Ka-Ching! Well not so much, but every little bit helps…

One less Reg to deal with.

July 21, 2011 is the date you can negotiate an interest rate on your business checking account based on the Dodd-Frank Act.

A lot of things in the Act address consumer protection but interest on business checking is a plus for us and becomes effective on July 21st.   Treasury Secretary Geithner established the date, so it is highly unlikely that date will be extended.

At one-half of one percent business money market accounts are an unattractive option for businesses.  Couple that with minimum balances and fees they’re simply a nuisance.

Regulation Q goes away and banks can begin paying interest on transaction accounts, principally accounts of corporations, partnerships and other juridical entities. Regulation Q has prohibited banks from paying interest on demand deposits. Don’t ask me why.  Government regulations repeatedly defy logic.   The zero-rate on demand deposits encouraged the emergence of money market funds and other competitive investment vehicles outside of banking.  This could eliminate money market funds and simplify the means in which small businesses manage their cash accounts as we are always juggling funds between accounts, playing the money dance.

Because these are commercial accounts there are no disclosure requirements and banks periodic statements do not have to have the disclosures required by Regulation E and Regulation DD for interest paying accounts.  You should probably contact your bank on July 21 to see what interest rate you will be paying them and how that compares to the bank down the street or online for that matter.

Tax What I Spend… Not What I Earn! Dare Big Gov to be Fair!

It’s time to look towards major reform.

The question in my mind is why hasn’t Congress and the President embraced The Fair Tax, also known as HR-25, filed in the last several Congressional sessions?
This is also legislation the NFIB should support.

Here’s how the FairTax would transform our nation.

– Federal personal and corporate income taxes, estate taxes, gift taxes, capital gains taxes, the alternative minimum tax, Social Security and Medicare taxes plus self-employment taxes vs a simple, national sales tax on new goods and services (there’s a Fair Tax calculator at the bottom of this post – check it out).

– 67,000+ pages of tax code and regulations the IRS even gets wrong vs 133 pages in The Fair Tax Act

“If the FairTax were passed tomorrow it would be the biggest transfer of power back to the people in the history of this country because Congress controls us by taxing us,” Rich Giambruno, a Fair Tax advocate said…

– A loophole ridden tax code due to special interests vs getting the same deal as the next guy

– Spending $300,000,000,000 to figure out taxes every year vs looking at a shopping receipt

– $2,000+ per taxpayer costs due to current evasion vs everyone paying in front of the cash register

– Politicians and lobbyists divide and conquer with exemptions and social engineering vs one clear rate for all Americans beyond the poverty line

– Class warfare through the tax code vs the right, left and center against the self interests of Congress

– Regressive payroll taxes off the top of your earnings vs truly not paying taxes on necessities

– Paying Washington before you see it vs pay-as-you-go taxes only on what you choose to spend

– Declining Social Security solvency vs a strong base of revenues and cost of living indexing for seniors

– Guilty until proven innocent vs IRS free sales taxes

– IRS intrusions vs simple cash register payments

– Charitable giving with only 30% receiving tax write-offs vs a $2,100,000,000 giving increase due to 100% pre-tax donation dollars in a booming economy

– Increasing indebtedness vs FairTax free home, auto, credit card, etc payments on current debt

– A mortgage interest deduction claimed mostly by the wealthy vs 19% lower costs of home ownership

– High college costs vs education 100% tax free thereby lowering college costs almost 50%

– Stagnating wages vs 10% 1 year real wage growth

– A sluggish economy vs 2.4% additional first year GDP growth and 11.3% higher by the 10th year

– Small business owners paying three times more to prepare taxes than actually owed to Washington vs tax free earnings and fees to collect the FairTax

– Stock market malaise vs tax free stock purchases with no capital gains taxes

– US manufacturers at a worldwide corporate tax disadvantage vs American exports competing fairly

– Trillions of dollars held offshore due to high US taxes vs tax free investments back into our economy

– Cascading taxes on products when raw materials are harvested, items are manufactured, shipped and sold at retail in addition to corporate taxes vs one flat tax rate at the point of final consumption

– More US jobs to China vs the Made in America label

– $10 billion IRS budget vs collection fees to states

– Documenting, measuring, and tracking income for tax purposes until April 15th vs just a spring day

– Source FairTax Friday Weekly Newsletter

National Federation of Independent Business (NFIB)

I consider myself an entrepreneur.  My business, Integra Business Systems, was incorporated in March, 1988.  Our slogan is “advancing the paperless office.”  We develop enterprise content management (ECM) software also known as document imaging, or the electronic file cabinet.  Our customers include financial institutions and the financial services industry.  Our customers eliminate paper by digitizing documents by scanning paper or capture and archive “born digital” documents. Born digital documents include Adobe Acrobat (PDF) documents, Word, Excel, Google Docs, email, etc… We have 30 employees and growing.  We are a private, closely held, self-funded small business.

I believe the freedom and the success small business owners are blessed with and enjoy here in the USA, is based on the entrepreneurial spirit; individuals driven by God, family and freedom, the foundation America.  I believe my business and thousands of small businesses like Integra, make up the heart and soul of our great country.

I also believe you get out, what you put into something.  I discovered the National Federation of Independent Business (NFIB) several years ago while I was stumbling through some of our Human Resource (HR) issues.  The NFIB Employee Handbook available to members, opened the door to our long-term association.

The NFIB became a reliable source of content related to the needs of a small business in areas to include HR, finances, sales and marketing, legal and regulatory issues.  Like all small businesses, all these areas are costly and difficult to navigate alone.  While I cannot advocate the NFIB as a replacement for professional consultation and their services, the NFIB serves as an affordable surrogate source and Garmin-like resource for small business.

I realize this sounds like a “paid ” endorsement.  The only shameless promotion here is my own.  In fact, any involvement you have or partake upon with the NFIB is entirely up to you.  Like I said, “You get out, what you put into something.”

NFIB President Dan Danner

Towards that end I want to share with you what I think this is the best and most timely message to the public with regard to understanding the plight of small business and the economy that anyone could have delivered to this president and the rest of the politico in DC.

There is so much smoke and mirrors coming from the media and the Obama administration with regard to small business, I just wish more media outlets would have published this message (follow the link) from Dan Danner, NFIB president.

Note:  Please help us get the good word out.  Share us on your favorite social media site and Stumble Upon.  Thanks.

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