edf40wrjww2CF_PaperMaster:Desc
The national/international economy
Opportunities
*upswing of national economy
* The Tax Relief Reconciliation Act of 2001 has begun a decline in the taxes on American households, and will continue to do so until they reach the final goal of a total of 3% drop in 2006. In addition, the Working Families Tax Relief Act of 2004, which is a supplement to the 2001 act, has increased the dollar amount for child tax credit. Therefore, American households now, more than ever, have large amounts of disposable income.
* Recent legislation has reduced the amount of taxes for which small businesses are responsible. As a result of this recent legislation, there are three major areas of opportunity for small business owners to experience tax relief: (1) individual income tax returns, (2) growth incentives for small businesses, and (3) a reduction of taxes on dividends and capital gains. Therefore, this allows for more capital expenditures for small businesses.
*mergers with overseas companies
Threats
*international economy in recession
*Earlier this year, the World Trade Organization ruled the U.S export-tax provision, which was intended to boost U.S. exports, illegal. After the ruling, the EU imposed punitive tariffs, now at 12% and rising 1% each month, on about 1,600 U.S. exports. If these high tariffs are left in place it will hurt the U.S by reducing export opportunities. In addition, many of our trading partners tax income earned within their borders only, while we tax the income of U.S. taxpayers regardless of where it is earned, therefore U.S. companies doing business overseas are often subject to a double tax on foreign e ...