The Congressional Budget Office (CBO) today released a report on the Self-Employment Contributions Act (SECA), or unemployment taxes. CBO in its report concludes that self-employed persons are subject to greater taxes under the SECA because while capital income is taxed, not all labor income is taxed. This impacts the allocation of capital and business structures. Of course, most farms pay a SECA tax.According to the study, about 70 percent of the revenue from SECA comes from sole proprietors and the remainder from partnerships. Under the unemployment tax scheme, the Federal Insurance Contributions Act (FICA) taxes wages of employees and SECA taxes net business income (i.e. revenues minus expenses). Thus, the SECA tax base includes returns...
What You Need to Know Today: Commodities were mostly lower across the board today after yesterday’s Federal Reserve meeting hinted at a potential interest rate hike later in 2026. The dollar index reached its highest level in over a year, and a strong dollar makes U.S. agricultural expor...
Tomorrow is the Juneteenth federal holiday, and the USDA, along with the rest of the federal government and the CME, will be closed, so the monthly Cattle on Feed report was released a day early. The total number of cattle on feed in feedlots with 1,000 head or more capacity on 1 June amounted...
From WPI Consulting
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.