December 2011 Financial News Line Items

According to the U.S. Bureau of Labor Statistics, in June 2011, the average costs for retirement and savings benefits in private industry were $1.03 per hour worked, or 3.7% of total compensation.

Bank loans are the most popular form of financing among small businesses. However, a survey by the Pepperdine Private Capital Markets Project found that of 1,667 small businesses that applied for a bank loan over the past 12 months, only 44.5% were approved. On average, small business owners spent between 16 and 24 hours contacting more than two banks trying to secure a loan.

Wages and salaries account for 70.8% of individual taxpayers' 2011 gross income, according to data from the Staff of the Joint Committee on Taxation. The second largest source of income at 10.6% is Social Security payments and pension and IRA distributions.

When asked in a recent Citibank survey how they planned to improve or grow their business in 2012, small business owners said they will increase their marketing efforts (61%); obtain better pricing from suppliers, vendors, or landlords (58%); introduce new products and services (56%); and work longer hours (45%).

_{The general information in this publication is not intended to be nor should it be treated as tax, legal, or accounting advice. Additional issues could exist that would affect the tax treatment of a specific transaction and, therefore, taxpayers should seek advice from an independent tax advisor based on their particular circumstances before acting on any information presented. This information is not intended to be nor can it be used by any taxpayer for the purpose of avoiding tax penalties.}