The following is a transcript of a telephone conversation with Sandra Simmons, President of Money Management Solutions and creator of the Money Management Solutions software system…

Sandra Simmons, President Money Management Solutions

Sandra: Hi [name withheld] how can I help you?

Business Owner: Your business money management software doesn’t work for my business.

Sandra: What do you mean exactly when you say it doesn’t work for your business?

Business Owner: Well, for one thing, what good is going to all the trouble to fill out the budget? I already know how much money I’m spending.

Sandra: The budget module isn’t meant to tell you how much you’re spending. It’s designed to tell you how much you should be making.

Business Owner: What?

Sandra: And just making break even isn’t good enough, you have to budget to do better than break even.

Business Owner: Huh?

Sandra: Have you built your budget in the Money Management Solutions software?

Business Owner: Yeah.

Sandra: Okay good. How much did you budget for your Emergency Fund?

Business Owner: My what?

Sandra: Your Emergency Fund.

Business Owner: What’s that for?
(more…)

Hold onto your wallets, and tighten up your money management controls!

Here is a brief summary of tax law changes for 2010.

By Patti S. Spencer of Spencer Law Firm

The New Year brings many tax changes. Many tax breaks are phased out. The changes below are the current state of the law. It is always possible for Congress to act to extend or replace disappearing provisions.

The House passed a bill that extended many of these provisions, but the Senate was unable to schedule a vote on it. The Senate has been tied in knots over the health care bill.

Roth IRA conversions

Starting in 2010 the income cap for converting a traditional IRA to a Roth IRA is eliminated. Now anyone can do a Roth conversion. If the conversion is done in 2010, taxpayers can spread the income tax attributable to it over two years: 2011 and 2012. Note that while the income cap is removed for purposes of qualifying for the conversion of a traditional IRA to a Roth IRA, there remains an income cap on regular contributions to a Roth IRA. The income phase-out begins at $167,000 for joint filers.

New vehicle sales tax

Individuals will no longer be able to take an itemized deduction or increase the standard deduction for the sales tax on the purchase of a new motor vehicle. Vehicles had to be purchased after Feb. 16, 2009, and before Jan. 1, 2010, to qualify for the deduction.

Sales tax

The choice to deduct state sales tax payments instead of deducting state and local income taxes is gone. This provision was very important for taxpayers in such states as Florida, where there is no income tax.  THIS IS REALLY UNFAIR TO LOW TAX STATES.

End to phaseouts

In 2010 there will be no phaseout of itemized deductions and personal exemptions for higher-income taxpayers. This will greatly benefit high earners.

Teachers’ deduction

The $250 deduction for teachers who buy classroom supplies with their own money is eliminated.

Tuition and fees

The $4,000 deduction for college tuition and fees expires after 2009. This deduction was permitted “above the line,” meaning it could be taken even if the taxpayers didn’t itemize.

Contribution from IRAs

IRA owners older than 70½ who make contributions from their IRAs directly to charity will no longer be able to exclude these withdrawals from income.

Property tax deduction

Non-itemizers will no longer be able to deduct up to $1000 in property taxes paid. This provision had been a help to homeowners who had no mortgage so that there was no interest deduction to help make itemization worthwhile.

AMT exemptions

The Alterative Minimum Tax exemption levels fall back to $45,000 for married filing jointly and $33,750 for singles and heads of household. (In 2009 the exemption was $70,950 for married filing jointly and 46,700 for singles and heads of household.) Some commentators say that as many as 1 in 5 taxpayers will be subject to the AMT in 2010.

Unemployment benefits

The first $2,400 of unemployment benefits will no longer be tax-free.

Energy credit reduced

The 30 percent tax credit for the cost of energy-saving home improvements is reduced to 19 percent and is capped at $500.

Section 179 expensing

The maximum amount of equipment that can be expensed (instead of depreciated) is reduced to $135,000 from $250,000. Businesses can no longer claim 50 precent bonus depreciation on assets placed in service in 2010.

Tax on dividends

For taxpayers in brackets higher than 15 percent, qualified dividends are taxed at a maximum rate of 15 percent through Dec. 31, 2010. For taxpayers in the 10 percent and 15 percent brackets, qualified dividends are taxed at 0 percent through Dec. 31, 2010. The provisions sunset at the end of the year, and dividend taxation reverts to former 2002 rates.

Mileage reimbursement

The mileage rates in 2010 are 50 cents for business, 16½ cents for medical and 14 cents for charitable purposes.

Home buyers credit

If you used the home buyers credit in 2008, you must start paying it back in 2010. The qualification period for first-time home buyers to purchase a home and qualify for the credit continues through May 1.

Retirement accounts

Remember you have until April 15 to contribute to a traditional or a Roth IRA. If you have Keogh or SEP and you get a filing extension for your 2009 return until Oct. 5, you have until that date to make contributions.

No estate tax

The federal estate tax is repealed for individuals who die in 2010.

Wild cards

If the Senate and House eventually hammer out a health care bill that becomes law, there are various provisions in the current legislation on how to pay for it. The House bill includes a 5.4 percent surtax on high earners and would curtail flexible spending accounts. The Senate bill includes a 40 percent surtax on high-end employer-sponsored health plans that provide health coverage valued at more than $8,500 for individuals and $23,000 for families (they call them “Cadillac plans”) and increases the Medicare payroll tax. Hold on to your wallet.

Article Source: http://articles.lancasteronline.com/local/4/247022

Write your congressional representatives and urge them to support the FairTax Act http://www.FairTax.org and leave a comment here that you took action!

Sent to me by a friend, this is a good reminder that despite the economic crisis and runaway recession each of us are in control of our own future, if only we agree to disagree

His teachers said he was “too stupid to learn anything.” and was fired from his first two jobs for being “non-productive.”
Thomas Edison’s 1000 inventions came during the Panic of 1873 — 6 years — and the Long Depression — 23 years.

He did not speak until he was four years-old and did not read until he was seven. His parents thought he was “sub-normal,” and a teacher described him as “mentally slow, unsociable, and adrift forever in foolish dreams.”
Albert Einstein survived one Long Depression, three panics and Post WWI Recession.

He failed sixth grade and was subsequently defeated in many elections until he (Winston Churchill) became Prime Minister at the age of 62.

Only a mediocre pupil in undergraduate studies and ranked 15th out of 22 students in chemistry.
Louis Pasteur was ranked 15th out of 22 chemistry students.

It is said this farmer boy could not read nor write, failed and went broke five times. His company has survived 8 Recessions, 1 Oil Crisis and 1 Great Depression.
Hopefully Ford Motors will make it through this.

He was not allowed to wait on customers when he worked in a dry goods store because, his boss said, “he didn’t have enough sense.”
FW Woolworths was founded during the Long Depression that lasted 23 years with a loan of $300 and in 2001 changed its name to Footlocker.

Fired by his newspaper editor who said, “he lacked imagination and had no good ideas.” He went bankrupt several times before he built the largest entertainment company in the world.
Walt Disney’s creations have since survived 1 Great Depression and 7 Recessions.

After his first screen test, the memo from the testing director of MGM, dated 1933, read, “can’t act, can’t sing, slightly bald, can dance a little.”
Fred Astaire’s career lasted 76 years and was launched during the Great Depression.

School dropout and child runaway, this individual used $105 from his first social security check at the age of 65 and sold his franchise after 9 years of attempts and during two recessions.
The world knows him as “Colonel” Sanders, founder of Kentucky Fried Chicken.

Trained ambulance driver and later a milkshake machine salesman, this guy took over a small scale franchise and built the company into largest fast food restaurant in the world.
Ray Kroc bought McDonalds during Recession of 1953.

The first time he walked on-stage as a professional comic, he looked out at the audience, froze, forgot the English language and was jeered offstage.
The Seinfeld show will pay Jerry over $250 million.

Decca Records and Columbia Records turned down a recording contract with this group suggesting, “Groups of guitars are on the way out.”
The Beatles delivered 292 performances in one year at a seedy little club in Liverpool before they were discovered!

He handled the violin awkwardly and preferred playing his own compositions instead of improving his technique. His teacher called him “hopeless as a composer.”
Beethoven wrote five of his greatest symphonies while completely deaf.

Is there a message here?
1) Never Quit
2) Everyone has problems!
3) Recessions don’t kill anyone!
4) Do something spectacular.

While the media is spinning story after story about the Presidential Campaigns, and Obama and McCain are chanting “Change, Change, Change,” I am asking “How, How, How are you going to do that?”

First, and most obvious, there is no power vested in the power of the President to enact law. That power is fully invested in the power of the Congress according to our Constitution. Let me repeat that. The Constitution does not empower the President to make law.

Executive Orders issued by the President that bind the entire nation are illicit because, as noted above, “All legislative powers” are possessed by Congress. An Executive Order that binds only the employees of the federal government (such as granting a holiday) is proper because the President should be considered to be the holder of power much like that possessed by the CEO of a company. But the entire nation is not in the employ of the President.

What power does the elected President have? The President does have a role in lawmaking with his possession of a veto. He can veto a measure approved by Congress (which can be overturned by a two-thirds vote in each house of Congress), or simply allow it to become law by doing nothing within 10 days, “Sundays excepted.”

Both candidates are saying they are going to cut income taxes, balance the budget deficit, straighten out the US economy, stop the wasteful spending, rehabilitate the Social Security system or provide affordable healthcare and health insurance to every citizen but, what they aren’t telling us is how they are going to get Congress to do that.

Second, it is an obvious mistake to think that cutting taxes will fix the government’s economy and allow the budget deficit to get handled. Any ordinary individual knows that in order to pay off debt, more income is needed. If enough income were made in the first place, of course, there would be no need to take on debt. Debt is simply a function of spending money you don’t have.

Since the government produces no income of their own and they just take it from us taxpayers, then if they take less income from us, they will have to borrow more money to fund all of their projects and that means a BIGGER budget deficit.

Smart money management requires working both ends; consistently raising gross income while cutting unnecessary spending to live within your budget. In all the years I have been around, I have never seen the US government demonstrate their ability to do this simple money management survival action.

What is the price of attaining financial freedom? It really is very simple. Make a ton of money, spend less than you make, don’t contract for any debt you cannot immediately pay with cash, and set money aside for the future survival of the organization.

Wednesday, September 17th, is Constitution Day – a day specifically designated by an act of Congress when Americans are supposed to honor the remarkable document that created our system of government. The date was chosen because the Constitution was approved at the original Constitutional Convention on September 17, 1787. How well do you know your Constitution? How well do Mr. Obama and Mr. McCain know our Constitution? Perhaps we should ask them about this by insisting they tell us HOW they intend to make all of these new changes which require new laws be passed.