Tax Talk Plus» General Business Matters

California Tax System is #2 (From the Bottom)

admin — Wed, 10 Nov 2010 00:09:36 +0000

A Race to The Bottom….

California’s business friendliness reached a new low in this year’s annual survey by the Tax Foundation. With a one-point drop to 49th place, California was beaten out by New York for the bottom spot.

As a result of the combination of: 1) 2010 California legislation which denies the use of Net Operating Loss carryovers in 2010 and 2011, as well as accelerating quarterly estimates and 2) California’s mid-term election results in bringing in many of the same “usual (tax-and-spend) suspects” at both the state and federal level, the Golden State is well positioned to drop to 50th place next year.

Read the in-depth comparison of business friendly and not-so-business friendly states to operate in:

http://www.taxfoundation.org/taxdata/topic/90.html

On the positive side, California continues to allow the use of the valuable Enterprise Zone and R&D tax credits. For more information, check out the library of articles at:

http://www.blakechristian.com/hiring_tax_credits.html

For post-election tax planning information and the impact of the potential expiration of the Bush Tax Cuts, please also check-out Video #4 at:

http://www.losangelesbtv.com/BlakeChristian.html

Tax Impact From Mid-Term Elections – Good News We Think

admin — Thu, 04 Nov 2010 18:21:40 +0000

The voters have spoken and the Congressireonal balance of power has shifted dramatically. So how will this impact future federal tax policy? We think the new composition will serve the U.S. taxpayers well in terms of limiting tax hikes and controlling deficit spending.

The following video (Video #4) and other other links will provide you some useful guidance:

http://www.losangelesbtv.com/BlakeChristian.html

Additional Library of tax and economic videos can be accessed at:

http://www.hcvt.com/Resources-Links/media.html

and

http://www.youtube.com/user/bchristiantax1

The expiration of the Bush Tax Cuts in 2011 will equate to a $138 Billion tax hit in 2011 and $200 Billion in 2012 to wealthy and middle-class U.S. taxpayers. An extension of the Bush Tax Cuts are predicted to increase GNP by .5% to 1.4% and the Congressional Budget Office predicts job creation in the 1.3 to 3.5 Million full-time jobs.

Check out the Financial Times’ Op-Ed:

http://www.ft.com/cms/s/0/74fc990a-e79a-11df-8ade-00144feab49a.html

For a full library of my AICPA Tax Articles, click the link below:

http://www.cpa2biz.com/search/results.jsp?mode=content&N=79&Ns=P_UpdatedDate|1

Federal Reserve Promotes California Hiring Tax Credit and Loan Programs

admin — Sat, 31 Jul 2010 23:03:34 +0000

Federal Reserve Board of San Francisco Promotes California Enterprise Zones.

Empowered Banking and the Federal Reserve Board recently sponsored a banking and business seminar to inform bankers, business owners and consultants about the power of the California Enterprise Zone in stimulating job creation, capital investment and bank loans.

To read how employers can secure hiring credits up to $37,000 per qualified employee, generate equipment credits ranging from 10% ot 30% and secure lower rate loans, please click on the PowerPoint link below:

http://www.empoweredbanking.com/2010/Events/FederalReserveEvent

To read more about the wide variety of state and federal hiring credit programs available for virtually any business, click on the article links below:

Accounting Today Hiring Credit Article:

http://www.webcpa.com/ato_issues/24_9/will-work-for-tax-breaks-54829-1.html

CCH Tax Figures Profile:

http://newsletters.cchgroup.com/node/265

For weekly tax and financial updates, please bookmark and follow me on:

www.blakechristian.com

www.twitter.com/taxcredits_cpa

Government Tightens The Screws On Business

admin — Sat, 31 Jul 2010 21:40:43 +0000

There are over 60 federal agencies with over 130,000 employees and combined budgets of over $20 billion. So don’t be surprised to hear: “I’m from the federal government and I’m here to talk about your business”.

To read about the federal government’s most recent moves to force business compliance with employment, immigration, tax and other regulated areas, click the link below:

http://www.cpa2biz.com/Content/media/newsletters/Corporate_Tax_Insider/corptaxinsider100624.jsp

To read a variety of tax planning articles, please click on the link below:

http://www.cpa2biz.com/search/results.jsp?Ntt=blake+christian&Ntk=C2BSearch&Ntx=mode+matchallpartial&N=0&Nty=1&Ns=P_UpdatedDate|1

To receive weekly tax and financial updates, please bookmark me at: www.blakechristian.com and follow me on twitter at: www.twitter.com/taxcredits_cpa

HIRE Act and Other Hiring Incentives. California Long-Term Unemployed Doubles. Tax Credit Programs Offer Workers and Employers Solid Incentives For Job Expansion.

admin — Mon, 31 May 2010 16:08:40 +0000

California Long-Term Unemployed doubles to 880,000 over the past year. Over 40% of the unemployed have been out of work over 27 weeks.

http://www.sacbee.com/2010/05/30/2786659/nearly-880000-californians-are.html#mi_rss=Top%20Stories

There are also a variety of state and federal tax credits available for employers who hire unemployed workers, including certain recent graduates, veterans and other economically disadvantaged employees:

http://www.accountingweb.com/topic/education-careers/unemployed-can-use-tax-laws-secure-job

Read how to maximize the immediate 6.2% Social Security tax holiday and the $1,000 hiring tax credit for hiring the unemployed. http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2010/CorpTax/HIREAct2010.jsp

For a full library of related articles, log onto: www.blakechristian.com or www.twitter.com/taxcredits_cpa.

Healthcare Bill and Related Tax Increases Inch Along

admin — Sat, 20 Mar 2010 05:56:08 +0000

http://www.huffingtonpost.com/2010/03/19/health-care-whip-count-li_n_505709.html

http://www.slate.com/id/2220222/

The $940 Billion healthcare bill bill continues to move towards a contentious vote on Sunday. 216 votes are needed in the House to pass the Senate version of the healthcare bill which was passed a few months ago.

The front loaded tax collections will offer the administration with some nice window dressing for the budget deficit and the Social Security funding. However, if this bill moves forward, it will surely have a negative impact on job retention and creation due to the higher cost of labor.

Many of the healthcare benefits will not kick in until 2014, and it is difficult to project whether cost trends will drop or increase during this period, since the pricing of medical procedures, drugs and other related costs are fairly elastic in the healthcare arena.

If the House passes the Senate bill, expect both the House and Senate to begin the reconcilaition process to sidestep the supermajority requirement. To review the proposed Recociliation Provisons to modify the previously adopted Senate Healthcare Bill, see the House link below for details:

http://www.rules.house.gov/amendment_details.aspx?NewsID=4609

Caterpillar Tractor is projecting to incur an increase of 20% in their medical insurance premiums – or $100 million – to cover their 44,000 employees and retirees.

http://gretawire.blogs.foxnews.com/did-you-see-this-caterpillar-says-the-health-care-bill-will-cost-them-100-million-dollars/?action=late-new

California and Federal Tax Refunds Overlooked by Many

admin — Tue, 02 Mar 2010 01:23:22 +0000

In today’s challenging economic period, business owners are looking for every way to reduce costs and increase cash flow and profits.

We continue to see businesses and their CPAs overlook extremely valuable tax breaks, including:

- Federal and State Hiring Credits ($500 to $15,000 per employee)

http://www.blakechristian.com/hiring_tax_credits.html

http://www.blakechristian.com/california_tax_incentives.html

- Federal and State Eco/ Energy/ Green Credits (10% to 50%)

http://www.blakechristian.com/energy_tax_credits.html

- Use of Interest Charge DISCs for Export Sales

http://www.alliantgroup.com/_ag/index.cfm/our-services/export-incentives/interest-charge-domestic-international-sales-corporation-ic-disc1/

- Evaluation of Compensation Structure Options to Minimize After-Tax Cash Outflows. This includes taking advantage of the lucrative and flexible qualified retirement plan rules.

http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2008/CorpTax/Compensation.jsp

http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2007/CorpTax/Services.jsp

- Re-Evaluating Legal Structure of Business Operations to Minimize Taxes

http://www.taxguideonline.com/hcvt/

There is still time to claim many of these tax benefits on your 2009 tax returns.

www.blakechristian.com

For Daily Tax and Economic Updates, please follow me on Twitter:

http://twitter.com/taxcredits_CPA

Iceland’s Financial Meltdown Overshaddow’s U.S. – and The World

admin — Sun, 28 Feb 2010 17:02:48 +0000

The international banking crisis which climaxed in 2008 hit the island nation of Iceland harder than any other country. The EU member bailout of IceSave Bank left the 325,000 Icelandic residents with a whopping burden of $5.3 billion.

Home defauls, business failures and general economic chaos has been felt by every resident – and despair has turned into anger on all sides.

Iceland residents will vote this week whether they will opt to pay back these amounts to the EU nation which bailed them out, or default on the obligations. Recent polls show a 60% disapproval rate of paying back these amounts.

Read more in these Financial Times links:

Iceland Voters Set to Reject EU Member Payback : http://www.ft.com/cms/s/0/fc525532-21ae-11df-acf4-00144feab49a.html

Bullying Iceland: http://www.ft.com/cms/s/0/e69c686a-20e4-11df-b920-00144feab49a.html

Obama Updates His Healthcare Plan – Third Time’s The Charm?

admin — Tue, 23 Feb 2010 05:58:11 +0000

$950 billion over 10 years, imposition of excise tax on “Cadillac” medical plans (excluding dental and optical), and expanded Social Security taxes on wages, rent and interest income (yes you heard right) for taxpayer making more than $200,000 (single) or $250,000 (joint).

Read the Heritage Foundation’s summary of the major tax provision:

http://blog.heritage.org/2010/02/23/obama%E2%80%99s-health-plan-has-dangerous-new-taxes/

In preparation for the bi-partisan healthcare conference later this week, President Obama released his revised healthcare proposal, which incorporates portions of both the Senate and House versions passed late last year.

With the recent pick up of a key seat in the Senate (Scott Brown- – MA) by the GOP, the Democrats are scrambling to either win over some Republican votes – or resort to the nuclear option of Reconciliation.

The following link from WSJ summarizes the key points of the latest $950 billion proposal:

http://online.wsj.com/public/resources/documents/WHhealth20100222.pdf

The Democrats are threatening the use of the ”Reconciliation” procedure to avoid additional House and Senate debate and votes. Read about the history and the Reconciliation procedures:

http://www.rules.house.gov/archives/bud_rec_proc.htm

As reflected in the attached articles, there are a number of hurdles to overcome for the two parties to get beyond the current impasse and President Obama’s legacy and the mid-term elections hang in the balance.

Obama’s weekend healthcare video laying out Thurday Summit’s objectives:

http://www.youtube.com/watch?v=g9NMc3gOBr8

Feb. 22, 2010 Washington Post (Blog) – Obama is the Real Obstructionist:

http://voices.washingtonpost.com/postpartisan/2010/02/obama_is_the_real_obstructioni.html

From the U.K. side of the Pond – President Obama Doubles Down on Healthcare:

http://www.ft.com/cms/s/0/586131b2-1fdf-11df-8deb-00144feab49a.html?ftcamp=rss

Obama’s Community Bank Lending Program May be a Slow Go

admin — Fri, 29 Jan 2010 17:47:04 +0000

Durping his State of the Union speech earlier this week, President Obama announced his plan to reallocate $30 billion of the money paid back by the large banks under the TARP plan to smaller community banks.

The plan is to re-direct these funds to small businesses in economically challenged regions.

Only stronger community banks will be allowed to access these funds, which will likely range from 3% to 5% of the bank’s capital. Only banks with less than $10 billion in gross assets will be eligible for a slice of the $30 billion.

In addition to getting a green light from Congress, the additional challenge is whether the community banks and/ or the local small businesses will be financially sound enough to loan or borrow under this proposed program.

Read more in the following Wall Street Journal link:

http://finance.yahoo.com/loans/article/108707/surge-in-loans-unlikely-from-small-business-plan?mod=loans-personl_smallbiz&sec=topStories&pos=6&asset=&ccode=