Entering 2013, businesses do not know what their tax rates will be. That’s a big chunk of any business’ planning. There are also plenty of questions still undetermined about the implementation of Obamacare and the many new taxes hidden within it and the new reporting and regulations coming down the pike with it.
Throw in the impact of going over the fiscal cliff with a national economy that is running only a notch above a recession already and it’s no wonder job growth is at a standstill in most of the country.
We are now in the most expansive big government movement in America’s history and it is crushing the private sector.
Consider the impact of the Dodd-Frank banking legislation allegedly drawn up in response to the financial crisis brought on by sub-prime mortgages. The law with more than 2,000 pages doesn’t even touch on sub-prime mortgages, but creates more than 70 new regulations and policies that banks are required to monitor and adhere to – regardless if they made a subprime mortgage loan or not.
Locally we are most fortunate to have real job and economic growth spurred by the Eagle Ford Shale. Without it, we’d be stalled in the doldrums like the rest of America.
We can only hope 2013 turns out better than it looks going in, but until the federal government takes its foot off the neck of the economy, the likelihood of an economic rebound will remain a pipe dream.
All should buckle up for a bumpy ride.
– Jeff Latcham