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August 16th 2010    Tim Candler

    The distinction between capital leasing and equipment leasing has been foisted upon the manufacturing community by tax codes.  Otherwise the relationship between leasor and the leasee is determined and legal contracts are then written following a centuries old tradition.

     For the purposes of an accountant, a capital lease is distinguished from an equipment lease in the following way.  A capital lease enters those columns devoted to capital investment.  An equipment lease enters those columns devoted to running expenses.   In the world of figures capital expenditure is value added.  Running expenses are gasoline and oil, the sweat of employees and possibly handicap ramps.

   I could say a factory is worth a thousand dollars, or I could say a factory is hemorrhaging a thousand dollars.   Apparently the distinction is a legal one before it is a real.  And there are those who for very good reasons would keep it that way.

     With respect to idea the reality of money is a confusing hodgepodge of interests dominated by those with plenty of it.   And suffice to say those with plenty of it, do not part with it without first considering the benefit of doing so.

   The cynical of course might argue that gated communities will not last for eternity, except perhaps for the heaven-bound.  And I often wonder if it is fear of losing the bet that ultimately produces charitableness amongst the moneyed class.    

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