Now is not the time to be delusional nor a time put our heads in the sand. Rather it is time to sober up and face reality.
The fact of the matter is this: the health and economic situation that the United State and the World is facing is bleak.
Economically, we are not going to experience a "V"-shape recovery that some experts want to grasp in their denial of reality.
This is a long, slow painful recovery that we face. This is a potential Depression. This is not the financial crisis of 2008-11 which was primarily a breakdown in the financial and liquidity markets. Rather, this is a sudden, forceful and violent stop of the economy. Like a fast moving car hitting an old oak tree.
Coming out of 2008-11 economic activity still took place; today and going into the future we are seeing large and potentially larger full cessation of economic activity across many industries and geographical locations. Our friends and neighbors will face unemployment, foreclosures and bankruptcies.
Businesses will close or retract; many will not reopen. Value is being destroyed as I write these words. But we will all get through this. But to do so, you need to take action and more importantly our government leaders need to take action.
What we need is cash. We do not need regulations that free up more sign space for restaurants as I have seen some locations do. More room for business to put up signs that say "Sorry, we are closed" does not help.
On behalf of our clients, I call on state and local governments and agencies (RITA) to stop and defer the collection of taxes for 90 days just as the federal government has done.
I encourage the federal and state governments to direct payments of cash to all taxpayers making less than $500,000 of at least $5,000 per adult and $2,500 per child total.
Moving forward, all rent expenses paid by business should be 100% deductible for businesses in 2020. Rent is one of the largest expenses that businesses pay outside of wages; fully deducting rents in turn frees that money up to pay wages.
Further, business should be able to fully deduct certain capital expenses and not have to depreciate them over time. Again, this will free up monies to protect investments that business owners have made while freeing up cash for their employees.
On the local level, officials can suspend the collection of fees for utilities and trash pickup. These are just some immediate actions our leaders must take at ALL levels of government to the extent that it is within their province to do so.
We will get through this, but it will be hard and arduous. I have helped many clients in 2008-2011 get through those years in a variety of ways. We are here to help once again, and we will.
But the economy is in triage. The economy needs to be stabilized and I call on government officials to take the steps above to infuse liquidity and cash immediately into the economy.