Small Business Concerns With the Section 800 Panel Recommendations On Department
Small Business Concerns With the Section 800 Panel Recommendations On Department
Taxation United States Congress House Committee On Small
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Cash flow really is the life blood of small business. Small busi- nesses are willing to offer discounts for the expeditious payment of invoices, and it is not atypical for our members to offer a 2 percent discount off the invoice amount if the payment is made within the 15 days of the invoice date. It is important for small business be- cause it is a way for them to calculate with some specificity the cost of their money and to ensure that money will come into their coffers in a timely fashion.... However, the recommendation on behalf of the Section 800 Panel offers absolutely the worst of both worlds for small businesses. Not only is the inclination to delay payment and indeed receive funds back into the treasury of those companies in a much more elongat- ed period of time, but indeed you are also going to see the likeli- hood of the amount that you do receive will be less than what you otherwise would. On behalf of the coalition, we would urge you to strongly consid- er the effectiveness of current law.
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