Illinois is the latest state—along with California and New York—to buckle under the weight of its debt. Illinois's unpaid bills and Minnesota's late corporate tax refunds are a problem for small businesses.
Yesterday, Oregon voters ratified two tax increases, one on high earners, and another a revision of the state's corporate income tax. This is their strategy for plugging an enormous budget gap, like the ones that have opened up in state budgets around the country.Conservatives, predictably, say this heralds disaster for the state, as the rich and corporations flee. Liberals, predictably, view this as a victory. Which is it?My thoughts:
Governor Pat Quinn rammed through the largest tax hikes in Illinois history last year. On January 13, 2011, Governor Pat Quinn signed off on a 67% hike in personal income taxes and a 46% hike in corporate taxes.
The result is not what the governor thought. Businesses have fled, more have threatened to leave and Quinn responded with sweeteners. Moreover, Illinois pension plans are still the worst funded in the nation, and the state is still struggling to pay bills.
So just how much does corporation tax contribute to Government income? Why is the rate so hotly contested – and what can SME operators learn from examining the way the Government manages its finances?
Corporation tax in the UK
Essentially, corporation tax rates come down to global competitiveness – or perceived global competitiveness to be more precise. Headline rates can influence business decisions on where to base their overseas operations, and influence the desirability of making investments domestically.
IRS waives late payment penalties for returns containing delayed forms. If you can’t file or pay taxes on time, it’s always better to extend your return while you round up the information or the cash. The penalty for filing a late unextended return is 5%, plus an additional 5% for every additional month of late filing. The penalty
The latest Black Knight HPI report shows what I call the "Uneven Housing Recovery". Nationally, prices are up 4.5% from a year ago, and down 0.1% from last month. Variances are wide.A few pictures will explain what I mean. Biggest Movers This Month
New research carried out by FreeAgent has revealed that for every working hour that an average freelancer or small business owner bills their clients for, they will actually spend an additional 30 minutes doing work that they won’t charge for.
FreeAgent’s in-house data lab analysed information from more than 30,000 of the company’s small business customers and found that – when users recorded the time they spent on work-related projects – every 90-minute chunk of time would only include an hour of “billable” work that they invoiced their clients for.
Over the past weekend, Italy's caretaker cabinet formally approved plans to begin paying its overdue bills to domestic suppliers and service providers. Its official arrears have aggravated underlying problems, such as access to credit by small and medium size businesses, who are the main creditors. The problems of the SMEs has also contributed to the rising non-performing loans of Italian banks.
OTTAWA — It’s a $60-billion venture for the federal Conservative government.
That’s the estimated amount of tax relief Prime Minister Stephen Harper’s government has offered up to businesses in Canada since taking power in 2006 — reducing the country’s corporate tax rates to some of the lowest in the world.
The government maintains the widespread corporate tax relief has been an answer for the sluggish Canadian economy — spurring investment and job creation, while putting tax dollars back into the pockets of business owners, taxpayers and shareholders.
Over the last year, I've frequently lamented the United States' increasingly absurd position on corporate taxes - maintaining one of the highest corporate tax rates in the world and routinely demonizing standard international business tax practices, while other countries (like Canada) are racing to eliminate tax burdens in order to enhance their domestic companies' global competitiveness. Unfortunately, the last few weeks have produced a depressing cavalcade of similar news.