Call us if health care bill will affect your business
November 28, 2007
So who here knew that a health care expansion bill snuck through at the last second of the special session? It was not one of the highest-profile issues of the marathon, three-week legislative blitz overshadowed by the slot machine debate and measures to raise $1.4 billion in new revenue.
But it could be important for small business. Legislative analysts wrote that a plan to subsidize employee health coverage for small businesses could help add 15,000 people to the rolls of the state’s insured, with a price tag around $30 million.
The coverage isn’t for everyone - just businesses with between 2 and 9 employees that want to offer insurance with “wellness” options like health club membership assistance. And the source of the money is not necessary solidified forever. It could change within a few years.
Will this affect your business? If it doesn’t, do you think you’re being unfairly left out? Or is this a good start on helping small businesses keep their workers healthy?
I’m working on a story about this for Friday. Want to get in on it? Call me at (443) 524-8175.
-ANDY ROSEN, Business Writer
Sphere: Related ContentTaxes? What taxes?
November 27, 2007
In its latest edition, Business Week has published a list of 50 companies that paid the least corporate taxes over a five-year period as part of an article on the impact of proposed reforms to corporate taxation. Maryland had only one company on the list — in the top 10 no less: Bethesda-based private equity firm American Capital Strategies.
The company, which has a piece, in part or in whole, of companies like Piper Cub, Rug Doctor and football helmet maker Riddell, had an effective tax rate of 1.8 percent. That put it eighth on Business Week’s list.
According to Business Week: … “because it’s a Regulated Investment Company under IRS rules, it owes no federal income taxes so long as it distributes most of its taxable income and capital gains to shareholders. The short version: the company paid very little to Uncle Sam while distributing $454 million in dividends to shareholders.”
Just because American Capital had a low tax rate, should it be a leading example of why the country needs corporate tax reform, or is it a prime example of how a free market should work?
-BEN MOOK, Assistant Business Editor
Sphere: Related ContentLocal IT industry up in arms over new taxes
November 21, 2007
As of Monday morning, legislators agreed to levy a 6% tax rate on “computer support services, data center support, custom programming, consulting and disaster recovery services.”
I know, that’s not news to you.
What is, is this: the state’s IT industry (along with small local businesses and workers) is angrily asking, “What gives?”
After all, “The IT industry is … helping to maintain the competitiveness of Maryland’s businesses.” So says Roger Cochetti, a director at the Computing Technology Industry Association.
Roger keeps going, telling InformationWeek:
“Just at the time that most cities, states, provinces, and countries around the world are encouraging the computer industry to locate there, the Maryland Assembly and Governor chose to discourage the computer industry from locating and providing services in the ‘Free State,” he said.
Cochetti said the tax could encourage Maryland IT users to outsource computer services…. He called the move one of the “least informed and most harmful actions ever undertaken by the Maryland State government.”
Do you think that more companies will keep IT in-house to avoid paying these taxes to local outside vendors? Or outsource operations? Would you?
-JACKIE SAUTER, Multimedia Editor
Sphere: Related ContentTaxes, taxes, taxes
November 19, 2007
When reporter Andy Rosen was preparing for the weekend ahead on Friday, no doubt he knew it would be a long one.
And it was.
From Annapolis, he filed updates from the Special Session for the web on Saturday and Sunday; an updated story, which he filed at 2:45a.m. this morning, was posted to our Web site today.
The conclusion of the marathon session? Lawmakers agreed to raise $1.4 billion in new taxes, including sales tax expansion, a rise in the corporate income tax, and increased personal income taxes for the wealthy.
Reactions?
-JACKIE SAUTER, Multimedia Editor
Sphere: Related ContentDoes the IRS owe you dough?
November 15, 2007
According to the Internal Revenue Service, there are 115,478 people out there who are due tax refund checks. The missing checks were ones returned to the IRS as undeliverable.
The IRS says the average check is $953 and a claim can be filed online or over the phone after you update your address.
Follow the link to the IRS Web site and check for yourself.
To update your address you will need to give them your Social Security number, how you filed (married filing jointly, single, etc…) and the exact refund amount from the tax return. You can also call 1-800-829-1040.
-BEN MOOK, Assistant Business Editor
Sphere: Related ContentArcades, computer services, landscapers: what do they have in common?
November 7, 2007
They’re all the new targets of the sales tax increase.
Reporter Andy Rosen writes today:
The Senate Budget and Taxation Committee tossed aside the governor’s proposed extension of the sales tax to cover massage, health club and property management services. In the face of stiff opposition from those interests, the panel instead voted to tax computer services, landscaping and arcades.
Looks like those gym petitions added up.
But why choose these three?
And how much money can there be in arcades these days?
*Update 4:40p.m.* It’s come to my attention that the Comptroller’s office will decide which businesses are classified as “arcades.” Does this make Peter Franchot the Arcade Czar?
-JACKIE SAUTER, Multimedia Editor
Sphere: Related ContentTaxes on steam baths: will you stand for it?
November 1, 2007
The services which are proposed additions to the sales tax are on file in the Governor’s bills in the House and Senate, and some Marylanders disagree with the selections.
They are:
-Real property management service
-Tanning, massage, physical fitness, sauna, or steam bath facility
The AP reports that real estate agents and health club owners rallied Thursday against the bills.
Real estate agents argue that the tax shouldn’t be applied to them, because housing is a basic commodity like food … Opponents of broadening the sales tax to include fitness clubs followed the real estate agents with a State House protest. They chanted “no health tax,” and asked why O’Malley wanted to tax people who want a place to exercise.
It’ll be interesting to see who else comes out of the woodwork when hearings begin on the pair of competing House bills.
House Bill 18 puts forth tattoo artists and body piercers as potential tax revenue. House Bill 11 would add a laundry list of services, including pay-per-view TV, car washes, escort services and cobblers.
What do you think should be on the list?
-JACKIE SAUTER, Multimedia Editor
Sphere: Related ContentDoing the minimum
October 29, 2007
The U.S. Congress is doing its best to do nothing with the alternative minimum tax (AMT) yet again. It seems the tax that was intended to affect only a certain higher-income tax bracket will hit a larger swath of taxpayers than it did last year. What’s the reason? No adjustment for inflation.
Is there a reason for not having this adjustment that a regular accounting-impaired individual like myself could understand? Better yet, does anyone think the AMT will ever simply do what it was intended to do?
Of course, our representatives and senators have known all year long that this had to be dealt with, yet it’s still on the books with no real resolution. So, now the IRS is only a few weeks away from having its paperwork and software ready for this upcoming tax year, and our lawmakers’ inaction or action will have serious consequences.
Either more income-earners fall under the AMT than last tax year, or the whole filing process is delayed from the get-go (due to new forms and software required to deal with congressional changes) if Congress does the unexpected — and does something.
-FRANCIS SMITH, Special Publications Assistant Editor
Sphere: Related ContentMarylanders Thinking Green?
October 25, 2007
Who wants to help support the cleanup of the Chesapeake Bay and its tributaries?
A new poll suggests most people in Maryland do. Better than four in five of the 500 residents polled on behalf of the Chesapeake Bay Foundation said making the nation’s largest estuary cleaner should be a state funding priority, the group announced Thursday.
The results come as the foundation pushes for a new fee on hard surfaces to support a “green fund” to the tune of around $85 million per year. The money would help the state meet commitments it made with other states in the watershed to reduce pollution by 2010.
But it may be tougher to get businesses and large property owners to pay 1 cent per square foot of hard surfaces. Those who own big houses (more than 3,000 square feet) in the state would pay $40 per year into the green fund, while a warehouse owner could pay up to $5,500 per year.
One side says this is fairer than previous green fund plans that would tax new construction — and say the bay needs the money.
Others say it’s still to costly, especially for folks like food retailers — given other taxes that are on the table right now. What do you think?
-ANDY ROSEN, Business Writer
Sphere: Related ContentGotta spend money to make it?
October 3, 2007
As the governor tours the state bemoaning a looming budget crisis, the Maryland Department of Business and Economic Development took a field trip to New York Tuesday.
The purpose of the trip was to sell Maryland as a place to do business. The tab for this jaunt to the Big Apple: $11,000.
The old adage is that you have to spend money to make money, but is spending $11,000 to wine and dine Big Apple bigwigs worth it when schools are getting funding cuts? Or should we look at it as an investment that will bring business to the state and grow our coffers with corporate taxes?
Can you do both? How do you balance the two?
Let us know what you think…
—LOUIS LLOVIO, Business Writer
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