Most IRS guidance documents make for poor pleasure reading. Then again, most IRS guidance doesn’t effectively impose a retroactive tax on small business owners merely for having a family. IRS Notice 2021-49, issued on August 4, includes a bizarre interpretation of the law that will effectively raise taxes for business owners with close relatives, even if their family members have no involvement in the company.
A core goal of the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed early on in the pandemic was to assist businesses in keeping employees on their payroll even as they dealt with the economic effects of lockdowns. Part of the plan was the Employee Retention Tax Credit (ERTC), which provides a tax credit against employer payroll tax liabilities. Read More
Facebook is spending $100 million to buy up the outstanding invoices of small businesses owned by women, racial minorities, veterans, disabled people and LGBTQ+ people, the company announced last week.
The Invoice Fast Track Program allows certain “small, midsize and diverse-owned businesses” to submit outstanding invoices to Facebook. The tech giant then buys the invoices, giving the business cash immediately, and the business’ customers pay Facebook instead.
The program is designed to help “diverse-owned” businesses improve their cash flow and hire more employees, according to the program’s description. Read More
As President Joe Biden promotes his several trillion dollars in proposed federal spending, Republicans and small businesses are raising the alarm, arguing the taxes needed to pay for those spending plans are a threat to the economy.
The House Ways and Means Committee met Thursday to discuss infrastructure development and in particular the impact of proposed tax increases to pay for it. Rep. Kevin Brady, R-Texas, the ranking member on the committee, argued that only 7% of Biden’s proposed infrastructure bill goes to infrastructure and that raising taxes would incentivize employers to take jobs overseas.
“As bad as the wasteful spending is, worse yet, it’s poisoned with crippling tax increases that sabotage America’s jobs recovery, hurts working families and Main Street businesses, and drives U.S. jobs overseas,” Brady said. “We cannot fund infrastructure on the backs of American workers.” Read More
The Biden Administration sent some stock prices tumbling and left small businesses worried after taking sides on a hotly contested labor issue that critics say could threaten the jobs of millions of independent workers and thousands of small businesses.
In his address to the nation Wednesday evening, President Joe Biden called on Congress to pass legislation that would ban the use of freelance workers in most instances.
A report from the freelance site UpWork found that about 59 million gig workers make up $1.2 trillion of the U.S. economy. Read More
The Golden Horseshoe is a weekly designation from Just the News intended to highlight egregious examples of wasteful taxpayer spending by the government. The award is named for the horseshoe-shaped toilet seats for military airplanes that cost the Pentagon a whopping $640 each back in the 1980s.
This week, our award is going to the United States Small Business Administration and Treasury Department for awarding at least $200 million, but as much as $420 million, to Chinese Communist Party-linked businesses by way of the Paycheck Protection Program, intended to assist U.S. small businesses that were devastated by the coronavirus pandemic, widely believed to have originated in China.
A report from the Horizon Advisory strategic consulting group illustrates how negligible congressional oversight allowed at least 125 Chinese firms to “take advantage of the international disaster” by benefitting “directly from U.S. investment and relief measures.” Read More
Small businesses have been decimated by the pandemic shutdowns. Many have struggled to survive. Many have had to lay off employees. If they haven’t closed their doors yet, the next six to nine months will be a real challenge.
There is some help on the way. The Small Business Administration has released a second round of the Paycheck Protection Program (PPP) — a forgivable loan program designed to assist small businesses with money to stay afloat. Part two of the PPP opened on Jan. 15. Read More
Applications are now open for Michigan’s small businesses impacted by excess rain from Oct. 1, 2019 through June 2, 2020.
The U.S. Small Business Administration (SBA) is making Economic Injury Disaster Loans of up to $2 million available to eligible small businesses, agricultural cooperatives, and nonprofits in Clinton, Gratiot, Ionia, Isabella, Midland, Montcalm, Saginaw, and Shiawassee counties. Read More
More than half of American businesses that closed down due to economic lockdowns are permanently shuttered, according to data Yelp published Wednesday.
There’s been a 23% increase in the number of business closures since mid-July, with the number of permanent closures reaching 96,966, representing 60% of closed businesses that will not be reopening, the data show. Read More
More than 20 percent of small business owners said they will have to close permanently if current economic conditions do not improve within the next six months, according to a survey conducted by the National Federation of Independent Business.
The largest small business association in the U.S., headquartered in Nashville, conducted the survey to assess the financial health of small businesses. Read More
The $670 billion Paycheck Protection Program (PPP) has supported more than 51 million jobs since its launch in April, the Treasury Department and Small Business Administration announced Monday as it released information on 4.9 million loans disbursed by the program.
“The PPP is providing much-needed relief to millions of American small businesses, supporting more than 51 million jobs and over 80 percent of all small business employees, who are the drivers of economic growth in our country,” Treasury Secretary Steven Mnuchin said in a statement Monday. Read More
The coronavirus pandemic has led to the largest drop in small business ownership in the United States, hurting black business owners the most, according to a June study from an economic research organization.
3.3 million business owners are not actively working, and 22% of the closures came during the February-to-April window of coronavirus restrictions, reported Axios, citing a National Bureau of Economic Research working paper. In the whole Great Recession of 2008, small business owners shrank by 730,000 at 5% reduction, the study noted. Read More
The Ohio Department of Health was sued in federal court Thursday for its ban on “non-essential businesses” during the coronavirus pandemic. Read More