Category Archives: Taxes

Author : Pat Carpenter

Many employees throughout Texas, but especially in the larger cities of Austin, Dallas and Houston, are finding it a challenge nearing on the impossible to find the affordable health insurance they and their families need

As an entire state, Texas already has the highest percentage of its population without health insurance, just over 25% (compared with a national average of 15 3%, according to the 2005 U S Census) Indeed, every major city in Texas, including Dallas, Houston and Austin, have a higher percentage of uninsured than the national average

In companies with fewer than 10 workers, most (52%) do not offer health insurance coverage, the main reason being affordability

A report by the Task Force on Access to Health Care in Texas (Code Red: The Critical Condition of Health in Texas, April 2006), highlights the issues associated with the uninsured in the state, which include an overall lower quality of life, for individuals and the communities in which they live

While offering a number of recommendations for improvement, the Task Force extensively outlines the magnitude of what is a growing problem in a state that is growing rapidly, thereby exacerbating an already deteriorating situation that is likely, without concrete solutions being offered, to significantly impact the future for millions of Texans

Among the observations made, the fact that people living in Texas who have no health insurance do receive medical care But who pays for it? The answer is: everyone else The cost of providing healthcare to those who, for whatever reason, do not have it (affordability being the most obvious reason) is passed on to the insured through higher premiums and, in the case of government providing the service, through taxes

More than one-third of the total $65 billion cost of healthcare services provided to people without health insurance is paid out of pocket by the uninsured themselves, but, of the remaining $43 billion, two-thirds is paid for indirectly by those who are insured, in the form of higher health insurance premiums

Those who do need healthcare but do not have insurance to pay for it also tend to get the service in ways that are less efficient and more expensive An example of this is the local emergency room at a hospital, where care is expensive and relatively inefficient, mostly due to the overhead and procedures required to evaluate even the most minor conditions

Because uninsured residents typically do not have ready access to preventive care, when a health condition does become apparent, the cost to treat it is often more expensive with success rates often less than what would be seen if early diagnosis and treatment were to have occurred

The extent of the human cost to Texas and its residents is staggering As the Report indicates, some 2,500 Texas residents die prematurely every year, 1 million Texas residents with chronic illnesses do not receive adequate services, and 3 million residents are less likely to receive preventative and screening services

Screening becomes particularly important when it comes to dealing with cancer, the Report notes About half of all new cancer cases can be detected early through screening, including cancers of the breast, colon, rectum, cervix, prostate, oral cavity and skin

As many as 35% of premature deaths could be prevented by early screening, according to the American Cancer Society Early detection may also reduce the severity of the cancer, since treatment for earlier-stage cancer is often less aggressive than for the more advanced forms of the disease

Another significant consequence of an uninsured population, such as that in Texas and the cities of Dallas, Houston and Austin, is the adverse effects of chronic diseases such as diabetes In Texas, an estimated 1 3 million residents have diabetes, with an additional 300,000 estimated to be undiagnosed Conservative estimates rank diabetes as the sixth leading cause of death in the state; uninsured people with diabetes are less likely to receive recommended services

As the Texas Report indicates, the state’s healthcare infrastructure is heavily strained by the large number of uninsured, with the burden of uncompensated care falling on a system already struggling to meet increases in the demand for services

Experts agree that the impact on business in Texas from the healthcare issue involving uninsured is high Nearly 66% of companies surveyed indicated that they have experienced more pressure to manage internal costs and healthcare costs are growing faster than production and wages, a trend that is unsustainable

Access to affordable health insurance in Texas is an ongoing concern, not only to the healthcare industry but also to companies who have a small number of workers and cannot afford to pay for healthcare premiums

Pat Carpenter writes for Precedent Insurance Company. Precedent puts a new spin on health insurance. Learn more at Precedent.com

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Author : Fritz Pfister

The government granted a reprieve to first time home buyers by extending the up to $8,000 tax credit until April 30, 2010 This will lead to more home sales, and the increased demand will support home prices

The tax credit was expanded to include families that have owned their home five consecutive years within the preceding eight years to qualify for a $6,500 tax credit when they purchase another home by April 30, 2010

The program is limited to single persons earning up to $125,000 and married couples who earn up to $225,000 A partial credit is available for those who earn (single) $125,000 to $145,000 and (married) $225,000 to $245,000

There is no repayment as long as you live in the home at least three years There are special exemptions and extensions available for the military The home purchase caps at $800,000 Contact a tax professional to verify you qualify for the tax credit before buying or selling your home

The first time buyer credit will produce more buyers for the owners of homes that qualify for the $6,500 credit, which will in turn add to the number of buyers in the market

At least until April 30 What happens then? Will the housing market following fourteen months of incentives for first time buyers experience a cash for clunkers style decrease in demand? In my opinion, yes The only question is to what degree

For Springfield, Illinois the timing couldn’t be better This is a seasonal market Historically the majority of home sales, about 58%, occur during April through September That means the tax credit will expire at a time we would normally see increasing numbers of buyers entering the market

That should help blunt the decrease in demand for homes caused by those who purchase a home before they planned, in order to take advantage of the tax credit The main factors that will impact demand for housing following April 30 will be interest rates, unemployment, and consumer spending

Interest rates are most subject to major changes There’s only one way for interest rates to go and that is up The Federal Reserve program to buy $1 3 trillion in bonds at below market rates will end probably in the first half of 2010 Over $1 trillion has already been spent

The unprecedented level of deficit spending by congress and the Obama administration by quadrupling the annual deficit paid for by borrowing or printing money, has weakened the dollar, and has a high probability to lead to hyper inflation as the economy rebounds

That would be a bad combination for interest rates, the end of the Federal Reserve buy down program at the same time inflation would begin to kick in Interest rates under this scenario would increase dramatically, and have a devastating impact upon demand for homes

Unemployment is at 10 2%, predicted to rise to 11% by mid 2010, and rises to 17 5% according to the Department of Labor Statistics when counting those who have given up looking for a job, and those who are underemployed, working part time needing full time work to get by

The Stimulus plan has been an objective failure The only measurable job creation has been in government The ‘jobs saved’ claim has proven to be bogus by investigative journalists across the country

Where will the jobs come from that keeps a healthy number of buyers shopping for homes? Private sector businesses The assault by government upon the private sector with the takeover of car companies, banks, insurance companies, dictation of CEO pay, and the threats of higher costs and taxes means most businesses won’t be hiring anytime soon

Here are the three main reasons businesses are reluctant to hire Health care reform adding $700 billion in new taxes, primarily on businesses The cost of Cap and Trade legislation Increased income taxes when the Bush tax cuts expire

This is a triple whammy that will kill job creation, and put millions of jobs at risk Until Health Care reform and Cap and Trade are resolved, businesses will wait and see before hiring If both bills pass, the Heritage Foundation estimates up to 2 6 million jobs could be lost

When people are concerned about their jobs they don’t spend freely Consumer confidence is at its lowest level in months If consumers aren’t spending, then the entire economy from producers, wholesalers, to retailers are negatively impacted Families concerned about jobs, the deficit, and the costs of Health Care, and Cap and Trade will be conservative with their spending

When taking into consideration the jobs situation, the lack of consumer spending, the potential for higher interest rates and inflation, the tax credits will drive demand in the housing market until April 30 Unless the jobs situation and consumer confidence improve significantly by April 30, it could be a long spring and summer for home sellers across America

My advice is to play it safe and to take action before April 30, 2010 Following April 30, the jury will be out on the health of the housing market Selling your home after April 30 may be significantly more difficult This may be your best chance to sell your home in the foreseeable future

Fritz Pfister is a Realtor with RE/MAX Professionals Springfield IL. and a leader in the local real estate market hosting a one hour radio program, now in its’ 14th year. With over 2000 closed real estate sales, Fritz is recognized as a market expert.
Fritz’s website is
SpringfieldHome.com

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Author : Fritz Pfister

The government granted a reprieve to first time home buyers by extending the up to $8,000 tax credit until April 30, 2010 This will lead to more home sales, and the increased demand will support home prices

The tax credit was expanded to include families that have owned their home five consecutive years within the preceding eight years to qualify for a $6,500 tax credit when they purchase another home by April 30, 2010

The program is limited to single persons earning up to $125,000 and married couples who earn up to $225,000 A partial credit is available for those who earn (single) $125,000 to $145,000 and (married) $225,000 to $245,000

There is no repayment as long as you live in the home at least three years There are special exemptions and extensions available for the military The home purchase caps at $800,000 Contact a tax professional to verify you qualify for the tax credit before buying or selling your home

The first time buyer credit will produce more buyers for the owners of homes that qualify for the $6,500 credit, which will in turn add to the number of buyers in the market

At least until April 30 What happens then? Will the housing market following fourteen months of incentives for first time buyers experience a cash for clunkers style decrease in demand? In my opinion, yes The only question is to what degree

For Springfield, Illinois the timing couldn’t be better This is a seasonal market Historically the majority of home sales, about 58%, occur during April through September That means the tax credit will expire at a time we would normally see increasing numbers of buyers entering the market

That should help blunt the decrease in demand for homes caused by those who purchase a home before they planned, in order to take advantage of the tax credit The main factors that will impact demand for housing following April 30 will be interest rates, unemployment, and consumer spending

Interest rates are most subject to major changes There’s only one way for interest rates to go and that is up The Federal Reserve program to buy $1 3 trillion in bonds at below market rates will end probably in the first half of 2010 Over $1 trillion has already been spent

The unprecedented level of deficit spending by congress and the Obama administration by quadrupling the annual deficit paid for by borrowing or printing money, has weakened the dollar, and has a high probability to lead to hyper inflation as the economy rebounds

That would be a bad combination for interest rates, the end of the Federal Reserve buy down program at the same time inflation would begin to kick in Interest rates under this scenario would increase dramatically, and have a devastating impact upon demand for homes

Unemployment is at 10 2%, predicted to rise to 11% by mid 2010, and rises to 17 5% according to the Department of Labor Statistics when counting those who have given up looking for a job, and those who are underemployed, working part time needing full time work to get by

The Stimulus plan has been an objective failure The only measurable job creation has been in government The ‘jobs saved’ claim has proven to be bogus by investigative journalists across the country

Where will the jobs come from that keeps a healthy number of buyers shopping for homes? Private sector businesses The assault by government upon the private sector with the takeover of car companies, banks, insurance companies, dictation of CEO pay, and the threats of higher costs and taxes means most businesses won’t be hiring anytime soon

Here are the three main reasons businesses are reluctant to hire Health care reform adding $700 billion in new taxes, primarily on businesses The cost of Cap and Trade legislation Increased income taxes when the Bush tax cuts expire

This is a triple whammy that will kill job creation, and put millions of jobs at risk Until Health Care reform and Cap and Trade are resolved, businesses will wait and see before hiring If both bills pass, the Heritage Foundation estimates up to 2 6 million jobs could be lost

When people are concerned about their jobs they don’t spend freely Consumer confidence is at its lowest level in months If consumers aren’t spending, then the entire economy from producers, wholesalers, to retailers are negatively impacted Families concerned about jobs, the deficit, and the costs of Health Care, and Cap and Trade will be conservative with their spending

When taking into consideration the jobs situation, the lack of consumer spending, the potential for higher interest rates and inflation, the tax credits will drive demand in the housing market until April 30 Unless the jobs situation and consumer confidence improve significantly by April 30, it could be a long spring and summer for home sellers across America

My advice is to play it safe and to take action before April 30, 2010 Following April 30, the jury will be out on the health of the housing market Selling your home after April 30 may be significantly more difficult This may be your best chance to sell your home in the foreseeable future

Fritz Pfister is a Realtor with RE/MAX Professionals Springfield IL. and a leader in the local real estate market hosting a one hour radio program, now in its’ 14th year. With over 2000 closed real estate sales, Fritz is recognized as a market expert.
Fritz’s website is
SpringfieldHome.com

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Author : Andy West

There are so many factors that come into play when choosing a location for a new business or for that matter a business that is moving There are many things that you should look into when looking at and considering which state to do business in Factors might include such things as the demographics of the area since this is where you will be drawing your employees from Other factors would include how you can provide the best employee benefits at the lowest cost There are so many reasons that Florida stands above so many other states that they would be too numerous to mention here Instead, we will look at a few major ones like the business advantages of hiring in the state and the financial advantages such as the options in health insurance Florida has to offer

This is a state that is growing The consumer market is getting larger, and more people are constantly moving here Add to that the receptive attitude that the state government has toward existing businesses as well as new ones, and you quickly see a winning equation Several different databases, including the United States Census Bureau, list Florida as having the 4th highest gross state product Now throw in the advanced infrastructure that they are world famous for as well as low cost utilities, and we quickly realize why businesses are moving here

Few employers would disagree that one of the keys to a business’ success and survival is to have happy and satisfied employees And with all of the national hype politically about health insurance, Florida stands out as a state that has figured out how to make things work In fact, when it comes to healthcare, this state has a model that many others have been striving to mimic Without going into too much detail, they simply require that the employer pay a small portion of the employee’s coverage premiums, just like most states do But compare the costs to the employer, and you may just see that there is a difference

Another advantage over other states is that we offer a recruiting tool that other states simply can not offer Your employees (and you yourself if you live here) do not have to pay any state income taxes! That is a benefit that can easily attract high quality workers because it means that more of the money they make they get to keep In fact, if you are a business that is considering moving, you might just be able to bring some of your key players along with you without drastically increasing their pay based on the fact that they will not be paying these taxes

And of course we would be remiss not to mention the climate If your business is in a region that is susceptible to snow and ice, then you know the logistical nightmares that can arise during the winter months Shipping and receiving can easily fall victim to this kind of inclement weather This can mean shipments don’t reach their destination when promised, and can even mean bringing your business to a stand still Well you don’t have to worry about snow and ice grinding things to a halt in the Sunshine State!

And the reasons ranging from our nearly perfect weather to the various options in health insurance Florida has to offer are just some of the factors that make moving your business to (or opening a new business in) the Sunshine State such a great idea Any one of the local Florida Chambers of commerce would be happy to discuss all of the other reasons with you

Andy West is a writer for Get Quotes Online, offering cost effective savings on health insurance florida policies for small and large businesses. For more information please visit GetOnlineQuotes.com.

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Author : Nick Adama

For mortgage companies pursuing a foreclosure, the costs can run exorbitantly high Mortgage giant Freddie Mac has estimated that the average cost to a lender of foreclosing on a property is close to $60,000, with other estimates placing the total cost to the homeowner, lender, surrounding community, and local government close to $80,000

Homeowners can use this knowledge when the attempting to negotiate with a lender for a short sale, mortgage modification, or any other solution The point of loss mitigation, supposedly, is to reduce the loss on a defaulted loan by working with the borrowers to prevent it from going into foreclosure Knowing how much foreclosure costs the lender is a powerful piece of information for homeowners

But there is a big difference between paper losses and out of pocket expenses for lenders Some of the losses on a foreclosure fall into one category, while the remaining fall into the other Obviously, mortgage companies are concerned about out of pocket costs much more than paper losses that do not represent true outflows of money for the bank So what costs are involved in a foreclosure?

Foreclosure sale fees To initiate a lawsuit or begin a nonjudicial foreclosure, it costs the bank money for filing fees or newspaper publication of the sheriff sale Many states require a lender publish a notice of default or notice of sale for 3-4 consecutive weeks, which the lenders have to pay for out of pocket

Legal fees Lenders always hire local attorneys to pursue foreclosure on a home, and attorneys, as most of us know, are not cheap If the homeowners defend against the process for as long as possible, legal fees for the bank can run into the tens of thousands of dollars While these are added to the total amount the homeowners owe, if the house is not saved, the bank ends up having to pay the attorneys out of pocket

Eviction costs The eviction process after a foreclosure and sheriff sale typically involves the bank initiating another lawsuit or paying the attorneys more to have the former owners removed from the house Any of these costs, including any more filing fees or legal fees, will have to come out of the bank’s pocket

Damage to property during foreclosure Unfortunately, once homeowners know they will be foreclosed on and that the bank will no longer work with them to resolve the situation, they may take out their frustration at the bank on the house itself There are always new horror stories of properties being gutted, stripped, or vandalized by the former owners Repairs will either need to be paid for out of the bank’s pockets or taken as lower proceeds from a sale

Damage to property after foreclosure When properties sit abandoned, the best that happens is it falls into disrepair Old conditions worsen and new ones appear due to deterioration and the effects of the weather In the worst case, the home becomes a target for squatters who damage the property or thieves who strip it of its pipes, siding, and anything else of value The bank will need to pay for repairs out of pocket or accept a lower sales price to compensate

Property taxes If the bank does not keep up with the local property taxes, it risks losing the house itself to a tax foreclosure While taxes may be lower for non-owner occupied houses like those owned by mortgage companies, any taxes will need to be paid for each day that the bank owns the property Once the property tax bill comes due, the lender will have to pay it out of its own pocket

Homeowners insurance Although banks may receive a far better deal for property insurance than what it forces homeowners to pay for through mortgage servicing fraud and other tactics, homeowners insurance will still need to be paid This will come out of the bank’s own pocket, although the lender may own another company that provides the insurance, keeping the cost in house

Maintenance Keeping the property cleaned and maintained is one cost that banks typically avoid Instead, they will allow the house to fall into disrepair and simply take less in proceeds on a sale Although this is a paper loss to the banks, the longer the house is empty and not taken care of, the more it will deteriorate and the further the sales price will need to be to motivate any buyer to purchase it

Commissions on sale When a bank ends up as the owner of a property after a sheriff sale, it will typically find a local real estate agent to list the property with Once the house sells, the broker will have to be paid a commission, reducing the lender’s proceeds from the sale

When homeowners are negotiating for some solution to foreclosure, pointing out the vast costs to the bank may be one way to force the bank’s hand and offer a plan instead of going through with foreclosure Even a $20,000 loss on the loan due to a short sale could represent a savings of nearly $40,000 to the bank in the long run Banks threaten the loss of the house to homeowners if they don’t stop foreclosure – why can’t homeowners threaten the loss of $60,000 to the banks?

To get more foreclosure help and advice, you can find more of Nick’s articles at his website. The site discusses various ways to save your home, from the time you lose a job or face a hardship to the period after the foreclosure auction when you are trying to prevent eviction. Visit his site here to read more: http://www.foreclosurefish.com/

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