Survey Realization

[jophus14]

I just finished the survey sent out by Jeff and I was surprised by how much we have been affected by this slow time in the architectural field. I knew things were slow, but to see the numbers make the situation much more of a reality. I'm not sure about your company, state or country but it would good to discuss how things are going elsewhere in the world.

[Devin Johnston]

Well I'm in Texas and we have a better economy than most of the country and we're still laying people off because work is very hard to find. What's making it worse is the fact that we are having to compete with not only our regular competition but now with international firms who are desperate for anything. I don't see things improving for quite sometime and I think things are going to get a lot worse because small businesses are about to be hit with a ton of new taxes come next year.

[jophus14]

The new taxes are going to put a hurting on both small businesses as well as the "average joe" worker.

[Jonathan Sanchez]

Well I'm in Texas and we have a better economy than most of the country and we're still laying people off because work is very hard to find. What's making it worse is the fact that we are having to compete with not only our regular competition but now with international firms who are desperate for anything. I don't see things improving for quite sometime and I think things are going to get a lot worse because small businesses are about to be hit with a ton of new taxes come next year.

 

Devin... forgive my ignorance, I don't really mingle with all the politics stuff...... which new taxes are going up next year? Not that I'm doubting you, it's just that I just heard the president give a speech about giving "further" tax cuts to small businesses.

[jophus14]

Here you go:

 

In just 120 days, the largest tax hikes in the history of America will take effect. They will hit families and small businesses in three great waves on January 1, 2011:

 

First Wave: Expiration of 2001 and 2003 Tax Relief

 

In 2001 and 2003, the GOP Congress enacted several tax cuts for investors, small business owners, and families. These will all expire on January 1, 2011:

 

Personal income tax rates will rise. The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which two-thirds of small business profits are taxed). The lowest rate will rise from 10 to 15 percent. All the rates in between will also rise. Itemized deductions and personal exemptions will again phase out, which has the same mathematical effect as higher marginal tax rates. The full list of marginal rate hikes is below:

 

- The 10% bracket rises to an expanded 15%

- The 25% bracket rises to 28%

- The 28% bracket rises to 31%

- The 33% bracket rises to 36%

- The 35% bracket rises to 39.6%

 

Higher taxes on marriage and family. The “marriage penalty” (narrower tax brackets for married couples) will return from the first dollar of income. The child tax credit will be cut in half from $1000 to $500 per child. The standard deduction will no longer be doubled for married couples relative to the single level. The dependent care tax credit will be cut.

 

Higher tax rates on savers and investors. The top capital gains tax will rise from 15 percent this year to 20 percent in 2011. The top dividends tax rate will rise from 15 percent this year to 39.6 percent in 2011. These rates will rise another 3.8 percent in 2013.

[Devin Johnston]

That's exactly what I'm talking about Joseph thank you. We've also got the new health care plan coming online in the next few years that will again increase costs "taxes" on small businesses which employs about 60% of all workers in America.

[leoA4D]

This is a horrible subject for a cg thread. As you have presented the upcoming draconian tax increases, the equally draconian causes for the tax increases should be noted, too. Such as, the nearly $1 Tr. Iraq war, tax breaks for the top 2% and large businesses, the wild spending from 2000 thru 2007, and the collapsed economy due to small government (deregulated banking, mortgage and investment industries). We all hate taxes but realistically, how else can we get back into the black? Furthermore, you think the upcoming tax changes are bad? Wait, in one year the overdue bills will be the same or greater except individuals and small businesses will be expected to pay a greater share because the top 2% and large businesses will be loopholed out of their share.

 

Ugh!

[Jonathan Sanchez]

Joseph/Devin,

If the President gets his way, those tax breaks will continue for all making under $250,000, which I'm pretty much sure it's all of us here. Someone making above $250 a year is not your "average joe":

"The president also is seeking an extension of most of the income tax cuts passed under former President George W. Bush while letting the breaks for households making more than $250,000 annually expire."

http://www.bloomberg.com/news/2010-09-03/obama-pledges-new-measures-next-week-to-boost-u-s-economic-growth-hiring.html

 

Also, from what I've read, the president is working to delivier another set of tax breaks for small businesses: http://www.cnn.com/2010/POLITICS/09/03/obama.economy/index.html.

 

Devin, the health care taxes will take a couple more years to begin, more towards 2014, and if you are offering your employees health care now, there won't be much of a difference then, as a matter of fact, you will probably end up paying less vs. not having had the health care reform bill (though there is much argument about this)

 

Correct me if I'm wrong in any of these statements guys, and I'm not trying to start a liberal vs conservative debate, I myself am neither (though I definitely stay away from FOX news :-). I'm just trying to get the facts straight about what we can expect for the future

Edited September 3, 2010 by sancheuz

[Chad Warner]

I'm pretty sure Jonathan's correct. The tax breaks are only set to expire this year, and I would bet money any congressman or Senator who's up for re-election in November will do everything in their power to make sure those breaks stay right where they're at.

 

I do know that the healthcare overhaul is already starting to wreak havoc though. Our insurance guy told us we got off lucky with our 10% increase in premiums. He said about 80% of his clients got hit with a 50% increase or more in premiums so the insurance companies could cover their @$$es when all the new rules start to take effect.

[Justin Hunt]

one way or another the only way the debt will be paid is by the average Joe.

 

Back on OT, the last tax year I was down 50% on the previous year. I did the same amount of projects but smaller jobs and the bigger ones was near impossible to get payment and write off allot of bad debt . So far this tax year I have almost covered last years losses and this is only the first quarter. Things are on the up, but still very unstable.

 

I think OZ was pretty lucky to get through the worst of it, but that is mainly because we had a decent surplus to spend. Now we have to pay it back.

 

jhv

[BVI]

Here you go:

 

In just 120 days, the largest tax hikes in the history of America will take effect. They will hit families and small businesses in three great waves on January 1, 2011:

 

Taxes, Shmaxes - lets all go to the Caymann's.