TOP
STORIES
 1 of 5
Flashback Friday: 7 Super-Scary Wiring Scenarios
CI is bringing back our Halloween-themed guide to feeling great about your company's wiring techniques. What's the worst wiring scenario you've encountered?
 2 of 5
ESPN Makes Digital Splash with Eye-Popping SportsCenter Upgrade
Mobile displays, video floor, social media wall among many highlights of the new SportsCenter digital studio DC-2.
 3 of 5
Mission Critical 411 on Control Room Integration
Integrators with long histories in this space discuss how projects and customer demands are different than others.
 4 of 5
How Boston College Gets Fans off Comfy Couches, onto Metal Benches
Boston College installs new Daktronics 13HD LED video boards at Alumni Stadium to draw fans to the in-game experience.
 5 of 5
Top 10 Dante-Enabled Products
Check out 10 key products that have received the increasingly important Dante touch.
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
Tales of the Mentors Who Made Us Who We Are

CI, along with InfoComm, NSCA's Chuck Wilson and Zdi's Jay McArdle, takes a step back to appreciate the mentors who get young, tech-savvy professionals excited about a career in the integration industry.

Redefining the Control Systems Programmer
An AV Guy's Guide to Talking IT
What Are You Thinking… Seeking RMR From Yesteryear’s Trends?
5 Strategies for Selling and Renewing Service Plans
View more blog posts
Flashback Friday: 7 Super-Scary Wiring Scenarios

Chances are, when this story was published one year ago, you didn't learn anything from our Halloween-themed gallery of scary wiring scenarios. But hopefully it made you feel great about your own company's wiring techniques. Check it out for this week's edition of Flashback Friday.

InFocus LiteShow 4 Transmits Digital Content to Projectors & Displays
ESPN Makes Digital Splash with Eye-Popping SportsCenter Upgrade
How Boston College Gets Fans off Comfy Couches, onto Metal Benches
Top 10 Dante-Enabled Products
View more photo galleries
White Paper:
Campuses Banking on Emergency Notification, Upgrades

A survey from CI sister publication Campus Safety shows that one in two campus protection professionals say their institutions plan on or are considering deploying new/upgraded emergency alert solutions in the next year.

Webcast: Unscrambling Your AVB, HDBaseT Questions
White Paper: Technology Brief on Control Rooms
White Paper: The Voice: How to Design Emergency Communication Systems with Announcements
White Paper: Digital Signs of the Times
White Paper: A Snapshot of the Onsite Freelance & Contractor Workforce
Webcast: 7 Ways an Integrator Can Save Clients Money on Utility Costs
White Paper: 3 Dazzling LED Panel Implementations
View more papers or webcasts



Recent comments

I am a co-leader for my local ACE Mentor Program here in central Florida.  It is a very rewarding program…

Posted by Jim Landis on 2014 10 24 · commented on
'Tales of the Mentors Who Made Us Who We Are'.

This set really looks amazing, display walls everywhere!

Posted by Chanan Averbuch on 2014 10 23 · commented on
'ESPN Makes Digital Splash with Eye-Popping SportsCenter Upgrade'.

This device is just awesome. It expands line that includes access control and CCTV camera solutions to offer…

Posted by Nishad Hasan on 2014 10 20 · commented on
'Seco-Larm Launches HDMI Product Line'.

Thanks for your comment, Alan. I understand and appreciate your frustration about the pictures and belief…

Posted by D. Craig MacCormack on 2014 10 14 · commented on
'Inside Look: Long Island Railroad's Hiperwall Command Center Unveiled'.