My last column was a Call to Arms. I wrote about increasing wholesale and retail inflation, AI creating layoffs, and the continuing devaluation of the dollar.
But there’s good news to share as well. The overall economics of the One Big Beautiful Bill Act (OBBBA) are astonishing.
According to PiperSandling…
1 – Their initial estimate showed a $106B decrease in government revenue due to OBBBA.
2 – It looks like the real number could be as high as $148B in tax relief, with $100B in lower income taxes and the other $48B in higher refunds.
3 – The lower income tax withholding on paychecks should amount to around $30B this year alone.
Meanwhile, back at the ranch, the first round of tariff refunds is currently going out.
1 – Oshkosh Corporation CFO Matt Field confirmed to CNBC that the company began receiving tariff refunds as of Tuesday.
2 – Basic Fun, the company behind Care Bears and Tonka Trucks, also told CNBC that it also began receiving tariff refunds on Tuesday.
3 – U.S. Customs and Border Protection said in a court filing that it anticipated paying $35.46B in refunds for 8.3M shipments as of Monday morning.
Let me leave you with this…
When I read these items, my question was, “Will it be enough? Will the money being injected into our economy be enough to offset the money leaving and keep everything moving?”
Dunno. Again, if I had a crystal ball, I wouldn’t need to do tax returns for a living.
We could discuss what the Fed will do to control inflation, our ballooning deficit, or macroeconomics if you like, but the real question remains…
How will this affect our businesses and how do we find our way through these uncertain times?
My advice from last Wednesday hasn’t changed. If anything, these new developments only strengthen it.
1 – Watch your monthly financial statements like a hawk. Maintaining your margins during a period of rapid change like this is job #1.
2 – If you need to raise your prices or cut jobs, get to it already.
3 – Be conservative and put new projects on hold. You don’t want to be left without a chair if the music stops.
When I first bought my sailboat, one of the older captains explained to me that captaining a boat and having a good ride was all about simple math. If you take out five people and bring them all safely back to port, it was a good ride.
Everything and anything that happened in between was irrelevant.
Staying the course when captaining your ship through rough seas is enough. Getting your vessel and your crew home safely is what being a captain is all about.
Plenty of overly aggressive entrepreneurs will make bad choices and go down with their ships. Make sure your still around when they do to pick up all of their orphaned customers.
Whenever you feel crisis in the air, you should also smell opportunity.
As always, when you have problems with your accounting and tax work, please call. We’d love to help.
May God bless you, your families, your businesses, and these fantastic United States of America. For all our difficulties, we’re still the greatest country ever grace the planet.
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 Payroll Services, or Accounting 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
888-310-0300
www.AccountingSolutionsLtd.com
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