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TARP, Part II (Deux)

October 21st, 2009 Leave a comment Go to comments

Economic Stuff
They said today that the Economic Stimulus Plan would be targeted at Small businesses. You know as a small business consultant and an accountant, I have considered that the SBDC does what I do FO FREE. They are the public arm of the SBA. You know the Small Business Administration: those people who give you a loan when everyone on the block would already give you LOAN, Duh? The hoops they put you through and the lead time to funding you had best ask dad for a advance on the inheritance.
Yeah, like we ( the Taxpayers) who bailed out the Hedge Funds, the Bankers (like B of A and Wells Fargo need my help raising consumer interest rates), with no strings, and no teeth. I heard some pundit with the NYT saying Paulsen “did a good job” and I almost choked. A good job? What, bailing out his friends with no strings? Yeah, I good Job for THEM. For us, small business owners, no Love. Now they have a few Billion dollars left and maybe they realize the Economy is still in the Pits, and now they are trying to help the small businesses. I’m from Missouri, if you get my drift…
What would actually help the Economy?
Since the friggin pundits think the Recovery has already happened, they are not going to say anything is other than rosy. I, on the other hand, lost my largest client in August (for being too vocally honest & hiring a CPA to help them, who stole my client out from under me) and have been living cheaply, and hoping someone in Washington does something. Like what, exactly?
How about Unemployment?
Unemployment: Increase the monthly benefit, include self employed person who prove their revenue are down by at least 40%. We self-employed pay self-employment taxes, don’t we? Then raise the Monthly Unemployment from $960.00 to 2,500. If they loan (ahem, GIVE) money to Vulture Capitalists to cover their bets on the downside, why can’t we give some help to poor people who actually need some help? Besides, we pay wayyyy more taxes to the States and the Federal government per dollar earned than they do.
About those Juicy TARP Bonuses
Why don’t they pass a special bill to raise the Ordinary Income taxes on those who got bonuses under TARP? Why not increase the OI tax rate on TARP Bonus from max 36% to 75%? And make them pay Social Security on ALL the earnings, not just the first 106,800. Why leave anything on the table with these greedy folks. That way if they wanna keep their bonuses, they can pay through the nose. Oh, and make it so they cannot offset this income with ANYTHNG ELSE? Do not leave any loopholes: the guys who wrote TARP were asleep at the wheel, but the barn door is not closed until they file their 2009 1040s, which is April 15th, 2010. ( May I mix more metaphors, please, sir?) We still have time, Folks. You know I am only a lowly tax accountant, but I have seen enough high net worth tax returns to see what REALLY EXPENSIVE CPA firms do so that the rich guys do not pay any taxes. Tighten up those loop holes, Dude!
Back to the SBDC and the SBA
That is the Small Business Development Corporation, and the Small Business Administration. These guys are retired execs from Fortune 500 Companies who give away the services that I do away for free. They teach people that the only way to succeed is to act like a multinational corporation ( yeah, buy crappy CRM software and treat employees like cattle ,ship jobs abroad and sell the business to a VC and then get out). Why don’t they actually take some risk and really help people start jobs HERE, and take a bit of Equity in exchange for Capital? Why aren’t they giving MicroLoans ( don’t brown people do that?) instead of telling people unrealistically “ pay down your credit cards…? If people could get loans, they would not have to use their Home Equity Lines (who has one lately, do you?) and their credit cards. If the Federal government is willing to bail out the Fat Cats, with zero accountability, why not help the small guys with a bit of risk involved?
Just a thought. Ok, more than one.

Addendum: Sat thru a three hour seminar at SBDC this AM by Paula Groves-Hawthorne: awesome. She is worth the time and money- her email paula@acsbdc.org. The panel afterwards was lame: she is top notch. A VC with a heart, who would have thought?

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