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Archive for November 2009

Outlook for 2010 – let’s take a poll

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This week I am going to change things up a bit and add a poll to my blog and let you voice your opinion on the economy.  First, I will offer a few words on my outlook for 2010.   

The consensus appears to be that 2010 will be a recovery year with fits and starts in the first quarter perhaps showing some job growth.  The entire year forecast is for GDP growth of 2.0% – 2.5%.  Most will cite that fact and state we are going to have a jobless recovery which will keep the unemployment rate by year’s end at 9.5%.  Even the Federal Reserve is forecasting an unemployment rate in that range.  The truth is, I don’t know and am certainly less qualified than the team of economists employed by the Federal Reserve.  I will tell you this; there are 3 things that I consider important factors in the strength of the recovery.

1) The rapid and massive job cuts that began during the Fall of 2008.  Perhaps the magnitude and swiftness of cuts will indicate a similar reversal.

2) The decades of consumer spending is a hard habit to break.  This meltdown will not teach a lesson to the majority of spenders that fuel the economy.  This was not the great depression.  I believe if they have access to credit they will spend.  Access to credit leads me to item 3.

3) Will banks begin to lend to all the spenders out there?  A lot of this depends on the Federal Reserve. Banks can now borrow at near zero and make decent margin on government securities with no risk.  Why extend credit?

Enjoy the poll, and have a great week.


Written by pacelinebiz

November 30, 2009 at 7:38 pm

Posted in Business

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Over the river and through the woods…Happy Thanksgiving!

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Thanksgiving is here and Christmas is just around the corner.  That could only mean one thing – a humorous (hopefully) look at what Americans will be doing over the Thanksgiving Holiday.  Below is a list according to my unscientific poll:

Over the holiday weekend…

14% of Americans will eat a sugary dessert and then feel bad about it.

26% of Americans will cut someone off on the way to the mall inciting a profanity laced response.

39% of the above profanity laced responses will include at least one gesture.

47% of those gestures will be obscene.

55% of Americans will lie about their Mother in Laws “good” cooking.

62% of Americans will fall asleep on the couch watching football.

71% of Mother in Laws will lie about their Son in Laws good parenting “skills”.

85% of Americans will use their credit card to make a gift purchase they don’t want to make for a person they don’t like.

93% of Americans will immediately read the sports or comics in the Sunday paper.

100% of Americans deserve a nice long weekend.

I hope all of you have a safe and restful holiday.   Please take some time to be thankful.  Despite all of the economic problems we have in America, we are better than 95% of the rest of the world because we have a roof over our heads, clothes on our back and food in our stomachs.

Written by pacelinebiz

November 23, 2009 at 9:04 pm

Save Money Now With Year End Tax Planning

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This week’s topic will be short but can save you money.  It is now the time of year to start taking action to save on your tax bill.  If you are a business owner, tax expense is one of your biggest line items after payroll.  A C-Corp manufacturing company that has $100,000 of taxable income will have a federal tax bill of $22,250. If taxable income is $335,000 the tax bill will be $113,900 – a 34% flat rate.  For your information, I have included the tax rate schedule for 2009 below:

Income range       Tax Rate     Tax

0-50,000                     15%         7,500

50,000- 75,000        25%        6,250

75,000 -100,000      34%        8,500

100,000 -335,000    39%      91,650

If you are considering your individual taxes, there are many reasons to plan as well.  Some of the basics of tax planning involve your ability to shift income forward or backward depending on your anticipation of future events.  For example, if this year will be a down year for income due to the economic conditions, consider delaying some itemized deductions into the next year when you may have higher income.  This can be done for mortgage interest, real estate taxes or even charitable contributions to name a few.  Also, consider bringing forward those items to get the deduction this year if you anticipate lower income next year.  One other thing I urge you to do is to look into some of the tax breaks that were enacted as part of the stimulus act that passed earlier this year.  There may still be time to take advantage of these provisions. 

Perhaps this is the year to consider having your 1040 prepared by a CPA firm.  The amount it costs to have your tax return prepared professionally may well be offset by deductions and credits unknown to you.  Take the opportunity now to save on your future tax bill.  Do it today!

Written by pacelinebiz

November 16, 2009 at 8:22 pm