Profitability Points

Welcome to Profitability Points, the blog space of Person Huff CPA group! We’ve decided to take up the challenge of making the boring topics of accounting and small business interesting enough that you read our posts and learn something you can apply in your daily operations. Our goal is to help you make (and keep!) more money by providing timely information about federal and state taxes, managing cash flow and streamlining operations. Learn more about our Five Point Profitability Checkup

2015 International Tax Competitiveness Index

by dhuff on October 8, 2015

Taxes are a crucial component of a country’s international competitiveness. In today’s globalized economy, the structure of a country’s tax code is an important factor for businesses when they decide where to invest, how much to invest, and which types of operations to locate in which countries. No longer can a country levy high taxes on business investment and activity without adversely affecting its economic performance. In recent years, many countries have recognized this fact and have moved to reform their tax codes to be more competitive. However, others have failed to do so and are falling behind the global movement.

The United States provides a good example of an uncompetitive tax code. The last major change to the U.S. tax code occurred 29 years ago as part of the Tax Reform Act of 1986, when Congress reduced the top marginal corporate income tax rate from 46 percent to 34 percent in an attempt to make U.S. corporations more competitive domestically and overseas. Since then, member countries of the Organisation for Economic Co-operation and Development (OECD) have followed suit, reducing the OECD average corporate tax rate from 47.5 percent in the early 1980s to around 25 percent today. In 1993, the U.S. government moved in the opposite direction, raising its top marginal corporate rate to 35 percent. The result: the United States now has the highest corporate income tax rate in the industrialized world.


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Bloomberg Predicts Lower Effective Tax Rates in 2016

October 5, 2015

Bloomberg is predicting a lower effective tax rate in 2016 because of a drop in the consumer price index (CPI). The CPI measures the cost of goods and services. When the CPI doesn’t change much, it tends to signal that interest rates will stay put. For 2016, Bloomberg is projecting that the personal exemption amount […]

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IRS Tax Return Dates for C-Corps, Partnerships Are Changing in 2016

September 28, 2015

Many filing deadlines have changed by Congress and small business owners need to be aware of the new filing dates. The changes came in an unlikely vehicle, H.R. 3236, the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015. That non-tax law also gave the IRS an increased audit period from three to […]

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Including SSNs On Form 990 Exposes Donors To Identity Theft

September 24, 2015

IRS Form 990 is an informational tax form that most tax-exempt organizations must file annually. The form gives the IRS an overview of the organization’s activities, governance and detailed financial information. Form 990 also includes a section for the organization to outline its accomplishments in the previous year to justify maintaining its tax-exempt status. In […]

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Louisiana Corporate Tax Rates Neither Highest Nor Lowest in Country

September 21, 2015

Levied in 44 states, corporate income taxes account for a relatively small share of state revenue — 5.2 percent of state tax collections and just over 2 percent of all state revenue, including federal transfers. Top rates range from a low of 4.53 percent in North Dakota to a high of 12 percent in Iowa. […]

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Of Loopholes and Tax Expenditures

September 15, 2015

Conversations about “loopholes” in the tax code are often unproductive. “Loophole” is a loaded word, one that sneaks in hidden assumptions without justifying them. But loaded words are often effective; especially, apparently, the word “loophole.” As a result, the word has been used far too often and applied in all sorts of inappropriate situations. The […]

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Louisiana Small Business Tax Rates Incentivize Some, Penalize Others

September 14, 2015

Businesses in Louisiana pay widely different effective tax rates depending on which industry they’re in and how long they’ve been operating in the state, according to a new report from the Tax Foundation in collaboration with KPMG. “Louisiana’s tax structure is characterized by high rates and partially offsetting incentives, particularly for new, but in some […]

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Brett Summerville Joins Person Huff CPA Group

September 11, 2015

Person Huff CPA Group in Metairie is pleased to announce Brett Summerville has accepted the position of Tax Manager. Brett has 7 years of experience in public accounting and has been a CPA for over 4 years. Before joining Person Huff CPA Group, he had 3½ years of public accounting experience in a mid-sized local […]

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2015 Tax Bills Passed In The House Benefiting Small Business

September 9, 2015

Since January 2015, several bills have been passed by the House, including ones to make permanent a few of the 50-plus provisions that expired at the end of 2014. Described below is a sampling. Permanent, higher Sec. 179 expensing: America’s Small Business Tax Relief Act of 2015, H.R. 636, passed on Feb. 13. This bill […]

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