are actually consumed and used in operations during the tax year.]

When a taxpayer changes its method of accounting, there is taken into account for the taxable year of the change adjustments to taxable income necessary to prevent amounts from being duplicated or omitted by reason of the change.

[Footnote 14: Positive adjustments (i.e., additions to taxable income), if initiated by the taxpayer and made with the consent of the Secretary, are generally spread over four taxable years beginning in the year of change.]

[Footnote 15: Negative adjustments (i.e., reductions to taxable income) are generally taken into account entirely in the year of change.]

[Footnote 16: ]

[Footnote 14: Sec. 481.]

[Footnote 15: Rev. Proc. 2002-19, 2002-1 C.B. 696.]

[Footnote 16: Ibid.]


REASONS FOR CHANGE
The Committee is sensitive to the trade-off between competing priorities of simplification and accurate income measurement in the tax system. Many taxpayers find the cash method of accounting to be simpler to use than the accrual method, which generally is considered to provide a more accurate measurement of income for each taxable year. The effect of the differences in income measurement is not permanent, as the different methods produce the same total amount of taxable income over time.

The present-law exception for small businesses with gross receipts under $5 million

[Footnote 17: reflects the view that, in the case of small businesses, the benefits of simplification under the cash method outweigh any impact on accuracy. The Committee believes that the threshold has become outdated over time and understates the maximum size of business which should be eligible for use of the cash method. Accordingly, the Committee provision increases the threshold and indexes it for inflation to prevent it from becoming outdated in the future.]

[Footnote 17: The threshold is $1 million with respect to inventory accounting.]


EXPLANATION OF PROVISION
Under the provision, eligibility to use the cash method under the annual gross receipts exception is expanded to all non-farm taxpayers other than tax shelters regardless of the presence of inventories, and the threshold for the exception is increased from $5 million to $10 million.

The provision also resets the December 31, 1985 testing start date. Under the provision, the gross receipts test must be met for all tax years ending on or after the date of enactment. Thus, a taxpayer who did not meet the $5 million gross receipts test in one or more years ending prior to the date of enactment but meets the new $10 million test for all tax years ending on or after the date of enactment is eligible to use the cash method under the provision.

The $10 million threshold is indexed for tax years beginning in calendar years after 2008. The indexed amount applies in each year for the purposes of testing the average annual gross receipts, calculated based on the prior three tax years. Once a taxpayer has either met or not met the gross receipts test with respect to a particular tax year, that result cannot subsequently be changed by the effect of the indexing. Thus, a tax year that ends on or after the date of enactment for which the gross receipts test is not met causes the taxpayer to be ineligible to use the cash method under the gross receipts test exception in all tax years subsequent to the year in which the test is not met, regardless of whether the threshold is subsequently increased by indexing above the amount of average annual gross receipts for the year in which the test was not met.

Accounting method changes under the provision are deemed to be initiated by the taxpayer and made with the consent of the Secretary. Thus, the adjustments under section 481 are spread over four years (in the case of a positive change) or taken into account entirely in one year (in the case of a negative change).

Taxpayers who are eligible to use the cash method under the provision also are exempt from maintaining inventories on the accrual method. Thus, the $1 million gross receipts threshold of Rev. Proc. 2001-10 is effectively increased to $10 million for taxpayers qualifying for the provision.


EFFECTIVE DATE
The provision is applicable to taxable years beginning after the date of enactment.


E. WORK OPPORTUNITY TAX CREDIT
(Sec. 104 of the bill and sec. 51 of the Code)


PRESENT LAW
In general

The work opportunity tax credit is available on an elective basis for employers hiring individuals from one or more of nine targeted groups. The amount of the credit available to an employer is determined by the amount of qualified wages paid by the employer. Generally, qualified wages consist of wages attributable to service rendered by a member of a targeted group during the one-year period beginning with the day the individual begins work for the employer (two years in the case of an individual in the long-term family assistance recipient category).

Targeted groups eligible for the credit

Generally an employer is eligible for the credit only for qualified wages paid to members of a targeted group.

(1) Families receiving TANF

An eligible recipient is an individual certified by a designated local employment agency (e.g., a State employment agency) as being a member of a family eligible to receive benefits under the Temporary Assistance for Needy Families Program (`TANF') for a period of at least nine months part of which is during the 18-month period ending on the hiring date. For these purposes, members of the family are defined to include only those individuals taken into account for purposes of determining eligibility for the TANF.

(2) Qualified veteran

A qualified veteran is a veteran who is certified by the designated local agency as a member of a family certified as receiving assistance under a food stamp program under the Food Stamp Act of 1977 for a period of at least three months part of which is during the 12-month period ending on the hiring date. For these purposes, members of a family are defined to include only those individuals taken into account for purposes of determining eligibility for a food stamp program under the Food Stamp Act of 1977.

For these purposes, a veteran is an individual who has served on active duty (other than for training) in the Armed Forces for more than 180 days or who has been discharged or released from active duty in the Armed Forces for a service-connected disability. However, any individual who has served for a period of more than 90 days during which the individual was on active duty (other than for training) is not a qualified veteran if any of this active duty occurred during the 60-day period ending on the date the individual was hired by the employer. This latter rule is intended to prevent employers who hire current members of the armed services (or those departed from service within the last 60 days) from receiving the credit.

(3) Qualified ex-felon

A qualified ex-felon is an individual certified as: (1) having