- Nearly 140 countries have agreed to a 15% minimum corporate tax to be effective in 2023 - the most sweeping overhaul of global tax rules in a century aimed to curtail tax avoidance by multinational corporations.
- Many items have become more expensive in 2021.?The Consumer Price Index (CPI) increase for the prior 12 months has been 8.6% - the highest we’ve experienced in 40 years. The Fed projects 2.5% overall inflation for 2022 because, in their view, a 2021 price spike caused by supply chain disruptions/constraints combined with strong consumer demand will not be sustainable.
- Sustained increases in the cost per shipping container from China to the United States (U.S.), up 400% from pre-COVID-19, could launch a cycle change with U.S. companies choosing to re-shore production closer to the U.S., potentially lessening China’s dominance as a low-cost exporter.?
- President Biden recently signed a $1.2 trillion infrastructure tax bill into law. This will provide nationwide investments for bridges, roads, highways, broadband, water, and energy infrastructure. Locally, the bill includes billions of dollars of investments across Ohio for highway projects, water infrastructure improvements, public transportation, bridge repairs, airport renovations, expanded availability of electric vehicle charging stations, and more affordable broadband access.
- The Fed’s eight-month phase out of monthly bond purchases through June 2022 will end the latest cycle of quantitative easing and could signal the end of a 40-year long-term cycle of declining interest rates, from a 15.8% yield on the 10-year U.S. Treasury note in September 1981, to a low yield of 0.32% in March 2020.
Resources, recommendations, and reminders
- There’s still time to claim the Employee Retention Tax Credit for January 1, 2021 through September 30, 2021. Eligible businesses can file retroactive claims for wages paid in prior tax quarters. Ask your CPA or Financial Advisor if your business qualifies.
- For employees with a partial or fully remote work plan, allocate 2022 municipal income tax withholding based on the percentage of a workweek spent at an employer’s office location, an employee’s home, and any other recurring work location.
Westfield Bank has grown to $2 billion in assets and serves 25,000 customers throughout the NEO regional metro area comprised of Cuyahoga, Mansfield, Medina, Stark, Summit, and Wayne counties in addition to providing insurance premium financing, loan, and deposit services to independent insurance agencies and RIAs across the US.
Westfield Bank's vision and strategies are built on a “mobile-first” platform providing real-time, secure, cloud-based, comprehensive digital loan, deposit, and payment capabilities.
Westfield Bank, for the second year in a row, is a 2021 recipient of two awards for best places to work, in addition to the Northcoast 99 Industry Award of Excellence in the Finance & Insurance category.
The information contained herein is provided for informational purposes only, and should not be construed as advice on any subject matter. You should not act or refrain from acting on the basis of any content herein without seeking other professional advice. Any statistics contained herein have been obtained from sources deemed reliable, but the accuracy or completeness of the information cannot be guaranteed and is expressly disclaimed. The information herein is information of general nature, and may or may not address your situation. As such, the author and Westfield Bank disclaim all liability for actions you take or fail to take based on this information.?
Copyright ? Westfield Bank, FSB 2021. All rights reserved.
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3 年Well written, useful and brief. Thank you, Jon.