Businesses are hiring regardless of a resolution to the “fiscal cliff,” according to a poll taken during a year-end tax planning webinar for businesses recently hosted by Baker Tilly Virchow Krause, LLP.
More than 75 percent of respondents—CFOs, controllers, and top tax professionals from companies in a variety of industries across the country—said they were not waiting for a legislative outcome when it relates to adding employees.
The poll results seemingly contradict the theory that companies aren’t filling out their ranks until congressional action is taken to resolve the fiscal cliff. The findings indicate that while businesses, including those in manufacturing, are concerned about expiring tax cuts, they are more concerned about addressing their own fiscal and operational plans.
“These results show that businesses are more confident that the economy is starting to move in a positive direction, which is certainly good news for our country,” Kelly Toole, Baker Tilly Tax Managing Partner, said. “Still, uncertainty on the tax front has rarely made planning for the year-end and beyond more difficult.”
Recent guidance concerning the 3.8 percent Medicare contribution tax is helping to clarify one major tax issue, but many questions remain. To help clients plan in the current tax environment and make sound decisions for their financial future, Baker Tilly is advising they stay flexible to react quickly to however our government resolves the fiscal cliff.