Paul Sherman, Chief Operating Officer, Marcum LLP talks about when the waves of recession hit. It’s a quick and thought-provoking clip that I would like to share with you. No charge.
Click the image below to view:
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Is the double-edged sword striking down on that lunchtime chicken salad sandwich? I’ve often wondered when Silicon Valley’s culture of providing meals to employees at all hours–and I’m speaking of Google, Facebook and other companies in this free food mix–would be more of a hot Tax vs. Don’t Tax topic. Well, my friends, that day is officially here.
While this debate has certainly come up in the past, the lunch wagon has it on the front burner again, most likely because the IRS is on a mission to scrape up dimes in the gutter with a putty knife.
Looking at both sides of the controversy, on the pro-tax view of those company-provided lasagnas, smoothies and various cookies, crème puffs and gelatins, I venture to say that the average employee at these companies is enjoying at least a couple of thousand dollars a year in free eats and drinks. That’s clearly compensation and should be taxed.
Now, for the anti-tax view, it can all be taken in the same “de minimis” vein as the free donut and coffee of yesteryear. Why? Today’s work culture has changed. These companies that go to great lengths and costs to establish a high level of perks feel that they must do so in order to remain competitive with recruitment and retention in their respective industries. Few would argue that fact, I think. With that being the case, it doesn’t seem right to tax the free salad bar and barbecue hut, does it? If a Yahoo employee has to declare these edible fringe benefits as compensation, does that really seem fair?
What do you think about this issue? This matter isn’t in the same realm as a public accounting firm bringing in evening meals during busy season…this is a whole other kettle of fish. Drop it like a hot potato, IRS.
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With all of this talk in the recent election campaigns about jobs and growing the economy, it’s interesting to note that the median job tenure for workers age 25+ is rising, according to the Bureau of Labor Statistics. Conventional wisdom says Americans are changing jobs more frequently, but the data shows otherwise. The median worker age 25 or older has been with his or her current employer for 5.4 years, up from 5.2 years in 2010.
Now, according to a Towers Watson survey of 440 midsize to large companies, employer health care costs will increase 5.3% in 2013. Clearly, everyone in Washington D.C. has their work cut out for them—not to mention today’s employers and their employees.
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As an Ohio resident, regardless of who wins the elections on Tuesday, all of us in our house will be thrilled that the relentless marketing efforts in our state will have ceased. It’s been overwhelming, unlike any other election season. I’m not even talking about TV ads and all that of which can be controlled; it’s the telemarketing, huge amounts of direct mail, the people coming to the front door at the house, etc., that’ s mind-numbing and downright irritating as hell.
Given how presidential candidates hopscotch all over the country–inefficiently campaigning, in my opinion–I would never donate to any presidential candidate. Wouldn’t it make more sense to have a strategy of spending two or three days at a time canvassing Ohio, then do the same in Florida, then a couple of days in another state? And we wonder why our government is not a model of efficiency? It makes no sense to be jumping around in multiple states each day; they need to plan a lot better, which would result in tremendous travel expense savings. You don’t have to be a Harvard MBA or CPA to understand that this is wasteful.
Speaking with my 14 year-old son about the election and the accounting profession, I mentioned an article written by thought leader Gary Boomer. My son then remarked, “Gary Boomer? What a sweet name!” Perhaps Gary can use this story in the introduction of his next conference speaking engagement. In the meantime, I might just write in “Gary Boomer” when I vote tomorrow.
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There are a lot of poor people in America. That’s a fact, regardless of what politicians preach or what certain news media outlets bark. What’s even more staggering than any statistics on the number of welfare recipients, homeless or unemployed is the latest measurement that the average Canadian household is $43,232 richer than the average America one. That’s a huge spread—far more than I would have estimated.
I don’t hear Obama, Romney or any other candidate running for office this November talking about how we need to catch up to Canada, our seldom talked about friendly neighbor to the north.
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The New Jersey Society of Certified Public Accountants issued an excellent article last week titled NJSCPA Will Never Forget 9-11. Without question, we all know where we were on that fateful day. I was wrapping up a breakfast meeting with one of our accounting firm’s construction company clients when an eerie silence fell over the restaurant. As we heard rumblings about planes crashing into the World Trade Center, our waiter came over to confirm what was milling about the room. I quickly paid the tab, and then the client and I stepped outside to make phone calls to find out what the heck was going on; we were not alone in this activity outside the restaurant. In those pre-smart phone days, we didn’t have the ease of instantly tuning in the news via what we held in our hand. How technology has changed in the last decade…
I urge you to read this post on the NJSCPA site. As an editor friend of mine commented to me earlier today, “It was a surreal day…and still is.”
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Whether you agreed with Ronald Reagan’s politics or not, you will probably nod in agreement over something he said in a 1986 State of the Union address:
“Never has there been a more exciting time to be alive, a time of rousing wonder and heroic achievement. As they said in the film ‘Back to the Future,’ ‘Where we’re going, we don’t need roads.’”
You gotta love that thinking.
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CCH’s Public Accounting Report stated that Big Four 2011 revenues rebounded to pre-recession levels. Collectively, the four giants increased U.S. gross revenues 7.9% (over 2010) to $38.2 billion. Is this a sign that business is headed in the right direction? $38 billion…just another month for Walmart!
Big Boy Jose has surely felt the whiff of a third strike–again. Former baseball great Jose Canseco is officially broke, filing for Chapter 7 in the Las Vegas U.S. Bankruptcy Court. The former Oakland Athletics (and a bunch of other teams) slugger’s bankruptcy petition lists less than $21,000 in assets and a whopping $1.7 million in liabilities, including over $500,000 owed to our Internal Revenue Service pals. The Chapter 7 filing is a fall from grace for the 48 year-old man who was named the 1986 American League “Rookie of the Year” and the 1988 American League “MVP.”
National Mustard Day is Saturday, August 4. Have a great evening.
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As the Olympics buzz builds, I offer the following on this Friday to help you through the remainder of your accounting work day. Well, maybe it won’t help, but it won’t hurt, either. Enjoy.
•Unemployment in Spain has hit a new high. Almost one in four workers is now seeking a job, according to official figures. The country’s unemployment rate rose to 24.6% during Q2, up from 24.4% during the previous quarter. Geez, maybe things here in the U.S. aren’t so bad after all, huh?
•Last night in the grocery store, I grabbed a cartoon of eggs. Having had more than a couple of mishaps with eggs over the years, thereby gaining the nickname of “Omelette Boy,” I have learned to treat these cartoons as if plutonium was nestled inside. I then realized that to accounting firm clients–both personal and business clients–the handling of their matters from their perspective is along the same lines. To clients, they want their needs–compliance services, consulting, whatever–handled with care, attention and kid gloves. In fact, each egg could be labeled TAX, AUDIT, 10-K, etc. End up cracking or dropping an egg or two and you know where that gets you! (Prison eggs are powdered eggs, from what I hear…and that can’t be good).
•Wrapping up with the other half of the Olympics bookend in this post, iShade wishes Ernst & Young’s Olympian, Gwen Jorgensen*, much success in London. Everyone in accounting is rooting for you, Gwen! Grab the gold!
*several stories about Gwen are on iShade’s BulletIN
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Earlier this week on iShade’s BulletIN–the news section of our accounting community site–I spotlighted the fantastic Ernst & Young report titled “Long-Run Macroeconomic Impact of Increasing Tax Rates on High-Income Taxpayers in 2013.” Regardless of your political beliefs on tax increases, I think you’ll find this a fascinating read. I did, devouring it slowly in the basement a couple of evenings ago. Shockingly, the kids wanted no part of reading it or hearing any findings of the report.
The results of this study indicate long-run economic repercussions should the top two ordinary tax rates and investment tax rates rise as planned in 2013. Quoting the E&Y report: “this policy path can be expected to reduce long-run output, investment and net worth.” Note the word “reduce” in that sentence. This isn’t simply an overt opinion piece from E&Y intellectuals; there’s raw data to back this up. Of course, you can choose not to believe it.
Spout these data lines from the report around your company or public accounting firm if you want to spark some discussion on the matter:
*Changes would translate into a decline in GDP of $200 billion (yes, billion)
*Employment would fall by roughly 710,000 jobs or 0.5% (yes, unemployment would rise)
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The rest of this year is going to sizzle with these tax issues, the election and everything related. Stay tuned to iShade’s BulletIN — THE accounting news source…keep it open on your computer every day.
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