Unbridled Optimism!

I must confess I am an unbridled optimist. I have always been the glass runneth over type, as opposed to a half full or half empty—kind of person. At social events, I will not shy away from the “doom and gloomers.” I usually confront them with a positive comment. The conversation goes something like this: “I can’t wait till so and so is out of office because they are ruining the country.”

My response is, “the only way to ruin a country is for its citizens to abandon it.” William James said, “Pessimism leads to weakness, optimism to power.” Dietrich Bonhoeffer felt that “The essence of optimism is that it takes no account of the present, but it is a source of inspiration, of vitality and hope where others have resigned; it enables a man to hold his head high, to claim the future for himself and not to abandon it to his enemy.”

Here is more good news to confront the “naysayers.” The IRS has just released the “Fall 2013 Statistics of Income Bulletin.” And the news is good—go figure. For tax year 2011, taxpayers filed 145.4 million individual income tax returns. This is an increase of 1.7 percent from tax year 2010. Even better, the adjusted gross income reported on these returns is up 3.5 percent from the previous year. And the icing on the cake is taxable income for 2011 rose 4.4 percent. And knowing the taxpayers predilection for understating income and overstating expenses, I would say the news is even better.

So, has the U.S. government rescued it citizens? I would say, “No.” It’s the citizens of the United States that not only rescued themselves but saved the planet during 2007 – 2009. More particularly, it was the U.S. small business owner, who regardless of economic circumstance—famine, war, or recession—is able to make a living for themselves and their families.

If you are looking for optimism to begin the New Year, then look no further than your neighbor and all those who embrace the “can do” attitude of America. And the next time bad news is heralded at an event, share some good news. Automobile sales are up. Housing sales are up. We have a surplus of oil and we are about to export natural gas. Just being an American is cause for optimism.

Small Things Count!

Today, we are going to start with a word study. A little etymology always livens up a party. According to West’s Encyclopedia of American Law, “De minimis” is an abbreviated form of the Latin phrase maxim de minimis non curat lex, which means, “the law cares not for small things.” This is a legal doctrine by which a court refuses to consider trivial matters.

While De minimis fringe benefits are excluded from an employee´s income and wages, they are deductible by the employer. But the value of the de minimus benefit is not subject to withholding of income, FICA or FUTA taxes.

As you might expect, the IRS is hesitant to specifically classify an item as a de minimis fringe benefit. In the current economic environment, this classification is becoming increasingly relevant as employers think of new and interesting ways to keep employees happy without incurring the costs of raising salaries.

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