Happy New Year!
This memo is a revision / update to our December 31, 2012 memo as Congress has concluded on some additional items. So if you haven’t read our previous one, you can delete it and read this one. The 2012 tax return process will be delayed due to these last minute changes. The law must be written, then the IRS must update the forms.
I wrote most of this memo on December 21, 2012 and we are still here. So, now we will see how 2013 turns out. As you will read, our view based on working with our clients and listening to various economists, is that 2013 will be a growth year, but 2014 / 2015 might be slightly challenging as Congress will have to deal with the debt ceiling and spending cuts. Global competition still is a large factor for labor costs and states are getting even more competitive with income taxes and incentives to get more businesses in their states. We are telling our clients to be conservatively optimistic. We feel growing ones business and finances conservatively will be the best option due to the uncertainty ahead of us. And if we are wrong, our clients should end up with just more money in their banks.