Consumer Price Index SummaryTransmission of material in this release is embargoed until 8:30 a.m. (ET) Wednesday, September 13, 2023 USDL-23-1972 Technical information: (202) 691-7000 * cpi_info@bls.gov * www.bls.gov/cpi Media contact: (202) 691-5902 * PressOffice@bls.gov CONSUMER PRICE INDEX - AUGUST 2023 The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.6 percent in August on a seasonally adjusted basis, after increasing 0.2 percent in July, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.7 percent before seasonal adjustment.

Full Report:  ​https://www.bls.gov/news.release/cpi.nr0.htm 

By Michael Lodge - The Business Advisor - www.lodge-co.com:  The Employee Retention Credit (ERC) has been a lifeline for businesses affected by the COVID-19 pandemic. Designed to provide financial relief to companies that continued paying employees during government shutdowns or experienced significant declines in gross income, the ERC is a refundable tax credit. However, recent reports have highlighted the rise of third-party companies making extravagant promises of large credits without adequately informing businesses about the rules and qualifications associated with the ERC. In response, the Internal Revenue Service (IRS) has issued a warning about potential fraud and emphasized the importance of understanding the credit's requirements. This article aims to shed light on the ERC rules, caution against fraudulent claims, and encourage businesses to seek guidance from qualified tax professionals.

Understanding the ERC and Its Rules:  The ERC was introduced as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020. It was later expanded and extended by subsequent legislation to provide additional support to businesses. The credit is available to eligible employers who retained employees and continued to pay wages during periods of significant disruption caused by the pandemic.

To qualify for the ERC, businesses must meet specific criteria. These include experiencing either a full or partial suspension of operations due to government orders or a significant decline in gross receipts compared to the same quarter in the previous year. Eligible employers can claim a percentage of qualified wages paid to employees during the mandated shutdown by government, subject to certain limitations, for specific periods determined by the IRS.  If you take the credit, you will need to file an amended business tax return to apply the credit.  You may owe corporate taxes at that time if it increases you net income. The IRS will examine the credit that you took for ERC, they will also look at any PPP money you took to see if you are double dipping.  If they deny you the credit later on there will be interest and penalties do.  You will need to document the time you were shut down, copies of the shut down mandate by the government. This is just a brief overview, please talk to your tax accountant on the issue of qualifying.  

The Role of Third-Party Companies:  Unfortunately, some third-party companies have sought to take advantage of the confusion and financial distress caused by the pandemic. These companies often make enticing promises of substantial credits, with claims as high as $26,000 per employee. However, they frequently fail to inform businesses about the eligibility requirements, the necessity of filing an amended return, and the risks associated with improper claims.

IRS Warning on Fraudulent Claims:  Recognizing the potential for abuse, the IRS has taken action to warn businesses about these unscrupulous practices. On IRS.gov, the official website of the IRS, a renewed warning has been issued regarding employee retention credit claims. The agency highlights the compliance risks associated with making improper claims and emphasizes the importance of understanding and adhering to the ERC rules.

IRS Web Site:  irs.gov

Protecting Your Business:  To avoid falling victim to fraudulent practices and potential audits, it is crucial for businesses to exercise caution and due diligence when considering third-party services related to the ERC. Here are some essential steps to protect your business:
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1. Consult a Tax Professional: Engage the services of a qualified tax accountant or advisor who can guide you through the ERC rules, determine your eligibility, and assist you with the necessary documentation and filing requirements.

2. Educate Yourself: Take the time to read and understand the guidelines and notices issued by the IRS. This will enable you to make informed decisions and identify any red flags or misleading claims made by third-party companies.

3. Be Wary of Promises: Exercise caution when approached by third-party companies guaranteeing substantial credits without adequately assessing your eligibility. Remember that if a deal sounds too good to be true, it probably is.

4. File Accurate and Amended Returns: Ensure that you file accurate and complete tax returns, including any amendments required to claim the ERC. Failing to report the credit properly or including false information may result in potential audits and penalties.

The ERC is available - if you qualify for the ERC credit and have complied with the rules of filing, you should be ok.  But you want to make sure you qualify and not have to face any IRS questions and determinations down the road.  Compliance will make sure you are protecting your business.  Again, talk with your accountant.

For business advisory / coaching - schedule a confidential session online at:  http://www.lodge-co.com 

By Michael Lodge, The Business Advisor - www.lodge-co.com:  I know that I normally write my blogs about business, but today it is about our spiritual needs of faith and forgiveness.  Two vital areas of our spiritual life that makes us better people and leaders.  I believe that in order to be good at whatever you do, especially as a leader, you have to have a spiritual base and path.

The concept of faith and forgiveness holds immense significance in various religious and spiritual traditions worldwide. It serves as a guiding principle for individuals seeking personal growth, peace, and reconciliation. Luke 6:37 beautifully encapsulates the essence of this profound connection, reminding us of the transformative power of forgiveness and the importance of cultivating a non-judgmental attitude towards others.  The verse reads, "Do not judge, and you will not be judged.  Do not condemn, and you will not be condemned.  Forgive, and you will be forgiven"  There are three messages in that verse, but today we will focus in on "forgiveness".

Embracing Non-Judgment:  When we refrain from judging others, we create an environment of acceptance and compassion. By recognizing the inherent complexity of human nature, we open ourselves up to understanding and empathy. This practice allows us to transcend our own biases and preconceived notions, fostering deeper connections and enhancing our spiritual well-being.

Abstaining from Condemnation: Condemnation can be detrimental to our spiritual growth and hinder our capacity to forgive. When we condemn others, we often fail to acknowledge their potential for change and growth. By abstaining from condemnation, we create room for personal improvement and encourage a collective environment that nurtures forgiveness and growth.

The Transformative Power of Forgiveness:  Forgiveness has the power to liberate both the forgiver and the forgiven. It allows us to release the burden of anger, resentment, and pain. When we forgive, we let go of negative emotions that can poison our hearts and minds, offering an opportunity for healing and redemption. Moreover, forgiveness enables us to break free from the cycle of resentment, paving the way for healthier relationships and personal growth.

Prayer: A Pathway to Forgiveness:  In our prayers, we seek forgiveness from a higher power, acknowledging our own fallibility and imperfections. We ask for guidance and strength to navigate the challenges of forgiving others, particularly when wounds run deep. Through prayer, we find solace and support, enabling us to extend forgiveness to those who have wronged us. It is in this sacred space that we cultivate the humility, compassion, and courage necessary for true forgiveness.

In your private times through your daily prayer, ask for forgiveness and ask that God will help you to forgive.

Embracing faith and forgiveness as integral aspects of our lives allows us to experience personal growth, healing, and reconciliation. Luke 6:37 serves as a profound reminder of the interconnectedness between the forgiveness we seek and the forgiveness we offer. By fostering a non-judgmental attitude, abstaining from condemnation, and striving to forgive, we embark on a transformative journey of compassion, understanding, and spiritual enrichment. Through prayer, we find solace and strength, enabling us to extend forgiveness to others and experience the liberating power of forgiveness in our own lives.

By Michael Lodge - The Business Advisor - www.lodge-co.com: Across the United States, a growing sentiment of disillusionment and mistrust has taken hold among the American people towards their government. Citizens believe that politicians, once elected, frequently ignore their constituents' voices and pursue self-serving agendas that fail to address the needs of the people.  Politicians ignore their oath of office to protect and defend the constitution. From unchecked government spending to questionable foreign policies and a perception of corruption, a series of grievances has eroded the trust Americans have in their government. This article aims to explore the reasons behind this lack of trust and the urgent need for change to restore faith in the American political system.

Disconnected Politicians:  One of the primary reasons for Americans' waning trust in government is the perception that elected officials no longer prioritize the will of the people. Despite promises made during campaigns, politicians have been accused of disregarding the concerns and demands of their constituents. This disconnect between politicians and the public has left Americans feeling voiceless and disempowered, leading to frustration and a sense of betrayal.

Out-of-Control Spending:  Another major source of frustration is the perception that the government continually engages in reckless spending. Despite public outcry for fiscal responsibility, politicians often ignore these demands, resulting in a ballooning national debt. Americans witness their hard-earned tax dollars being squandered on projects that do not align with their priorities or benefit the nation as a whole. This disregard for responsible financial management further erodes trust in the government's ability to make sound decisions.

After politicians are elected they go to their capitals and forget they have people they are representing, that they should be protecting by abuse of the pocket book.  Instead they follow their political party and they spend on political issues, not what is needed by the American people.  They create more debt and a financial burden on the American people.  Americans do not want more spending, they have seen the damage it has caused during the pandemic and currently on bills passed that were lies to the American people.  Inflation reduction act had nothing to do with inflation.  Debt reduction act had nothing to do with reducing debt.  These bills get passed and then the American people hold the bag for these things to get paid.  These bills do not help the American people.

Questionable Political Agendas:  A significant factor contributing to Americans' mistrust is the perception that politicians prioritize political agendas over the well-being of the American people. Citizens witness policies being pushed forward that seem to serve partisan interests rather than the common good. This divergence between the needs of the people and the actions of their elected officials deepens the skepticism and reinforces the belief that the government is not working in their best interest.

Foreign Policy Concerns:  The involvement of the U.S. government in foreign conflicts, such as the situation in Ukraine, has also strained Americans' trust. When citizens perceive that their government is engaging in activities that do not directly benefit the American people, they question the motives and priorities of their elected representatives. The perception of corruption and the alleged acceptance of bribes by high-ranking officials further contributes to the skepticism surrounding foreign policy decisions.  The country of Ukraine has even corrupted the Biden family, placing the president in a weak compromised position.  We did not have an issue with Russia.  Russia nor Ukraine are on our borders.  Billions of dollars and war machines have been sent to Ukraine with no system in place as to how the money is being spent.  Sending our own weapons and war machines has depleted our own military strength.  Biden said the other day, stupidly, we ran out of bullets.

China is a threat to America and yet we have no strategy to deal with China.  Biden says he knows the leader, has traveled with him several times, and yet the leader of china doesn't even want to talk to the United States.  They see, smell, weakness and they are going to take full advantage of this weakness.  And here we sit today with a threat of war with China.  The Chinese saying is - muddy waters make it easy to catch fish, "-that is, that it's possible to use a crisis or period of chaos for personal benefit.  China has muddied the waters and American leadership is falling for it.  Americans see what is going on.

Protection of Political Elite:  A prevalent sentiment among Americans is that the law protects the political elite while disproportionately targeting ordinary citizens. Instances where politicians seem immune to the consequences of their actions, while everyday Americans face legal repercussions, deepen the feeling of injustice. This perception reinforces the belief that the government operates under a double standard, where the powerful are shielded from the consequences of their wrongdoings.

Growing Social Issues:  The deterioration of safety and security within American cities has only added to the erosion of trust in the government's ability to protect its citizens. Rising violent crime rates in many urban areas have left Americans feeling unsafe and abandoned by their elected officials. The lack of effective responses to these challenges further fuels a sense of frustration and impotence among the populace.

Politicians shout for gun control but never address the issue as to what is going on in these communities.  They turn away from the problem and politically blame guns or other politicians.  Instead of focusing on Ukraine, look at the problem in these communities of violence.  Don't throw money, it never works.  Find the cause and effect of the problems in these communities and then work on them.  Instead of pushing trans rights, focus on the schools that need help, our students have fallen in their education.  Because of the pandemic and lock-down, students are way behind and need help.  

Economic Impact:  The economic consequences of poor policy decisions, such as inflation resulting from weak economic policies, have significantly affected the American people. As they witness the diminishing value of their hard-earned wages and the rising costs of goods and services, Americans rightly question the competence and effectiveness of their leaders. The economic burden placed on the populace further amplifies the demand for change and fuels the growing discontent.

Even with the bragging from Biden on his bidonomics, the economy remains weak.  High prices are still hurting the American family.  Gas prices have started to rise again.  Americans are having a hard time paying for their cars with interest rates so high and car prices are out of control.  The price of cars are no longer affordable to Americans.  Interest rates are too high for purchase a car, especially on used cars.  Car repossession climbs daily, banks are taking back the cars they funded because American's can't afford the high payments.  Then if we look at the commercial real estate market, banks are now calling in their loans for non-payment.  Interest rates have risen so high that the payments grew, and commercial buildings are basically empty with no tenants to pay the mortgage.  This is now hitting the banks and it will make them even weaker.  Owners of commercial real estate are walking away, handing the keys back to the bank.

We can go on and list even more red flags that have been created by bad government.  Congress has members who lie, create chaos, are socialist in belief, who push an agenda harmful to the American family and businesses.  Americans see this, they talk about it at their picnics, they read about it on social media, they express their concerns, and they are not happy with the direction that America is going.  If you remember the reason why America was formed was to get away from a over bearing taxing king.  They came to America and started a new government.  England said no, we want your taxes.  America had taxation without representation.  American's see that happening now, taxation without representation, and it is killing America.  Americans are asking for change, they want their voice to be heard, they want government to stop spending and cut costs (Americans do it every day with their budgets). 

​Where will this mistrust of government lead us?  America has revolted before, will they do it again?  How close are we to that boiling point?  That is the questions on American's minds.