Early Saturday morning, the House passed the new administration’s $1.9T relief bill. There are many tax provisions in the new bill including but not limited to
1 – An increase in the Federal minimum wage to $15 by 2025.
2 – An extension of the $300 per week additional federal subsidy for unemployment benefits until August 29th. The current additional benefit runs out on March 14th.
3 – A $1,400 recovery rebate or $2,800 per married couple depending on your income. An additional $1,400 rebate would be tendered based upon the number of children in the family.
4 – An additional $15B for EIDL Grants
5 – Another $25B for restaurants and bars
6 – Another 1.25B for the Shuttered Venue Operators Grant
Given parliamentary procedures, the same bill will not be presented to the Senate. The problem in the senate was the minimum wage hike. Given the change in the bill, if it does pass the Senate, it will need to be reconciled and voted on once again for it to be passed into law.
Stay tuned. We’ll see what they can get done, if anything.
Let me leave you with this.
I’ve had some interesting conversations with some of you that I would like to expand on.
Whenever a politician gives with one hand, they’ll find a way to take with the other. Sooner or later the other foot drops. Even politicians need to find a way to balance the books.
They’re coming. Don’t kid yourselves my brothers and sisters. Given the extreme numbers that are being given out and the fact that the new administration campaigned on the fact that they plan on raising taxes, they’re coming.
I have two pieces of advice.
1 – Don’t leave money on the table. I don’t care how well your business is doing, if they are offering and you qualify in some way, take advantage of the stimulus act money. Trust me. They’re going to find a way to take it back from you later.
Take the emotions out of the decision. This isn’t a matter of pride. It’s business. Get in line for the government cheese now.
2 – If there is a way to pay taxes now rather than later, pay them now. If you can include something legally on your 2020 returns that could have legally been pushed onto 2021, deal with it now. Taxes aren’t going to be going down.
Take care of it with the lower income tax rates while they still exist. The new administration hasn’t spent one minute thinking about cutting spending. All of this money is going to have to come from somewhere.
Please realize that democracies are built on the backs of the middle class.
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. If there is anything we can do, whether you are a current client or not, your have but to ask. I’m here and I remain,
Accounting Solutions Ltd.
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