Today I want to hark back briefly to last week’s blog.
I received some utterly disbelieving correspondence from small business colleagues last week concerning the business mandates in ObamaCare (as well as FinRe) legislation. Well, accept it. It’s for real. Citing again last week’s prime example, it is utterly true that starting in 2011 all businesses must file separate 1099 forms with the IRS to report any purchases totaling more than $600. $600 for paper clips? File a 1099. $600 for a new computer? File a 1099. $600 for toner? File a 1099. $600 for Christmas cards? File a 1099. $600 for coffee? Yup. File a 1099. The National Federation of Independent Business says this will impact 40 million businesses. Congress should call ObamaCare “The Accountants’ Full Employment Act.”
The reason for this onerous bureaucratic burden is that the Congressional backers of ObamaCare hypothesize a ten year realization of new revenue of $17 billion from tax cheats. Well, I pay my taxes and I am all for those lousy tax cheats paying theirs. But, damn, the lost productivity from such madness will be phenomenal. Surely, there’s a better way to raise funds without impeding the free enterprise system.
Suffice it to say that this egregious single example of Congressional overreach (ObamaCare) is one of a plethora of expensive disincentives and distractions for most of us in growing our businesses or adding employees. If unemployment is to decline and this recession is to recede they will do so in tandem with the fortunes of entrepreneurs and small business. Why hamstring us like this? Regardless of your political persuasion, this level of bureaucratic interference is impractical and counterproductive.
As Rev. Henry Ward Beecher said in 1887, “The worst thing in the world, next to anarchy, is government.” Amen, Brother Henry.