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| Will the USA still stand strong after the "fiscal cliff" |
Higher taxes, increased health care costs, worsening economy - what are the positives and what is the plan of action for small business? Small Business Trends compiled information from several media sources, regarding the upcoming so-called "fiscal cliff". We picked out four of them to highlight the general impact to small business.
CBS Evening News said an estimated 941,000 small businesses in the U.S. could face tax increases as high as $8,000 more a year.
Many business owners, according to this article, say this increased
taxation will deprive them of funds they could reinvest in growing their
business and providing jobs. This will ultimately result in slower economic growth, unless sales are extraordinarily strong.
The Washington Post reports - Many small business owners worry the new Affordable Care Act will be anything but affordable, and could end up in lost jobs or shortened hours for employees. Employees may end up footing the cost of their entire healthcare insurance.
According to
The New York Times - Whether lawmakers avoid going
over the "fiscal cliff" or not, small businesses could end up dealing
with the following. Loss of some depreciation allowances for capital
investments, and some work opportunity tax credits, as well as possible
loss of a temporary exclusion of 100% gain on certain small business
stock. The enhanced charitable deduction for donating computers to
schools and libraries could also go away.
The Weekly Standard published an interesting article - A peculiar side effect of a proposal presently on the table in Washington. The report claims the proposal raises marginal tax rates on small business owners (to 39.6 percent on those making over $250,000), but at the same time decreasing the corporate tax rate to 28 percent.
The above findings do not paint a bright picture, so again,
what are the positives and what is the plan of action for small businesses?
First positive is tax deductions for start-ups are still available (reportedly they will even be increased).
A new 10% income tax credit will likely be introduced to counteract the cost of hiring.
Increased government spending for proposed infrastructural developments will likely boost some engineering firms, contractors, and material suppliers.
A new program started earlier this year,
Jumpstart Our Business Startups Act (JOBS) assists small businesses in sourcing financing.
Another positive, the current administration's failings could encourage them to come out with new tax cuts next year. It will likely be a political game (to make one party look better than the other), and it is unlikely they will fully compensate for (potential) increases, but it very will could ease the increased tax burden to some degree.
The importance of marketing, and building better relationships with customers, is greater than ever. Consumers still need your product, and sales must grow to compensate for any increased cost of doing business. User friendly up-to-date websites, online forms for patients, and social media are just a few of the ways to connect better with your customers.
Web design and marketing for small businesses and professionals is what we do. We are focused on making your business, clinic, or organization successful. That is our mission and we put it into practice in huge ways for many of our customers throughout 2012. Here are a few comments we heard this year from our customers and business partners:
After we enacted a new marketing campaign in October, for one of our customers, they said: "November is usually a little slow, but this November was our best ever!"
Another customer: "8 out of 10 calls come directly from our website".
One customer had a slow beginning to the year, but they contacted us to build a new website and work on their online brand management. Since then, sales have increased dramatically. "We attribute all of our increase to the work WORD Web Design did for us".
We are looking forward to the continued success of our business partners in 2013.
