Democracy Is Built On The Backs Of The Middle Class
I received several responses to my communication about the proposed tax increases from Friday basically making statements like, “Sure, but how does this affect me?” The problem is that it might affect you even more than its intended target.
Yes, it’s true that most, not all, of the tax changes affect the top 1% of the taxpayers. Yes, it may also be true that this isn’t you,
But the problem is that voters vote with their feet.
This has always been a problem, but the situation has been exacerbated in recent years given the ability of people to operate businesses virtually.
If you had a business that could be operated virtually and you were facing tax increases like these, why would you stay put? There might be something holding you back, like children or ailing parents, but without that why stay?
I’ve had three sets of clients move in the past year to places with a smaller tax burden and less problems with crime. Can you imagine how many more will leave if this crippling tax agenda is put into place?
Thank God I have a federal license so that I can still help these people. I have the same rights and privilege’s anywhere that the IRS has jurisdiction, not just Illinois.
My point is that these clients who left are your clients too. They buy gas at your station, food at your store, and their kids go to your nursery school. When they have plumbing, electrical, or roofing problems, they call.
Go ahead and try to tell me that increased taxes on these people won’t affect your bottom line.
Let’s also remember that these people were all one percenters. They spent way more than your regular customers and didn’t even complain when they saw a bill.
One of the economic concepts that you should understand is the concept of a money multiplier. It’s the fact that whenever a new dollar comes to a community it’s multiplied by a factor of four.
Let’s use an example. A new family comes to your community, starts a business, earns a dollar and spends it. That dollar then goes to someone else, and it’s spent, again and again and again.
Each new dollar actually becomes four, but the opposite is also true. When a dollar leaves a community, you don’t just lose one. You lose four, and these people were one percenters. They spent way more than just one.
And who is hurt the most? Its the people left behind; in other words, you.
These tax increases could affect you way more then their intended targets.
Let me leave you with this.
I read an article over the weekend talking about a Twindemic, which was the first time that I’d heard the term. It refers to the probability of the regular flu and the Delta variant hitting our population at the same time this fall.
We may have forgotten about the regular flu, but it’s still out there. The mitigation factors that were put into place last year stopped most of it’s spread.
But those factors aren’t in place this fall.
The article went on to advise everyone to go in and get a flu shot while they still could. It stated that there might be such a demand for shots in a month or two, that they might be hard to obtain.
This didn’t sound like bad advice to me. If I were you, I’d be encouraging all of my employees to go in now.
Think about the implications. It’s early November and one of your employees comes down with the regular flu. Normally this wouldn’t be something that anyone would worry about, but now we have to.
The symptoms of both flus are basically the same. How does anyone know which one they have, so they have to stay home, get tested, and you lose money.
The situation potentially gets even worse if they don’t stay home.
Let’s get as many as we can a flu shot as soon as possible.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Employee Retention Credits, PPP Loan Forgiveness, Payroll Services, or Bookkeeping and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
www.AccountingSolutionsLtd.com
Note that the only professional services provide by Accounting Solutions Ltd. are those specified in a written communication from our office detailing the scope of services to be rendered and the terms and conditions applicable to the engagement.