News and Analysis
Dec. 14 Webinar to Examine International Tax Issues
November 22, 2022On Dec. 14, the international tax experts at OMA Connections Partner Barnes Dennig will host a complimentary webinar to help businesses prepare for 2023. Among the issues that will be covered are global mergers and acquisitions, as well as recruiting and retention strategies. Learn more and register. 11/22/2022
Wholesale Inflation Eases; Still Up 8% Year Over Year
November 18, 2022The producer price index (PPI) rose 0.2% in October, below the 0.4% estimate. On a year-over-year basis, the PPI rose 8% compared to an 8.4% increase in September, according to federal data. While inflation is still high, this marks the fourth straight decline in the PPI. 11/15/2022
How High Will Interest Rates Go?
November 18, 2022In its Real Economy Blog, OMA Connections Partner RSM says it expects the Federal Reserve to raise the federal funds rate above 5% in the near term. (It currently sits at between 3.75% to 4%.) RSM anticipates “years of higher-than-normal inflation.”
The Fed is likely to implement a 50-basis-point increase at its December meeting, with 25-basis-point increases in early February and mid-March, according to Chad Moutray, chief economist for the National Association of Manufacturers. 11/15/2022
Manufacturers Push for Post-Election Tax Changes
November 18, 2022The National Association of Manufacturers is urging Congress to approve key tax incentives for manufacturers in a year-end package, including the reversal of a harmful change in the treatment of R&D expenses that took effect earlier this year and an extension of 100% bonus depreciation. The tax provisions lead the NAM’s list of post-election priorities. 11/17/2022
Opportunities for Year-End Tax Guidance
November 18, 2022Several OMA Connections Partners are offering year-end webinars to provide tax guidance to businesses, including the following:
- Nov. 29, Plante Moran: Business tax planning in an uncertain market;
- Dec. 1, Plante Moran: Audit and accounting standards, trends, and reminders;
- Dec. 1, Schneider Downs: Federal and state tax update;
- Dec. 7, GBQ Partners: Year-end business tax update; and
- Dec. 7, Clark Schaefer Hackett: Year-end tax planning.
Meanwhile, HBK has published this year-end tax planning guide and Clark Schaefer Hackett has published this list of tax tips for businesses. 11/15/2022
Nov. 29 Economic Outlook for Middle Market Businesses
November 11, 2022The October consumer price index, which rose by 0.4% on the month and by 7.7% from a year ago, supports calls that the Federal Reserve may slow the pace of its rate hikes, according to OMA Connections Partner RSM.
OMA members are invited to participate in RSM’s Nov. 29 economic outlook webcast, which will provide insights on matters affecting middle market businesses, including inflation.
For an in-depth look at the macro-economic forces impacting middle market businesses, check out the latest issue of RSM’s The Real Economy. 11/9/2022
Ohio Tax Receipts Remained Strong In October
November 11, 2022The State of Ohio continues to experience higher-than-expected tax revenues, continuing a trend that started prior to the pandemic. In October, the state’s general fund collected $111.6 million above the official forecast — driven primarily by personal income tax and non-auto sales tax collections. 11/8/2022
Tax Roundup: 65% of Voters Believe U.S. Already in Recession
November 4, 2022- Some 72.5 million U.S. households (40%) will pay no federal income tax this year, reports say — down from the pre-pandemic high of 60% two years ago, according to new estimates.
- Nearly two-thirds of registered U.S. voters believe the economy is currently in a recession, according to a new Politico-Morning Consult poll.
- Ohioans’ total taxable income increased $156.43 billion (72.2%) from 1999 to 2019, according to this infographic recently published by the Ohio Legislative Service Commission.
- The Buckeye Institute, a conservative think tank, has filed its reply brief with the Supreme Court of Ohio in one of five cases challenging the state’s COVID-19 law addressing local income tax withholdings for remote workers.
- In this insight, OMA Connections Partner Clark Schaefer Hackett provides guidance for businesses that amortize expenses for research and experimentation following recent Section 174 changes.
- OMA Connections Partner CliftonLarsonAllen has published this case study on how one manufacturer was granted $2.2 million in tax savings for its new facilities.
Members should note that OMA Connections Partner RSM will host a Nov. 10 webinar to review how the midterm election might impact the direction of federal and state tax policy for the next two years. Register here. 11/3/2022
Consumer Confidence Falls Amid Inflation Concerns
October 28, 2022U.S. consumer confidence fell below expectations in October, according to the Conference Board’s index. The driving factor was persisting inflation concerns, OMA Connections Partner RSM reports.
RSM’s latest consumer spending forecast suggests the Federal Reserve will need to raise the federal funds rate to more than 5% before any pivot is considered. Meanwhile, economists expect the Fed will go for its fourth consecutive 75-basis-point rate hike on Nov. 2, according to a Reuters survey. 10/26/2022
IRS Warns Employers About Retention Credit Ads
October 28, 2022The IRS is warning employers to be wary of third-party advertisements encouraging businesses to claim the federal Employee Retention Credit. According to the IRS, some businesses don’t qualify, and the third parties often charge large upfront fees — or a fee that’s contingent on the amount of the refund. 10/24/2022