Tag: Small Business

One More Stim Bill

That title would make a great blues tune…..but that is just wishful thinking on my part.

Yep we have yet another stim bill that will help the economy to try and live through this pandemic….

Congress and the White House reached a deal on a new $484 billion coronavirus relief package in late-night talks and it sailed through the Senate on Tuesday. The package includes around $310 billion for the Small Business Administration’s Paycheck Protection Program, which ran out of money last week after approving at least 1.7 million loans. It also includes $25 billion for coronavirus testing and $75 billion for hospitals, along with $60 billion for emergency disaster loans, the Hill reports. Leaders from both parties hammered out the deal with Treasury Secretary Steven Mnuchin and other administration officials. “The Senate is continuing to stand by the American people,” said Senate Minority Leader Mitch McConnell after the measure passed unanimously.

This is the fourth coronavirus relief bill, and the second-largest. Around $60 billion of the money for small businesses will be earmarked for “under-banked” neighborhoods and rural areas. President Trump said he would sign the measure. “I urge the Senate and House to pass the Paycheck Protection Program and Health Care Enhancement Act with additional funding for PPP, Hospitals, and Testing,” he tweeted, adding that after he signed the bill, discussions would begin on fiscal relief for state and local governments. Rep. Steny Hoyer, the House majority leader, said the House would vote on the measure Thursday, the AP reports. He said the House would also vote on a measure to allow proxy voting while the COVID-19 pandemic continues, a measure that some GOP lawmakers oppose.

The big selling point was that this plan would help rescue small business…..some will get a little assistance but there are some multi-million dollar corporations that will siphon off these funds as well……

Companies with thousands of employees, past penalties from government investigations and risks of financial failure even before the coronavirus walloped the economy were among those receiving millions of dollars from a relief fund that Congress created to help small businesses through the crisis, an Associated Press investigation found.

The Paycheck Protection Program was supposed to infuse small businesses, which typically have less access to quick cash and credit, with $349 billion in emergency loans that could help keep workers on the job and bills paid on time.

But at least 94 companies that disclosed receiving aid since the program opened April 3 were publicly traded, the AP found, some with market values well over $100 million. And about 25% of the companies had warned investors months ago — while the economy was humming along — that their ability to remain viable was in question.

By combing through thousands of regulatory filings submitted through Monday, the AP identified the 94 companies, or their subsidiaries, as recipients of a combined $365 million in low-interest, taxpayer-backed loans.

https://apnews.com/6c5942eec36cc43b25ad5df5afebcfbd

The term small business is used to make this bill more confusing….the funds are not so much for the Mom and Pop operations but rather those multi-million dollar corporations that have NO contingency plans for times of chaos.

My opinion is “tough nuggies” let them suffer…..they put the future in jeopardy to make stock trades to make them look better than they are.  Let them die!

A true small business needs to be helped….corporate maggots do not.

I Read, I Write, You Know

“lego ergo scribo”

Closing Thought–17Apr20

One of the sad things around the Covid-19 is the loss of small businesses….here I am talking about the Mom and Pop operations that are being hit the hardest by the pandemic.

But not to worry the government is here to help…..with some stim money and interest free loans and I am sure something other or else…..

But sadly all is not going well for the help these businesses need…..

Millions of small businesses are barely staying afloat amid the coronavirus pandemic, and the feds are offering help—but getting that help is another thing, the New York Times reports. Two federal efforts, the Paycheck Protection Program and the Economic Injury Disaster Loan program, are both low on funds and swamped with requests. The Paycheck program is embroiled in a partisan political battle on Capitol Hill over how to add another $250 billion, per the Washington Post, while applicants to both programs are fighting red tape or waiting for their funds. It’s a huge topic, but here’s a primer and a few tips for applicants:

  • The Paycheck Protection Program has $349 billion to incentivize banks to grant small-business loans. The loans need to be repaid at an interest rate of 1% over two years unless certain metrics are met for retaining employees—at which point a loan is forgiven by the feds, per the Times.
  • The Economic Injury Disaster Loan Program is designed to offer loans up to $2 million, but recent applicants say the cap is now $15,000 as requests flood the program. According to a fact sheet, the interest rate is 3.75% for small businesses without available credit elsewhere, and 2.75% for non-profits.
  • The Times advises Paycheck applicants to apply in off hours and remember two things: It might be better for companies with workers who are higher-paid or can work at home; and worse for businesses that don’t know when they can re-open, like restaurants and bars.
  • Forbes gives hard-hitting advice “to avoid going to prison” over a Paycheck program loan. Stung by fraud related to Katrina, TARP, and other programs, the feds will prosecute scammers.
  • At BizJournals, expert James Lozano suggests asking a bank or credit union for advice before proceeding with either program—and says “larger small businesses” might want to apply to both.
  • My biggest advice is take away the fear,” Tennessee realtor Matt Golley tells WAAY TV. “Let someone else walk you through the process and tell you what you need and make sure it’s submitted correctly. I don’t know how to submit documents like that to the government and the bank took care of that for me.” Golley says he’s been approved with the Paycheck program but hasn’t seen the money.
  • Whatever path is taken, expect frustrating delays. “Essentially, there’s a massive bottleneck in trying to get this money, incredible demand and not the ability to get it out,” says a reporter on PBS Newshour.

Another clusterf*c k this pandemic has created and the government has little solution……

Watch This Blog!

I Read, I Write, You Know

“lego ergo scribo”

Closing Thought–22Aug17

Good CEO, Good President!

For decades the GOP has been pushing candidates that have been successful businessmen/women…there premise is that if one can run a business with all its intricacies then they should be a success as a president….I have NEVER thought that was an accurate statement….but low info voters buy into the BS every time.

The election of 2016 has pretty much put that BS line to bed…..

If you were wondering exactly how Anthony “The Mooch” Scaramucci was able to weasel his way into the White House, you have to recall that he wasn’t only a Donald Trump sycophant; he was also touted as a businessman who could “fix” problems career politicians couldn’t.

Source: How the Demise of the Trump Administration Could Finally Kill the White House CEO Fantasy | Alternet

Every day Trump proves just how inept he is at governing….he likes to think that he is a successful CEO and that government can be run like his businesses in NYC…..without some governmental experience then the job becomes overwhelming…..yews there have been successful business men that have made it as far as president….but each one has had some rudimentary experience in running a government.

Naivete…..amateurs cannot successfully run a government as complex as that of the United States.

Time to back off and start considering the direction for tomorrow’s posts….see you guys tomorrow with more stuff…….chuq

Rates Or Reform? Part Two

Yesterday’s post we saw that the reforming of the tax code will be the most logical answer in the search for revenue….and that the deductions and loopholes that apply to the individual will most likely not be part of the solution…….if not them, then whom?

The next sector to look at are the small businesses for answers to the reform questions.  Let’s look at the major deductions that are within the tax code…….

Allowable deductions include:

  • Employee wages and most employee benefits
  • Rent or lease payments
  • Interest on business loans
  • Real estate taxes on business property
  • State, local and foreign income taxes assessed to your business
  • Business insurance
  • Advertising and promotion costs
  • Employee education and training
  • Education to maintain or improve your own required business skills
  • Legal and professional fees
  • Utilities
  • Telephone costs
  • Office repairs

1. Start-up Cost Deductions

You can deduct up to $5,000 in start-up and $5,000 in organizational costs for the first year of business. These deductions apply to expenses paid or incurred after Oct. 22, 2004. The rules differ for expenses before that date or if your costs exceed $50,000. Expenses that are not deducted can be amortized over a 180-month period, which begins when you open your business. You can write off or amortize market research, advertising, employee training, business-related travel, legal advising and other costs.

2. Education Deductions

The IRS has strict guidelines for deducting educational expenses, so be sure to read Publication 970, “Business Deductions for Work-Related Education,” thoroughly. Generally, employers can deduct employee educational expenses if the courses maintain or improve job-related skills, or if employees need the education to continue in their current jobs. If you are self-employed, you can also write off some educational expenses. Transportation to and from the classes may be deductible. You can’t write off any educational expenses that train you in a new field, however.

3. Vehicle Deductions

Auto deductions are clearly delineated under IRS rules and tend to be among the more scrutinized items, so meticulous record-keeping is critical. You can deduct vehicle expenses either by the mile (for tax year 2006, the IRS allowed a deduction of 44.5 cents per mile driven for business purposes) or for actual expenses such as gasoline and maintenance. If you use your personal vehicle on the job, keep careful records about where you went and the nature of your business. You also can write off a newly purchased vehicle (even if it’s bought second-hand) in one deduction or through depreciation, which lets you write off parts of business equipment costs over several years.

The IRS stipulates that personal auto use cannot be written off as a business-related expense, so be sure to follow the guidelines in Publication 463. If your employees are using a business car for personal use, the IRS wants you to record the value in their W-2 forms or wages. For credits, keep an eye out for environmentally friendly IRS initiatives: You could receive up to $3,150 from the government if you have purchased a hybrid for your business since 2005. Check out Form 8910 for more details.

4. Equipment Deductions

Small businesses can take a single deduction of up to $108,000 for equipment purchased in 2006. The deduction falls under Section 179 of the tax code and is reduced if those equipment purchases exceeded $430,000. The deduction in prior years was only about $25,000; in 2007, it will rise to $112,000. As of now, however, the higher deductions are only good through 2009.The equipment doesn’t have to be new, as long as it’s newly purchased and will be used at least half of the time for your business. Equipment includes computers, machines, furniture, cars and a host of other necessities. Movable equipment generally counts; property does not. You will need to fill out Form 4562 to take the deduction. Businesses that choose not to take the immediate deduction can write off portions of their equipment purchases over several years through depreciation.

5. Entertainment Deductions

The IRS doesn’t mind your mixing business with pleasure – within reason. You can deduct up to 50 percent of entertainment expenses for unreimbursed business meetings. The entertainment must be within a “clear business setting” (such as at a conference) or should immediately precede or follow a business meeting. If you are self-employed, the 50 percent deduction limit does not apply.

6. Travel Deductions

Unreimbursed travel expenses are tax-deductible. The IRS recommends keeping a log of your expenses and receipts. Transportation, (such as airfare) lodging and even dry cleaning can be deducted, and half of any business meals. You also can deduct expenses for business associates traveling with you. You can’t write off expenses for family members or friends if they accompany you, unless they are employees and are professionally involved in the business end of the trip, but it is fine to deduct your part of the trip if it is for business.

7. Software Deductions

Software normally must be written off over three years because it will serve your business for more than one year. Section 179, however, allows small businesses to fully deduct off-the-shelf software the year it is purchased, as long as it is used the same year.

8. Charitable Deductions

Partnerships, S corporations and limited liability companies all require that their members file the company’s taxes on their personal forms, including charitable donations. Donations are “passed through” members, like the organization’s income. C corporations are entitled to corporate deductions.

Individuals can deduct between 30 percent and 50 percent of their adjusted gross income to qualifying 501(c)(3)charities and foundations. Corporations can deduct up to 10 percent of their taxable income, according to the Better Business Bureau’s Wise Giving Alliance. If you want to contribute $250 or more and receive a deduction, you must have a letter from the organization verifying your donation.

If your business makes a non-cash donation, such as giving a car or a computer, figure out how much you can deduct. The deduction will decrease if you’ve already received a tax break for the donated property or if it has lost significant value. Check both Publication 551 and the Section 179 deduction.

9. Advertising Deductions

Advertising and promotions directly related to your business are deductible as miscellaneous expenses. See Publication 535 to write off advertising and other costs.

10. Legal and Professional Fee Deductions

Accountant and attorney fees are deductible as business expenses, but you cannot deduct professional fees for purchasing business assets such as equipment. Those charges are included as costs of the purchase. Sole proprietors can write off fees from tax professionals on Schedule C or Schedule C-EZ. For sole proprietors, any additional expenses can be deducted on Schedule A of your 1040.

Now there is a whole other post on who is a small business……..the official definition is any company with 500 or less employees……..will these be asked to close their business loopholes?

Hell, NO!  Dems will try to protect the “Mom and Pop” business and the Repubs will protect the larger ones……so these entities will be protecting from any loss of deductions……

Now we have eliminated the individual and his/her deductions and the small businesses that everyone believes is the engine of the economy, at least that is the slogan they want us to latch onto…….so…..who is left?

Part three will be tomorrow and will look at the large corporations and their loopholes…….

Small Busisness To The Rescue

I hope that people are listening………I am sorry to be redundant but……..

Just how many times have you heard the crap from the GOP and from the president?  Small business creates all the jobs in this economy…..I have tried to help the people realize what a pile of bovine fecal matter the politicians are handing you….they are force feeding you erroneous information….and now it is not just me that is telling the voter what crap it is but Bloomberg’s Business Week…….

While extolling small business “might be a good way for politicians to win elections,” Bloomberg Businessweek notes that “the notion that small business is the force behind prosperity is not true.”

“Most small employers are restaurateurs, skilled professionals or craftsmen (doctors, plumbers), professional and general service providers (clergy, travel agents, beauticians), and independent retailers. These aren’t sectors of the economy where product costs drop a lot as the firm grows, so most of these companies are going to remain small.”

Read the article closely……..learn what is meant by small business….to the politicians they want you to believe that an oil company that employs a 1000 workers with $7 million in income is somehow a small business….not so!

The Little Engine That Could

Today is one of my days of Zen, but I feel that I must for go those days because of the events in the past week demands that I stay on topic…….hopefully I can return to my whimsical posts on the weekends that have very little to do with the politic doings of the week…….bear with me for I am a sick puppy…….

We have heard both sides of the jobs debate calling the engine of the recovery will be small businesses….that any taxes will harm the recovery and kill those small businesses……and we cannot have that….now can we?  And then there was Obama’s new proposal to give tax cuts to small businesses that hire new employees…….

When you hear Obama or his opponents, the Repubs, mention the small businesses….what do you think of?  (pause here for a moment or two for thought)………I would bet that you think of that Mom and Pop grocery store on the corner of Main and 5th…..or maybe it is that cute little bakery in the walking mall……or how about that liquor store on the way home that you get relief from the day’s hassles…..am I close?

All in all you would be close but unfortunately….NO CIGAR!  Yes Mom and Pop would be a small business….but then according to the SBA so would a cigarette maker that employs 1000 people……I know…..huh?

The SBA Act also states: “…a small business concern is one that is independently owned and operated and which is not dominant in its field of operation.” Size standards vary by classification. The average standards, by occurrence in the SBA table, are 500 employees or $7 million a year in sales. A very general rule-of-thumb is the size of most manufacturers and wholesalers is determined by the number of employees while the size of the remaining businesses are determined by yearly receipts.

So you see about 90% or more of the companies in this country can be considered small business, as per the SBA definition……so when the Repubs talk about helping small business they are really talking about the larger companies…..you see….they are lying!  And when Obama talks about the tax cuts and incentives to get small business to create jobs…..he is talking about larger companies…..for they both know that a true small business doing its part even in this recession…..what they need is to help the larger companies enhance their profits with the hope that if they do that that they will hire a few people……

In closing…..it is a play on words…..it is a scam!  They are only helping those that can help them.  Mom and Pop are just the hook to get you to side with the larger companies…….it helps them sound like they are on your side…..but that is a lie!  It is ALL a lie and the sooner you realize that, the sooner we can start doing something about all the BS from Washington…..

Help For Small Businesses

Recently, our president has issued a massive challenge to the GOP in an effort to help small business and as we know….they are the engines of our economy (or at least that is the slogan these days)…it is election time and all the silliness has come to a head….small business is getting more attention that some idiot in Florida…..

Massaging the egos of the small business owners….both parties are not being forthcoming with the truth…..

But will these benefits create the demand that is needed to bring this economy back?

The problem with the small business tax breaks is two-fold: small businesses are incredibly diverse in their craft, and consequently, no single break works for every small businesses. The second issue with the proposed tax breaks is that many in the business see them as too producer driven, as the Small Business Job Act fails to address (and encourage) some much-needed consumer spending. Simply put, businesses do not need more equipment to produce items that are not selling, or selling at lower levels than in the past.

As Billy Rys explains, “Even if they’ll be able to write off their investments in just a few months, they don’t have the customers coming through the doors. They don’t have contracts to fill.” In the end, the usefulness of the proposed tax breaks will depend on the size and type of businesses, in addition to the financial state of the business.

I have been bitching since this whole debacle started with the economy….the Bush bailout only accomplished bank liquidity and the Obama stim plan was to help create demand……neither one of these plans have created the demand needed to jump start the economy….if tax cuts do not make inventories go up then No one will be hired…..if NO one goes shopping then NO amount of tax cuts will jump start the economy…..without DEMAND there will be NO easy recovery…..it is not rocket science!

The Economic Engine Of The US

From the VOMITORIUM

It is all so much BS!

We have hear all the attacks on the Prez and his jobs agenda….all the crap about it is small business that creates all the jobs and that small business should be a priority for the Obama admin……you have heard it all…….the Dems are failing the American people by NOT emphasizing small business and the creation of jobs…..

But wait!  The Repubs have a better idea right?

From the AP:

Senate Republicans in the United States blocked a bill to increase small business lending Thursday, dealing a setback to the jobs agenda of President Barack Obama.

The bill would create a $30 billion (U.S.) government fund to help community banks increase lending to small businesses, combining it with about $12 billion in tax breaks. Democrats say banks should be able to use the lending fund to leverage up to $300 billion in loans to small businesses, helping loosen tight credit markets.

Then if small business is the engine of our economy, why would they block a bill to help loosen up credit for the small businesses in this country?  Good question…..

Much of the bill had bipartisan support, but Senate Republican leader Mitch McConnell of Kentucky said Democrats were blocking GOP amendments.

What would those amendments be?  Glad you asked……

GOP amendments included measures to beef up border security, impose a government spending cap and lower the estate tax, which is scheduled to return next year with a top rate of 55 per cent on estates larger than $1 million.

One Republican amendment would repeal a new tax reporting requirement for businesses that was included in the massive health care overhaul enacted last spring.

The amendments have NOTHING to do with small business….if the GOP is so hot for the small businessman then why would they scuttle a bill that would help the businesses and jobs?  It is an easy one to answer……politics…..nothing short of politics…it is NEVER about loosening credit for small business…it is about seeing that the Dems have nothing when it comes election time…..this screwing of small business helps Repubs and does NOTHING to help the American people…..Can you see the game for what it is now?

You want an idea of how the deficit expands so rapidly?  Earmarks!  You know those add-ons to bills…..the pork……what does border security have to do with small business?  What does a spending cap mean when you add on so much new spending?

Special interests and pure gamesmanship and small business is just a pawn in this elaborate game of politics…..

The Wrong Direction

Inkwell Institute

Subject:  Economics/Budget Deficit

Paper #7

For many months now we have heard, endlessly, Repubs saying that the country is headed in the wrong direction….and that our ruin is near……(you know…kinda like that guy on the street corner holding a sign that says, “Repent!   The End Is Near!).

We have heard it all….well…almost all….the ideas are flying out of the mouths of politics….both Left and Right are jumping on the bandwagon.

All GOP office holders and candidates are saying that the Prez and the Dems are taking the wrong path for a successful end to the economic cancer in this country….while I may agree in principle…I seriously doubt that the Repubs have a success direction either….

First of all, I ask ALL Repubs where is the Prez going wrong?  Is it health care, or the environment or financial reform….just where is the wrong direction?  Secondly, what is the GOP’s idea of the right direction?…..(pause for thought)…….okay stumped?  They say that they are all for the small businesses that employ most Americans…..so far so good…but if you define what the small business is in general terms, what would it be?  My guess would be the Middle Class.

If the Middle Class is sort of synonymous with small business then we should come to the conclusion that the GOP should be concerned with the plight of the Middle Class, right?  Well you would be mistaken………the following information was found on the site themiddleclass.org…..it is the site of Drum Major Institute for Public Policy, which tracks all of Washington’s doings that would effect the Middle Class….

The most vocal opponents of Obama are Reps Cantor and Boehner and Rep. Ryan of Wisconsin has been called the rising star in the GOP and a brilliant budgetary analyst…..so where do these guys stand on the Middle Class when it concerns legislation that would help?

I will start with House Minority leader, John Boehner of Ohio…….themiddleclass.org has been keeping tabs on the House and Senate since 2003……from 2003 to 2008, Boehner got an “F” every year and son far the score for 2009 has been 8% of the time in favor of the Middle Class, final score will be in by 04/2010.

How about Rep. Eric Cantor of Virginia?   Since 2003, he has also received an “F” every year…….and so far the score for 2009 is 13% he has voted in favor of Middle Class issues…April will give us his final score….but so far it does not look good.

Now we look at the economic genius of the GOP, Rep. Paul Ryan of Wisconsin……in 2003 the middleclass.org gave him a “D”……..but from 2004 to 2008 he got an “F”…….and for 2009 he has got 13% of his time helping the Middle Class….

Those were the three most out front Repubs,,,,they always talk about the American people and what they need and yet they do little to help the largest class in America.  But I want to be fair so I wanted to look a the Dems in the Congress…..for contrast I chose my Rep in the House who is a “Blue Dog”, Gene Taylor of Mississippi……themiddleclass.org score Taylor thusly……2003 a “B”, 2004-2007 a “C”, 2008 he got a “A” and so far in 2009 he has voted 68% of the time in favor of the Middle Class….he is not a barn burner but at least he seems to be on the side of the Middle Class……

Do not believe me….go to blogroll and click on The Middle Class and see for yourself or check out your reps….almost in every case you will see that the GOP has NOT voted favorably for the Middle Class…..Repubs are LYING!  They show NO concern for the plight of the Middle Class!

Check it out…….themiddleclass.org

Do not get me wrong….I HATE paying taxes……but logic says if I want the services from the government…then I need to suck it up….I also hate to work….but we all do for the same reasons…..what I truly do not like is the fact that we pay taxes for those services and we get crap in return….that is where I have the problem….

Fraud Is Fraud

For years I have heard all about the “welfare queens”, you know those people that defraud the government on assistance programs like food stamps, welfare payments, etc.  Oh, the outrage at finding one of these offenders.  Then more recently it has been the CEOs of banks that have been the target of the people’s rage.  You know all those massive paychecks they got for killing a company or the massive benefit packages they got.  LOts of outrage from the average person.

I just thought I would add to everyone’s rage with this tidbit.

For anyone who wants to know where underfunding and under-staffing of the Small Business Administration leads, check out this report from the U.S. Government Accountability Office.

The GAO writes of rampant abuse of the SBA’s HUB(Historically Underutilized Business)Zone program, which awarded $8 billion in federal contracts to some 4,200 certified small businesses in 2007. Specifically, the report details misrepresentation by 19 companies that falsely claimed HUB status to qualify for nearly $30 million in prime contracts and $187 million in federal contracts between 2006 and 2007.

According to the report:

“One Alabama firm listed its principal office as ‘Suite 19,’ but when GAO investigators performed a site visit, they found the office was in fact trailer 19 in a residential trailer park. The individual living in the trailer had no relationship to the HUBZone firm.”

The same company, which performs ground maintenance, received nearly $1 million in HUB contracts between 2006 and 2007, the GAO says.

Small businesses that participate in the HUBZone program must meet various criteria, including having a main office and at least 35% of their employees living in the zone. The report blames lack of SBA internal and fraud controls, including failure to make site visits to a majority of the companies applying for HUB status.

Another excellent program that has fallen into crap.  I point this out because I would like to see “fair and balanced” report on ALL fraud not just some little old lady in Peoria that is trying to make a buck extra.