Ellen McIlhenny - “The Smart and Savvy Exit – Why a CPA Should Be Part of the Exit Team”
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Last week the Senate passed their version on the 1.9 trillion-dollar stimulus package which must go back to the house for approval before going to President Biden’s desk for a signature.
While I am aware that this pandemic and the ensuing shutdowns have wreaked havoc on nearly everyone, I continue to have great concern about the disregard both sides of the aisle have for the fact that our national debt is closing in on thirty trillion dollars, a number that is incomprehensible to most of us. To put it in more understandable terms, the debt per United States citizen is roughly $85,000, and about $224,000 per taxpayer. I don’t know about you, but I don’t have that kind of money laying around. Which means, the government is now spending the hard-earned money of people who have yet to be born.
The reason I mention the disregard is there is always much more packed into these relief bills than should be necessary. Just to give you a rundown of the current state of the bill:
A couple of big changes from the original proposal; a $15 federal minimum-wage mandate is gone from the bill and the eligibility rules for the $1,400 stimulus payments have been narrowed. They also added a full subsidy for the health-insurance premiums of laid-off workers through September.
On the stimulus checks the third round of payments would be $1,400 per eligible individual. Singles earning up to $75,000 will get the full amount, with the payments phasing out completely by $80,000 in income. Couples making up to $150,000 will get the full $1,400 per person, with the amounts zeroing out by $160,000 in earnings. Children and adult dependents in those households are also eligible for $1,400 payments.
The legislation includes $160 billion for COVID-19 vaccine and testing programs. The plan includes money to offer free vaccinations shots to everyone regardless of immigration status.
$350 billion in aid for state, local and territorial governments. There is still debate on what the rules for qualification will be for these governments.
There was a last-minute addition of $10 billion for infrastructure, including broadband, and $8.5 billion for rural hospitals.
Extension of supplemental unemployment benefits. An increase of weekly federal benefits to $400 from $300 and extends it through the end of August.
The plan would provide paid leave benefits up to $1,400 per week and additional tax credits for employers with fewer than 500 employees.
The bill would expand tax credits for low- and middle- income families.
$170 billion to help schools to open. The money on the last stimulus for school opening has not yet been spent, so this one has me scratching my head.
Beyond that there is about $170 billion to help K-12, colleges, and universities with staffing.
The legislation would extend the eviction and foreclosure moratorium through September. $45 billion to help low-income households who have lost jobs pay rent, mortgages, and utility bills. $5 billion to states and localities to offer emergency housing. This is in addition to the aforementioned help for state and local governments.
$14 billion for eligible airlines and $1 billion for contractors to the air carriers. The legislation also includes $8 billion for airports.
Finally, the legislation would include a mere $25 billion to help restaurants struggling from pandemic lockdowns and closures and $1.25 billion for venue operators. There is also another $15 billion for targeted EIDL and an additional $7.25 billion for forgivable PPP grants.
My issue here is that what will get this economy rolling is small businesses getting back to their businesses and they almost seem to be an afterthought in this bill. The original plan of a $15 minimum wage would hurt small business owners. The extension of unemployment benefits will hurt small business owners. As I mentioned last week surveys show that one of the biggest concerns for the small business community is the availability of reliable and affordable labor. We saw last summer a shortage of labor linked directly to the rich unemployment benefits plan that came with the first stimulus package.
Let’s continue to try to make our voices heard.
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Show Objectives - The Why
Today we will be talking about how important it is to have a CPA on the exit team.
1. Your financials – the compilation, review, and audit.
2. Minimizing Taxes
3. Federal State and Foreign Taxes (if applicable)
4. Property and Real Estate Taxes
5. Sales and Payroll Taxes
6. Estate Taxes
7. Why or why not pay for a full audit.
8. CFO and CPA; what is the difference? And Do I need both on the team?
Find My Podcast at https://pod.co/future-financial-confidence-with-ellen-mcilhenny
Next Week: Episode 11 of Season 4 – What to look for in a Buyer.
Written by Ellen McIlhenny
Owner of CFO Plus Services, a Fractional CFO services firm which also offers Back Office Bookkeeping Services. Author of the business novel The Big Turnaround; How Bad Management Nearly Destroyed an Exceptional Company. Check it out at https://thebigturnaround.com
You can connect with Ellen on any of her #cfoplusservices platforms or firstname.lastname@example.org
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