Tax and Finance Management

Industrial Production Posts Significant Decline

U.S. industrial production fell more than expected in October due to the United Auto Workers strike. OMA Connections Partner RSM reports production of motor vehicle parts declined by 10%, marking the biggest drop since the start of the pandemic. 11/20/2023

Think Tank: Short Recession Expected in 2024

The Conference Board Leading Economic Index^® fell 0.8% in October, marking the index’s nineteenth consecutive decline in the index. The Conference Board says it expects elevated inflation, high interest rates, and contracting consumer spending to tip the U.S. economy into a very short recession in 2024. 11/20/2023

Summary: Proposed Changes to Steel, Aluminum Tariffs

In 2018, the Trump administration imposed tariffs of 25% on imported steel and 10% on aluminum. To help alleviate the burden on U.S. industry, the Section 232 exclusion process was created.

OMA Connections Partner CliftonLarsonAllen has published this update on proposed changes to the Section 232 process — changes that could impact importers and users of steel and aluminum. 11/21/2023

Inflation Indexes Show Improvement

The consumer price index was unchanged in October, as the annual rate of consumer price growth slowed to 3.2%. On a year-over-year basis, producer prices rose just 1.3% from October 2022.

This chart shows the last 60 years of changes in the personal consumption expenditures price index, the Fed’s preferred inflation gauge.

OMA Connections Partner RSM forecasts the consumer price index will drop further by year’s end, but also predicts it “will be some time” before the Fed cuts interest rates. 11/15/2023

Update: IRS’ Latest Guidance on ERC

The IRS has issued multiple warnings to employers regarding schemes for claiming pandemic-related relief with the employee retention credit (ERC) program. In October, the agency provided instructions on how to return improper ERC claims. OMA Connections Partner CliftonLarsonAllen has published this update on the latest ERC developments. 11/15/2023

Ohio’s October Revenues Beat Forecast by $163M

Ohio’s Office of Budget and Management (OBM) reports that the state’s October revenues came in $162.6 million (7.2%) over estimates for the month. Personal income tax collections were a whopping $133.8 million (18.8%) above the estimate.

For the current fiscal year, the state’s revenues are running $218.6 million (2.4%) over estimates. 11/7/2023

Webinar: Year-End Planning for Businesses

On Nov. 29, OMA Connections Partner Clark Schaefer Hackett will host a complimentary webinar on year-end tax planning for businesses. This event will cover a diverse range of topics to provide insights that will also help businesses ensure a successful 2024. Register here. 11/8/2023

Introduction to Government Contracting

Domestic manufacturers engaged in R&D may wish to explore how their efforts can align with government needs. OMA Connections Partner HBK has published this guidance to provide an introduction to government contracting, including its funding phases. 11/8/2023

Losses From UAW Strike: $10.4 Billion

The United Auto Workers’ strike against the Big Three has ended, but not before major economic damage was inflicted.

Anderson Economic Group estimates that after six weeks, the strike has resulted in more than $10.4 billion in direct costs — mostly tied to the automakers or suppliers and their employees. Researchers told OMA staff that about 20% of the losses could be linked to Ohio’s economy.

Former Ford CEO Mark Fields told CNBC this week that “automation in the plants is now going to look a lot more compelling.” 10/31/2023

Manufacturers Call for Tax Code Improvements

The OMA, joining with manufacturers nationwide, has co-signed a letter spearheaded by the National Association of Manufacturers, calling on Congress to advance legislation that would ensure the federal tax code boosts the U.S. competitiveness.

The letter calls for enhanced R&D provisions and interest expense deductions, as well as making permanent a key incentive for capital equipment purchases. 11/3/2023