Tags: Barack Obama | tax | sub | chapter | s | irs | barack

New Tax Will Crush Small Businesses

Tuesday, 15 Jun 2010 02:14 PM

By Wayne Allyn Root

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I am an economic refugee from California. I escaped because of the impossible business climate — the highest income and business taxes in the country, the highest workers comp taxes, out of control government employee unions, the most lawyers in the country.

It was (and is) a recipe for economic disaster.

For the last decade, I’ve been traveling the nation as a best-selling author, business speaker, and political leader comparing California to Nevada. At each stop I extol the virtues of Nevada: smaller government, fewer government employees, less power for unions and lawyers, far lower taxes.

Quite simply, Nevada gives a small business owner a chance to live, to survive, to prosper. All small business owners want is for government to get out of the way and stop stealing our money. We can’t build a good business without the seed capital you are stealing.

We can’t create jobs without that money you are stealing.

Yesterday my gut instincts were validated in a big way. Chief Executive magazine surveyed business leaders across America and they rated Nevada as the 5th best state in America to do business and California dead last.

The bottom five states (Massachusetts, New Jersey, Michigan, New York, and California) are all deep purple states with high taxes, too many government employees (that loot and bankrupt the taxpayers), too many rules and regulations that strangle business, too powerful unions, and too many lawyers.

Yet on a national basis, Obama and his socialist friends in Congress are trying desperately to replicate California, New York, and Michigan, where business owners, retirees, and taxpayers are fleeing by the hundreds of thousands. In just the past few weeks Obama and his anti-economic freedom Congress have tried to pass two bills that each could wipe out small business, destroy millions of jobs, and cause a mass exodus of business owners and high income earners out of this country (just as millions of taxpayers have escaped from New York, Michigan, and California).

Taken together they are a message from Obama: we are out to seize your property, steal your money, and destroy your life if you own a small business.

The first one was part of the 2,000 plus page Obamacare bill that passed, so it is now law. Starting in 2012 every business owner in America must send out a 1099 to the IRS for every bill they pay that adds up to $600 or more in the course of a year.

The cost of compliance will be billions of dollars, all in the middle of a depression. Very few small business owners have the time, money or manpower (teams of accountants, controllers, bookkeepers) to comply with this new law.

It is intended to bleed small business dry and suffocate us under a blizzard of paperwork and IRS tax compliance. If it isn’t overturned by a new Congress before Jan. 1, 2012, say goodbye to millions of jobs.

The second disaster should be called “The Destroy Small Business Instantly Act.” It is part of the “jobs bill” that is coming up for a vote this week. Warning: Congress is trying to create jobs again, even though every other time they’ve tried, they’ve failed miserably. When will they learn? Government can’t create jobs; it can only waste money and kill jobs.

Congress is proposing to hit every small business in America with a deadly new 15 percent tax on profits. That’s on top of all the stifling taxes already on the books.

This new 15 percent tax will be assessed on every Sub Chapter S company, which defines every small business and entrepreneur in this country. S Corps are primarily sole proprietorships and businesses of less than five employees that create most of the jobs and pay most of the taxes in America.

They need this 15 percent of profits, in the middle of a depression, to create new jobs, or keep current ones employed.

This bill would instantly put most of the small businesses in America out of business. Since small business creates 75 percent of all new jobs, think of the implications. This is Obama’s way to take the cap off 15 percent FICA taxes without anyone noticing.

This dishonors the hardest working people in America — small business owners.

It’s small business against Obama. It’s small business versus big unions and big government. It’s capitalism and what’s left of the American dream against socialists, marxists and communists.

This bill must be stripped out of the jobs bill before small business is wiped off the face of the earth.

Please call your congressman and senator today.

Wayne Allyn Root was the 2008 Libertarian vice presidential candidate and now serves on the Libertarian National Committee. His newest book is entitled, “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts.” For more of Wayne's views, commentaries, or to watch his many national media appearances, please visit his website: ROOTforAmerica.com.


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