Sparks Team Training Call for Monday December 10, 2012
We discuss the Fiscal Cliff and how it relates to your AMSOIL Business.
The fiscal cliff which I’ve been hearing and reading about for over a year is recently being mentined in the news. I keep thinking how this is an advantage for myself and our home based business.
The fiscal cliff is a looming tax increase beginning on January 1st 2013. If all the components to this go into effect this will be the largest single tax increase in the history of our country. When you hear tax cliff you will want to think this is really a tax cliff.
Middle-income families will pay an average of $2,000 more in taxes in 2013. Many itemized deductions will be subject to phase-out, and popular tax credits like the earned income credit, child tax credit, and American opportunity credits will be reduced. 401(k) and other retirement accounts will be subject to higher taxes.
Some items we talked about:
- Rollback of the Bush era tax cuts which included lower tax rate and a reduction in dividend and capital gains taxes as the largest components. These are set to expire at the end of 2012 and represent the largest part of the fiscal cliff.
- Estate and gift tax exemption of $5.12 million will also drop, to $1 million. Currently, the tax on estates valued over $5.12 million is 35%. After the fiscal cliff, a 55% tax rate on estates over $1 million will apply.
- Obama Care taxes start to apply to households.
- $500 billion tax increase overall.
- Look for an increase in unemployment in 2013
- Look for another recession in 2013
What does the Fiscal Cliff mean to those that have a home business?
The good news is that as a business owner you have several options to overcome increases in taxes.
- Your ability to grow your income higher and faster than someone that works at a job.
- You can invest in your business.
- Tax deductions that are not allowed by employees.
- with higher unemployment, you can reduce your risk from a job by increasing your business where you can income coming in regardless of what happens.
- Opportunities to sponsor increase for those are looking for a change.
- Use the fiscal cliff to help people understand the advantage of owning their own business.
As people get older sometimes their retirement isn’t there or isn’t enough. Retirees are on a fixed income and their income does not keep up with inflation. If you are in that boat you can help offset the high costs of health care as well as other expenses that keep increasing by working at your home based business.
Saving and investment and your business:
-Since 2008, the government has punished savers through Financial Repression, lower interest rates doesn’t allow those that have saving to earn any income from that. What if you could increase your income 20, 50, 100 or even 200% in a given year? As a home business owner you have that ability.
Underpaid younger people, even those that are fresh out of college or still in school have the chance if they desire to start right now on building for the future regardless of what the economic and political out is.
Benefits of our type of business:
- Financial Freedom
- High Income Business Opportunities
- Be Your Own Boss
- Success Driven Industry
- Significant Tax Advantages
- Low Financial Risk
- Time Freedom
- Gaining Business Experience
Advantage of a home business in regards to estate planning:
You can transfer your business to anyone you choose. This could include a spouse or children. Many dealers have done this and their heirs continue to grow and reap the rewards. As an employee you work a job for 30 years your retirement stops when you die.
Questions about taxes and your business have a listen to our program recorded on July 30th 2012 with Joel Minner of Minners Bookkeeping and Tax Prep.
Or you can consult your own tax professional.