TOP
STORIES
 1 of 5
Top 40 CI Influencers Under 40
There was no shortage of candidates for our look at some of the young people who are making a difference for their companies and this industry. See who made the cut for 2014.
 2 of 5
The Rise and Reign of Verticalization
Have we reached the age of requiring integrators to become even more vertically focused?
 3 of 5
Medical Simulation Lab Makes All the Difference in Education
CompView Audio Visual helps California community college district build high-tech nursing education facilities.
 4 of 5
Top 5 Sports Venue Market Integrators
These innovative, market-leading firms share dos and don’ts when approaching this entertaining vertical.
 5 of 5
A Case for Showrooms Making, Not Wasting, Money
Hard to envision technologies like unified communication and collaboration lend themselves to showroom selling for integrators like Ontario-based Advanced.
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
Top 40 CI Influencers Under 40

There was no shortage of candidates for our look at some of the young people who are making a difference for their companies and this industry. See who made the cut for 2014.

Who Got You Excited About This Industry?
What Are You Thinking… Not Being Ready for Cloud, Mobile, BYOD?
The Rise and Reign of Verticalization
Greene Wins Drunk Unkles Twitter Contest
View more blog posts
White Paper:
3 Dazzling LED Panel Implementations

In this Partner Series paper, brought to you by Elation Professional, we dive into three dramatically different LED panel implementations. Learn how different objectives lead to different interpretations of how LED panels can be implemented.

White Paper: Partner Series: How to Design Tomorrow’s Conference Room Technology Today
White Paper: Meet the 2014 CI Industry Leaders
White Paper: Inside the Polarizing Health Care Market
White Paper: A Guide to House of Worship Lighting Design
White Paper: LP Meets IT for Complete Managed Business Infrastructure, Security and Intelligence
White Paper: Opportunities, Challenges of Third-Party Labor
Webcast: Debate: What’s the Next Frontier for Automation?
View more papers or webcasts



Recent comments

Thanks for your comment, Derek! While this article was just a brief background about Audinate and Dante, we…

Posted by Chelsea Cafiero on 2014 08 08 · commented on
'What is Dante and Why is it So Popular?'.

Nice Overview Jason!

Integrators should be taking note of these changes and positioning themselves…

Posted by Mark Coxon on 2014 08 04 · commented on
'Stricter California Lighting Standards Take Effect'.

Robert,

It is curious that you just threw in the sentence “Audinate is a member of the AVnu Alliance,…

Posted by Derek R. Flickiinger on 2014 07 29 · commented on
'What is Dante and Why is it So Popular?'.

Casey - another great project! 


Your design and implementation came out a amazing!

Posted by Chanan Averbuch on 2014 07 10 · commented on
'Getting 'Serious' About Boa Lounge Upgrade'.