Breaking a lease contract? PLEASE HELP?!?
My mum took out a payment plan for a laptop, and she was asked if she works and she said no, because she doesn’t… but then she got a letter from the leasing company addressing her as a small business, and basically the leasing agreement was meant for small businesses, not people that don’t work.. Also, when she took out the agreement, she wasn’t told that the equipment bought would have to be completally insured and last for 48 months and that breakages would have to be paid for (even though some of the things she purchased eg. Wii Games) break easily - She didn’t even know it was a leasing agreement - she was led to believe it was a buy now, pay monthly installments contract. So they basically lied to her. Is the contract still legally binding?
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Explain to me “Trickle down economy” concept (read the whole question first).?
So, trickle-down economy is being promoted as some sort of an economic panacea. Give tax breaks to high income earners and they’ll create jobs the thinking goes… I do not see this effect at all.
I run a small business currently with 38 employees. First of all, every penny I pay in salary and benefits are direct business costs paid pretax. Strictly speaking, my personal or business taxes have no effect on my ability to pay the employees no matter what the rate is. It simply does not come into account until I get to the bottom line.
Now, would higher taxes on the net income cause me to lay off people? This could be rephrased like this: would I choose not to make profit if I get to keep only 50 cents instead of 55 cents. The only way I could see that happening is if I was some sort of a nutcase anti-tax activist willing to suffer for the cause. Business activity is driven by pretax profits in general.
Well, would the higher tax force me not to buy new equipment required for expansion? After all, I’d probably end up with less capital to spend due to taxes. However, almost all capital spending is eventually tax deductible. I may have to go through depreciation and other tricks, but, still, I get to deduct most of the spending eventually. Besides, most equipment is leased or financed in the first place, so it’s paid pretax anyway.
Would the higher tax cause me to spend less personally? No. I spend about 10% of my income. More money will not cause me to spend more. Less money would have no effect unless it cuts into the 10% I need for my living expenses. I know literally hundreds of people who are in the same situation as I am. The rest of the money is invested.
Would I invest less outside of my business? Yes. But, a certain portion of my investments is tax-sheltered, so it does not matter what the tax is. As for the rest, for the last 10 years it went straight overseas. US did not benefit from a single investment penny from me. China and other emerging economies did. Why? The returns are higher there.
What would cause me to hire more people? Here’s one thing: if my customers, who are mostly middle class and below, have more money to spend. If each customer spent 5% more, I’d be able to double the number of my employees and double my profits. And, I’d be happy to pay more tax on those profits.
Now, I am not even touching issues like the national debt and the obvious failure if this policy over the last 8 years. Pretend that these issues don’t exist. I just want to understand the thinking behind it.
So, please provide a solid logical explanation of how lowering taxes on businesses and 0k + earners leads to more jobs (jobs in China don’t count). Provide facts, academic research, anything that supports this idea without partisan BS. The most logical explanation gets 10 points.
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Can Credit card leasing Companies report to the credit bureaus?
I signed up with a company to accept credit cards for my small business. The company I Choose to do business with totally misrepresented the amount of fees to be taken out of my account. I have since cancelled with them. However, I signed a 48 month lease with the company who provided the terminal equipment. They have now stated taking the fees out of my checking account on different days of the month which has caused my account be be overdrawn many times. I am a small business just starting and do not always have the money in my account. My question is - If I return the equipment and refuse to pay the additional terms of my lease, can they report that to the credit bureaus. I can’t afford that either.
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Can I write off leased equipment?
Small business here. I may have a big gain coming on the sale of a part of my business. Potentially looking to offset some of the gain by writing off some old equipment that is still in use. All of the old equipment is leased. Accounting wise, can I write off leased equipment? If I write it off as a loss, do I have to early term the equipment with the lessor. Does any of this change if the equipment is still in use after the write off?
Thanks
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