Senator George McGovern’s epiphany in regard to running a business is a lesson learned that would benefit ALL of our congressional leaders who sit on their fat cat laurels passing bills they have zero experience in governing over.
After spending years passing bills that impacted business owners, McGovern finally became one. And learned what a mess he had a hand in creating. Instead of creating jobs, these supposed leaders were, and still are, squashing them.
Running A Business in Real Time
In McGovern’s case, he ran a hotel, until he ran it bankrupt. The guy who was dictating to entrepreneurs what they needed to do, was a complete failure on his unimaginative own.
So it’s no wonder, with congresses, and this president’s continued assault on small businesses, job recovery remains sluggish. The new health care laws have created a big black hole in what businesses owners can expect while they continue to drown in law compiled upon law making progress an uphill battle with a brick-filled backpack.
And just when the average business owner feels squeezed from both ends, they get more.
More Paperwork
From this day forward, for every $600.00 a business spends on services and merchandise, the owner of said business is mandated to file 1099 forms for each purchase. Thereby, reporting income, to the IRS.
Now, it’s no surprise that it’s your duty to report your income, but this new law turns small business owners into informants, thereby doing the work of the IRS. Don’t small business owners have enough to do? Like make payroll?
Spending $600 in the course of doing business is easy for a lot of companies. Heck, Carrie Bradshaw spent that on a pair of Jimmy Choo’s!
A person owning, something as simple as, a party planning stores, could easily drop $600 10 x’s a day, for stock and inventory. For small business owners, that would make it easier to keep up with the Kardashian’s, than this crazy amount of paperwork.
An article I caught in The New York Enterprise Report explains this as abuse of power as follows:
“Right now businesses must send and file 1099’s for payments to non-corporations exceeding $600 that cover non-employee services, interest, dividends, and rent. Beginning in 2012, this requirement will be expanded to cover all payments (including corporations) in excess of $600 for all services and merchandise.”
“This mandate, of course, has nothing to do with healthcare. Instead, it’s an effort to expand government revenues by making sure that these payments received have been properly reported as income.”
“However, the burden on businesses boggles the mind, given the number of purchases made by each firm in a year that meet the $600 threshold. It’s hard to imagine how businesses or the IRS will handle the resulting inevitable avalanche of paperwork.”
I couldn’t have said it better.
So much for making an economic comeback!
Renegade Financial Planner
