Just today I read an article on www.moneycentral.msn.com that talked about the unemployment rate possibly going to 10%.
At a 10% unemployment rate the economy will continue to be challenged. To have the economy recover, it’s important to not only have people stop losing their jobs but it’s important the unemployed get jobs and start spending money again.
As business people, our resources are going to be stretched to the max and we are all going to be looking for ways to keep everything going. One of the mistakes I see business people often make is that it’s very easy during a period of economic downturn to think you can use tax money as your bank to pay bills or payroll and you will just replace it later when you do more business.
The days and months fly by and if business doesn’t recover when the tax bill comes due there just isn’t the money to pay the tax man. Then what? It doesn’t matter if it is local, state or federal taxes. The tax man has no sense of humor. The government will immediately place a large penalty on the taxes you owe plus interest.
Not paying your taxes is a serious matter that can put you out of business. If you are using tax money to operate your company, realize that you are in trouble. Stop and rethink your business. Get a new business model and get your company turned around. Don’t keep doing the same things because you will get the same results.