Debt Ceiling Negotiations Have Big Effect on Small Business

If the debt ceiling negotiations fail, and the United States defaults on obligations everyone will see a double digit increase in their interest rates on borrowing ,and the value of the US dollar will experience even further decline. Food and energy costs have already taken a hit because of the acceptance of the US government that the US dollar should  be devalued  because of our poor credit rating. Failure to accept a debt ceiling will unleash unlimited  interest rates on any borrowing by US companies and also result in further price increases for commodities such as energy,food, and precious metals.

This means that any borrowing by small businesses will result in an increase of double digit basis points on any type of borrowing, be it lines of credit or debt secured by hard or soft assets.

According to Steve Wynn this will be another “wet blanket” on business formation and job growth.

 

 

 

 

Mitigate Tax Penalties and Interest By Paying On Time

 

If you calculate and pay your tax liability in a timely manner before the end of the year you may avoid tax penalties and interest for late payments which you would incur if you waited to pay them with your annual tax return.

Penalties and interest for late payments and late filings may amount to hundreds or thousands of dollars depending on the size of your business.

Let us insure that your tax liabilities are paid on time during the year to avoid IRS and/or MADOR penalties and interest.

Call Blaine at (978) 604-4253