TOP
STORIES
 1 of 5
Netflix's 'House of Cards' Puts AMX in the White House
Producers of popular Netflix TV show contacted AMX to ensure complete accuracy in TV depiction of United States White House communications.
 2 of 5
5,000 Cute Animals and Some Tech Stuff Too
Toronto Zoo boosts digital signage and advertising real estate, supports energy conservation with weatherproof displays from SunBriteTV.
 3 of 5
The Scoop on 6 Popular Collaboration Platforms
You need to know the ins and outs of these unified communication, collaboration and huddle room solutions in order to make the best recommendation to your clients.
 4 of 5
Flashback Friday: 11 High-Tech March Madness Arenas of 2014
These NCAA championship arenas are fully equipped with stunning video displays and on-site support from Daktronics.
 5 of 5
11 Award-Winning Digital Signage Projects at DSE
Best and brightest digital signage installations and content creation honored at Digital Signage Expo 2015. Obscura Digital wins Apex Award of the Year.
CompTIA: Fiscal Cliff Will Cripple IT Sector
CompTIA says the fiscal cliff will cause major trauma to the IT sector by reducing the small business expense threshold, the R&D tax credit and access to education and government contracts.

Article


November 14, 2012 By Jason Knott

Small- and medium-sized information technology (IT) businesses will experience major trauma if Congress fails to address the fiscal cliff, according to a new CompTIA white paper.

The “Impact of the Fiscal Cliff on SMB IT Companies,” which focuses on the $955 billion domestic IT sector, warns that mandatory spending cuts will harm small and medium IT businesses, as well as the economy as a whole. The paper also points out specific business expensing and tax credit provisions that will harm small IT firms, as well how cuts in government programs will impact the sector.

“As Congress returns to wrap up unfinished business, I urge them to consider the impact of tax and federal policies on the domestic IT sector, which employs more than two million workers and contributes $110 billion to workers’ payrolls,” says Todd Thibodeaux, president and CEO, CompTIA. “An approach that balances revenue increases with spending cuts while prioritizing policies and programs that spur innovation and entrepreneurship can right the ship and sets us on a steady economic course.”

A recent CompTIA survey of IT and business executives found that approximately two-thirds (65 percent) support a degree of balance in addressing the fiscal cliff. Twenty-six percent feel Congress should implement spending cuts and revenue increases equally, while 23 percent favor slightly greater spending cuts and 16 percent support slightly greater revenue increases.

Click image to view CompTIA white paper “Impact of the Fiscal Cliff on SMB IT Companies.”

The white paper highlights a number of tax policies that have lapsed or are set to expire at the end of the year and threaten to hit technology businesses. Those provisions include:

Section 179 Expensing: Small business expensing will be reduced from $139,000 in 2012 to $25,000 in 2013. This provision will affect IT businesses disproportionately, as upgrading to new technology equipment is a major business expenditure that would be impacted.

R&D: The research and experimentation tax credit, which incentivizes developing or improving new products and technologies, must be renewed.

Moreover, sequestration, or across-the-board spending cuts set to go into effect in 2013, will impact small IT businesses significantly, including:

Government Purchasing: The U.S. government is a major purchaser of IT services, through the Department of Defense and other agencies. Government spending also drives adoption of IT services and innovation in this area by leading the private sector on cybersecurity, cloud and other emerging technologies. Sharp decreases in government investment in basic and applied research threaten to have a trickle-down effect on the technology sector as a whole.

Access to Capital: Cuts to programs that increase small business lending and access to capital are another area of concern to the IT sector. Cutting these programs will limit financing options for small entrepreneurs and startups that may otherwise face challenges in securing funding.

Access to Education: Programs that expand life-long learning in computer sciences and basic IT skills will be jeopardized by sequestration. The Department of Education, the Trade Adjustment Assistance Community College and Career Training Grant and Department of Labor’s Veterans Employment and Training are among the agencies and programs that would be impacted. These programs are particularly important to the IT sector as companies of all sizes report a skills gap in the workforce. Moreover, there are currently 280,000 open IT-related jobs, which could be filled through training and certification programs.

“As President Obama works to strengthen the economy, it is critical that he supports the efforts of small businesses to grow and innovate,” adds Thibodeaux. “It is equally important that his administration act to help displaced and unemployed workers who, with training and assistance, can find meaningful careers in IT, and contribute to U.S. innovation and global leadership.”

Social Bookmark or Share This
  • Facebook
  • Twitter
  • Digg
  • Del.icio.us
  • Yahoo! Bookmarks
  • Google Bookmarks
  • StumbleUpon
  • Technorati
  • Reddit
  • Windows Live
  • LinkedIn
  • Evernote
  • E-mail


  • Latest
  • Blogs
  • Photos
  • Resources



Recent comments

Thanks for your comment, Kaleo. InfoComm itself is not criticizing its members for not making the $2,000 commitment.…

Posted by D. Craig MacCormack on 2015 03 23 · commented on
'Kudos to InfoComm, Shame on Its Members'.

I agree with Max.  I would rather hire someone who wants to be in our awesome industry.  I don’t…

Posted by Kaleo Lee on 2015 03 23 · commented on
'Kudos to InfoComm, Shame on Its Members'.

Thanks for your comment, Max. The headline is supposed to convey that I think it’s a good thing InfoComm…

Posted by D. Craig MacCormack on 2015 03 20 · commented on
'Kudos to InfoComm, Shame on Its Members'.

The title of this article is misleading.  Infocomm IS its members.  You can’t say shame on…

Posted by Max Kopsho on 2015 03 20 · commented on
'Kudos to InfoComm, Shame on Its Members'.