While this week’s “fiscal cliff” agreement may have saved us from recession, many in the business community are unhappy with the prospect of increased taxes and lack of progress on solving our nation’s deficit problems. But fear not! Sure, many companies in the Philadelphia area will experience pain as a result of this agreement. But quite a few will celebrate the deal. Celebrate? Yes! Here are just a few local firms that should be happy.
Price Waterhouse Coopers (2001 Market Street, Philadelphia). One thing we all know: Taxes are going up. Rates will be higher on the “rich.” The payroll tax holiday is over. And although certain breaks have been extended for businesses, most of us will be feeling the pain of higher levies on passive income, disallowed deductions and Medicare increases. It’s all very confusing and complex. Which is exactly why it’s great to be in the accounting business!
Kirk & Nice (80 Stenton Avenue, Plymouth Meeting and other locations). Kirk & Nice has been burying people since 1761, and although you could argue that the 1860s were a pretty good time to be in the funeral business, I’m thinking that the next few years will rival those good old days—particularly because the new fiscal cliff resolution has extended estate tax benefits to exclude the first $5 million in assets instead of just $1 million. If no changes were made, death taxes would have been much, much higher. So now it’s as good a time as any to snuff it.
The Garces Group (2929 Arch Street, Philadelphia). Jose Garces is our very own local restaurateur extraordinaire. Why, just last week I had lunch at JG Domestic and enjoyed three delicious spare ribs and a beer and a coffee for about, oh, 40 bucks, including tip. That’s right: three whole spare ribs! And the sugar for my coffee was complimentary too. The Philly food scene is full of great restaurants like this and now that the cliff has been avoided and our economy has been saved from ruins, we can all enjoy paying $6.67 (plus tax) for one delicious, Jose Garces-prepared spare rib. Bon appétit!
Robert Half (1735 Market Street, Philadelphia). Judging from this chart, the fiscal cliff resolution has done little to solve our fiscal problems. And there’s lot more drama to come: debt ceiling debates, budget negotiations, large cuts in spending. All of this is sure to add to what is already a high level of uncertainty among small-business owners like myself. I’m predicting that many businesses will look to outsourcing more than ever. That’s where staffing firm Robert Half comes in. Let’s face it: hiring full-time employees is so 2007.
The Flyers (Wells Fargo Center, Philadelphia). Aren’t most of these hockey players from Canada? Lucky them. They’ve got good health care, a strong economy and a balanced budget (at least compared to the U.S.). As long as the NHL lockout continues, both the players and the team will save a bundle on higher taxes! Revenues and profits are so 2007 too.
The Apple Store (1607 Walnut Street, Philadelphia). Actually, this place prospers no matter how annoying their staff is and how ridiculously expensive it has become to purchase a basic MacBook. Apple has kicked butt during the past few years of what is arguably one of the worst economic periods in American history so why shouldn’t they continue to prosper regardless of the fiscal cliff outcome? And yes I’m jealous: My company sells Microsoft products!
Comcast (1701 John F Kennedy Boulevard, Philadelphia). No matter how depressing the deficit mess gets, we’ll always have 30 Rock and The Office to keep us laughing every week and our spirits high for years to come! Wait. What?
Starbucks (various locations). If you’re into stock-picking, then buy Starbucks. Not because of the coffee (I prefer Wawa) or the prices (I prefer Wawa) or the food selection (I prefer Wawa). It’s because this budget debate, and its impact on the economy, is far from over. Employers will not be motivated to hire—which means that there will be lots of jobless people searching the want ads on their overpriced MacBooks and spending their unemployment checks on double lattes at their local Starbucks.
Piazza Honda (6935 Essington Avenue, Philadelphia and other locations). Luxury cars are so 2007! The resale value of your Accord will be excellent for when the good times return, and you can trade it in for that Lexus you really want.
I’m barely scratching the surface, but I think you get the point. The fiscal cliff deal may be bad for some, and may certainly be good for others. I wish these Philadelphia companies success in 2013. So bring on the debt ceiling!