CIOs are not prepared for the “fiscal cliff”

Few CIOs have plans in place on how to deal with the “fiscal cliff”

CIOs are not prepared for downturn - As Congress and the President play a game of chicken with the “fiscal cliff” and changes in tax laws for private businesses and massive cuts in spending for federal agencies, which are slated to take effect in January, few CIOs have plans in place of how to deal with its impacts.As Congress and the President play a game of chicken with the “fiscal cliff” and changes in tax laws for private businesses and massive cuts in spending for federal agencies, which are slated to take effect in January, few CIOs have plans in place of how to deal with its impacts.

For IT businesses, the fiscal cliff means higher taxes on research and development and higher tax rates for s corporations and LLCs. For example potentially going away is the $114,000 tax provisions allowing small businesses to write off asset-related expenses, and the disappearance of bonus first-year depreciation on expenses.

With sequestration comes a cut of $66 billion in spending cuts among federal programs - as the biggest threat to the overall IT industry. If enacted, the cuts would be distributed evenly across defense and non-defense programs, and the money that pays IT contractors serving federal agencies of all kinds could suddenly dry up.

However serious these potential changes are, many CIOs are not have been paying close-enough attention to or have plans in place on how to address the potential adverse impacts.

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