Yesterday, the House voted 405 to 16 to repeal legislation (passed in 2005) to impose a 3% withholding tax on government contracts. The original bill has been delay until 2012 and has not been implemented.This is great news for small businesses! Small Business California has been very vocal in supporting the repeal. It appears that this has bipartisan support so we are hopeful it will be passed in the Senate. We will let you know when it goes to the Senate.
Yesterday, I received a call from a reporter asking about collection of receivables for small businesses, given the downturn in the economy. He told me two surveys have been done one saying time for collection is 23 days and another being 36 days.
What has been your experience? Have you seen an increase in the time to collect receivables? Are you writing off receivables? Is the delay in collecting receivables creating cash flow problems for you?
I am always looking for issues affecting small business. If you have an issue that is broad based and affects small businesses that have not been brought up in a previous email from me I would like to know. Please make the subject of the issue state based as I cannot deal with local issues.
I hope you find these emails beneficial and if you are not a member, I hope you will consider joining Small Business California. You can do so by going to our website www.smallbusinesscalifornia.org
Small Business California
2311 Taraval Street
San Francisco, CA 94116