The Economic Stimulus has passed and I've had some time to review what's in the bill for taxpayers. In short, there are not many tax changes in the bill. The highlights:
- Rather then sending out a large rebate check as has been done in the past this bill will instead pass out the savings by reducing the amount withheld from your payroll taxes. Most taxpayers can expect to see $400 dollars in savings over the course of year.
- If you buy a vehicle anytime between now and the end of the year you will be able to deduct the sales tax on your 1040. Unfortunately, I bought my new car on January 1st and therefore do not qualify.
- If you are a first time home buyer OR if you have not bought a home in 3 years you are eligible for a $8,000 credit on your taxes should you buy a home in 2009.
As always, there are income limits on these deductions. If you are a single person making $75,000 or a married couple making $150,000 it is likely these deductions will not apply to you.
The only tax policy that I see that could potentially be stimulative is the credit for buying a home. That said, the lower interest rates we are seeing and home prices being reasonable should be enough to increase demand. I'm not sure people will rush out to buy a car simply to save $500 on their taxes and I don't know that an extra $8 or so per week in payroll tax relief will alter anyone's spending habits.
The big fight starts soon as Bush's tax cuts start to expire after this year. If they are not extended we are looking at tax hikes next year.
Thursday, February 19, 2009
Sunday, February 1, 2009
New 1040 Clients to Receive $50 Gift Card to Our Milwaukee
We have expanded a program that was started to reward people who referred us business. Now any new 1040 client will receive a $50 gift certificate to any member of Our Milwaukee of their choice. Our Milwaukee is a group that that supports locally owned businesses and is comprised by many prominent local businesses. A full list of members can be found at www.ourmilwaukee.net.
With the pending closings of businesses like Harry W. Schwartz and Atomic Records we feel that this is a critical time to do what we can to help call attention to many of the great local businesses we have. T
With the pending closings of businesses like Harry W. Schwartz and Atomic Records we feel that this is a critical time to do what we can to help call attention to many of the great local businesses we have. T
Monday, January 19, 2009
Et Tu Bruce? Reason #850 why you shouldn't listen to celebrities.
It was announced today that Wal-Mart will be the exclusive vendor for Bruce Springsteen's latest hits compilation.
It's hard enough for local record stores to survive with the increasing digitization of music, but it becomes nearly impossible when bankable artists like Springsteen, AC/DC and the Eagles start selling their music exclusively at Wal-Mart.
I don't begrudge these guys for doing so. However, Springsteen has fashioned himself as a friend of the working man and takes every opportunity to show his concern for the little guy and rip conservatives and corporations. The reality is that Springsteen is a corporate entity that is only concerned about his bottom line. Again, there's nothing wrong with that, but don't tell us how we should live our lives then.
He had a chance to help independents by selling the disc exclusively through them, but there must not have been as much money in that.
It's hard enough for local record stores to survive with the increasing digitization of music, but it becomes nearly impossible when bankable artists like Springsteen, AC/DC and the Eagles start selling their music exclusively at Wal-Mart.
I don't begrudge these guys for doing so. However, Springsteen has fashioned himself as a friend of the working man and takes every opportunity to show his concern for the little guy and rip conservatives and corporations. The reality is that Springsteen is a corporate entity that is only concerned about his bottom line. Again, there's nothing wrong with that, but don't tell us how we should live our lives then.
He had a chance to help independents by selling the disc exclusively through them, but there must not have been as much money in that.
The death of Harry W Schwartz Books
I wish I could say that the announcement regarding the closing of Harry W. Schwartz Bookshops was a surprise, but I feel that it's merely a casualty of the digital age we now live in. Even Oprah, one of the saviors of the book, threw dirt on the grave with her endorsement of the Amazon Kindle.
We are a Member of OurMilwaukee which is a group designed to support local business and Schwartz was a founding member. To be sure, competition from Barnes and Noble and Borders probably didn't help Schwartz and it would be nice to see more people seek out their bookstores, but it's hard to blame the big boxes on this one.
Perhaps Schwartz had a flawed business model. They operated 4 bookstores so it was difficult to make one a true destination spot like Powell's in Portland. They located their stores (with the exception of the Brookfield store) in non-traditional spots. They took a risk on opening a Bay View location when it was clear to anyone familiar with the area that it wouldn't work.
In any event, the march towards digital media continues. It will not be much longer until the newspaper is not delivered and the CD goes the way of the dodo bird. I thought books might be different. After all a book is a very tangible thing and while the Kindle is a cool looking device I'm not sure how it replaces that feel of holding onto a book. That said, it's been selling like crazy and will continue to be improved.
Two of the stores will remain open under new ownership, but I fear they will only be able to tread water. It's hard to stop the changes in media that have happened.
We are a Member of OurMilwaukee which is a group designed to support local business and Schwartz was a founding member. To be sure, competition from Barnes and Noble and Borders probably didn't help Schwartz and it would be nice to see more people seek out their bookstores, but it's hard to blame the big boxes on this one.
Perhaps Schwartz had a flawed business model. They operated 4 bookstores so it was difficult to make one a true destination spot like Powell's in Portland. They located their stores (with the exception of the Brookfield store) in non-traditional spots. They took a risk on opening a Bay View location when it was clear to anyone familiar with the area that it wouldn't work.
In any event, the march towards digital media continues. It will not be much longer until the newspaper is not delivered and the CD goes the way of the dodo bird. I thought books might be different. After all a book is a very tangible thing and while the Kindle is a cool looking device I'm not sure how it replaces that feel of holding onto a book. That said, it's been selling like crazy and will continue to be improved.
Two of the stores will remain open under new ownership, but I fear they will only be able to tread water. It's hard to stop the changes in media that have happened.
Thursday, January 15, 2009
Estate Tax Likely to Stay
The Estate tax law has been one of the more interesting aspects of the Bush tax cuts of 2001. At the time Bush wanted to repeal the Estate tax, but lacked the congressional support to do so. As a compromise the exclusion amount for Estate taxes has been raised over the decade and the tax completely goes away in 2010 before returning in 2011 with the same rules it had it 2001.
Confused?
I certainly know that Estate planning has become more difficult because no one has known for sure what will happen with the law.
President Elect Obama has come out in support of keeping the Estate Tax with an exclusion amount of $3,500,000 and a tax rate of 45%. Given the current makeup of the congress, this is likely what we'll be looking at. I'd like to see the tax repealed, but at least we know what direction things are heading in.
Confused?
I certainly know that Estate planning has become more difficult because no one has known for sure what will happen with the law.
President Elect Obama has come out in support of keeping the Estate Tax with an exclusion amount of $3,500,000 and a tax rate of 45%. Given the current makeup of the congress, this is likely what we'll be looking at. I'd like to see the tax repealed, but at least we know what direction things are heading in.
Thursday, January 8, 2009
Sick Pay and Heinemann's
Heinemann's restaurant has closed its doors after being a signature Milwaukee business for decades. In listening to the radio this morning it would appear that the sick pay law that was passed in Milwaukee was the thing that caused them to shutter the doors.
While I am against the sick pay law as much as anyone I think people need to be careful in blaming the law for the closing of a business. Heinemann's shut their doors without warning to their customers and their employees which suggest that they had reached the point where they could no longer pay their bills. The sick pay law had NOTHING to do with them shutting down, but the owner did throw that excuse out there as if to make her feel a bit better about being at the head of a failing business. You don't shaft your employees the way Heinemann's did if you didn't have major operating problems.
We can't cry wolf regarding the sick pay law. Some businesses simply fail. That's the way it goes. If there is an outcry every time a business like Heinemann's shutters its doors it will allow proponents of the law to say that business is using the law as a convenient excuse to mask their own failings.
Businesses will close, and many more will relocate, because of this law. It would be wise to save the outrage for those instances where the law is a critical factor in the decision making process rather then falsely blaming it this time.
While I am against the sick pay law as much as anyone I think people need to be careful in blaming the law for the closing of a business. Heinemann's shut their doors without warning to their customers and their employees which suggest that they had reached the point where they could no longer pay their bills. The sick pay law had NOTHING to do with them shutting down, but the owner did throw that excuse out there as if to make her feel a bit better about being at the head of a failing business. You don't shaft your employees the way Heinemann's did if you didn't have major operating problems.
We can't cry wolf regarding the sick pay law. Some businesses simply fail. That's the way it goes. If there is an outcry every time a business like Heinemann's shutters its doors it will allow proponents of the law to say that business is using the law as a convenient excuse to mask their own failings.
Businesses will close, and many more will relocate, because of this law. It would be wise to save the outrage for those instances where the law is a critical factor in the decision making process rather then falsely blaming it this time.
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