DESPITE YOUR PLANNING
YOU CONTINGENCY PLAN
YOU ARE ALERT FOR CHALLENGES AHEAD
COVID CRISIS LESSON
THE COVID CRISIS
Almost all entities that can access have already accessed or are in the process of accessing the COVID-19 disaster funding. State and local governments had found themselves dependent on formulaic handouts from the Federal government to avert financial disaster. Such precarious dependency was and is avoidable.
In fact, the financial benefits we deliver to clients are far more significant in amount and in long-term strategic value.
The challenge for state and local governmental entities today is perhaps the greatest it has been since the Great Depression. During the Covid Crisis, revenues had fallen precipitously, as physical retail sales evaporated due to the shelter-in-place edicts. The future of sales tax revenues were in doubt before the COVID crisis due to the rapidly increasing transfer of sales to internet entities that are not paying local and state sales taxes. A real crisis was upon state and local government, as revenues had fallen off a cliff at the same time that social service demands and costs had soared due to the historic unemployment levels.
We had the solution during the COVID Crisis and continue to have the solution to avoid future crises - NOW. One that can be implemented - NOW. One that can save government jobs - NOW. One that can preserve government services - NOW.
So, let us help you in these most challenging of times as well as to avoid the financial precipice in the future. Let us help you avoid the abyss. The answer to the challenge of the COVID and future crises is within your reach - by simply reaching us by phone, email, the form below, or by scheduling a free consultation.
THIS ISN'T THE FIRST RODEO
When in the midst of a crisis, it is easy to forget the past when one is so consumed with staying alive in the present. But we'd be remiss if we were to ignore the following facts:
1. The COVID economic crisis is the second major financial crisis within a span of 12 years.
2. The two financial crises are the first time since the Great Depression that personal income fell in two successive separately identified recessions/depressions.
3. Even more telling is the fact that prior to the recessions of 2008 and 2020, there hadn't been even one recession since the Great Depression where personal income fell during the recession period.
4. In fact, Personal Income, Personal Consumption and Compensation of Employees declined in the 2008 and 2020 recessions - for the first time since the Great Depression. Yet, there had been 18 years of recessions (and 14 separate recessions) since the Great Depression - and not one had seen declines in all three major real indicators of economic decline until the 2008 recession (and now the COVID crisis).
BE READY FOR THE NEXT RODEO
Since our founding almost 20 years ago we have been successfully insulating our clients from the most severe effects of recessions by providing them with unique solutions to their shortfalls or even long-term decline in revenue. Let us do the same for you. The consultation is free. Just let us know you'd like to talk.
For example, just imagine if the tax and job generating investments being made abroad were instead being made in your taxing jurisdiction (see Case Studies). The graph to the right reflects the significant opportunity lost over the past two decades, as annual investment abroad by U.S. companies increased from $1.32 trillion in 2000 to $6.01 trillion in 2017 - creating wealth overseas rather than at home.
OFFICIAL RECESSION YEARS
SOURCE: U.S. DEPARTMENT OF COMMERCE, BUREAU OF ECONOMIC ANALYSIS
1929 1945 1969 1980 2001
1930 1948 1970 1981 2008
1931 1953 1973 1982 2009
1932 1957 1974 1990 2020
1933 1958 1975 1991
DECLINE FROM PRIOR YEAR IN PERSONAL INCOME, PERSONAL
CONSUMPTION EXPENDITURES & COMPENSATION OF EMPLOYEES RECEIVED