Senator Joe Manchin (D. W.VA.) announced on a Sunday morning news program that he would not vote for the Build Back Better bill, effectively ending any possibility of the program passing in its current form. In deep sixing the bill, he effectively put an end to all of the meaningful proposed tax changes for 2021.
That being said, most of the tax advice I’ve given for this year doesn’t need to change, which could all change tomorrow. Congress could whip something up overnight, but I doubt it.
This doesn’t mean that nothing else will pass for 2021. I’ve had tax seasons where they were still passing relevant legislation as late as the third week of January.
If it happens, I’ll keep you posted.
In further news, a bi-partisan group of House Representatives introduced the Employee Retention Credit Reinstatement Act. The bill would reopen the credit for the fourth quarter of 2021.
With Congress deadlocked, we’ll see if it goes anywhere.
Let me leave you with this.
I’m sorry that I haven’t been able to write recently. December is the busiest month of the year for me, given our need to do tax planning.
Crook, sorry, Cook County passed a grave milestone this morning. They reported a 7-day rolling average on new covid cases of 4,704. This surpassed the highest ever reported daily average from November 17th, of 2020. Back then, the average was only 4,654.
Gird your loins my Brothers and Sisters. This Omicron thing is just getting started.
The good news is that our elected officials have obviously resolved to try to keep things open this time. ICU bed availability in Chicago sits at 12.3% today. At the height of the pandemic last November, when everything was shut down, it was somewhere around 25%.
The Tribune has reported that the main reason for this dip in availability is a personnel shortage. Doctors and nurses in ICU’s, grew tired of working double shifts.
They did what any reasonable person not wearing a cape with a “S” on their chests would do. They found other employment.
That being said, we need to be ready for whatever is coming.
Will the hospital system be overwhelmed? Probably. Will they again reintroduce shut down procedures? Again, sadly probably. The numbers are increasing too rapidly.
Does this mean that the government will again reopen additional CARES Act money? If they shut things down again, they probably won’t have a choice.
From a political standpoint, it might be the smartest thing the new administration could do, given its most recent defeat. This would end the deadlock in Congress, given the fact that it would also be supported by both sides of the aisle.
The biggest problem I see in the future is entrepreneurial fatigue. After two years of this nightmare, we all face a potentially even greater enemy.
You need to get your head around this. Don’t ever think that we won’t get through it. We will. Is it going to be hard? Yes. Is it going to be a good time? No, but we will get through it one way or another.
Make good use of the coming holiday. Rest, spend time with family, feed your soul, rejuvenate. It’s obvious that given the pandemic and the ever-present inflationary fears, that the next few months will be difficult.
Don’t ever think that you’re alone. We’re right there with you. Shoulder to shoulder. Let us know if there’s anything else that we can do to help.
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 Accounting and Tax Work, you have but to ask. I’m here and I remain,
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