Insight from Jimmy Dickey in December’s Memphis Business Journal
James “Jimmy” S. Dickey, Jr., senior member, The Marston Group PLC, recently weighed in on the business impact of the long-awaited reinstatement of the 2001 “Bush tax breaks” and expounded on whether or not the new two-year extension changes anything.
According to Dickey, “Uncertainty breeds indecision. I believe that business owners and consumers operate in a more predictable manner when they feel more comfortable about the direction the economy is taking. Business owner/operators especially desire a regulatory environment that is stable. No one wants to make expansion, hiring or investment decisions when they do not feel confident that the rules could change on them mid-project. And investors are definitely influenced by tax rates when buying and selling. Thus tax rate uncertainty had to some extent a chilling effect on business and investment activity. I think now that we have at least a two-year road map to follow for federal tax purposes that some delayed business and investment projects may move ahead.”