For Small Business…It Never Stops
Breezing through the mass of federal laws that are constantly being introduced in Congress, I came across this piece of work that was introduced on July 6, 2011:
H.R.2411 – Reduce America’s Debt Now Act of 2011
To provide for an employee election on Form W-4 to have amounts deducted and withheld from wages to be used to reduce the public debt.
This bill is a perfect example of how far out of touch the members of Congress really are when it comes to small business. Here are the key parts of the bill, as they now stand.
SEC. 2. VOLUNTARY WITHHOLDING FROM PAYROLL FOR REDUCTION OF THE PUBLIC DEBT.
(a) In General- An employee may elect for an employer to deduct and withhold upon the payment of wages by such employer amounts to be used to reduce the public debt.
(b) Requirement of Withholding- Every employer making payment of wages shall deduct and withhold upon such wages any amounts so elected, and shall pay such amounts over to the Secretary of the Treasury at such times and in such manner as the Secretary shall by regulation prescribe.
So, if you are a small business owner and any of your employees decide it is their patriotic duty to help pay off the government’s debt—a debt they did not help to create—it becomes your responsibility to provide the means for them to do that.
That will require your small business bookkeeping department to handle all the paperwork, deduct the money from the employee’s wages, account for the money, maintain the records, send the payment to the Treasury department, and adhere to all the filing requirements that always come with bureaucratic boondoggles.
Since the IRS would obviously become involved, you can be sure that there will be a number of regulations and penalties for improperly filling out the forms, late filings, or other technical mistakes. Just what every small business owner needs right now.
Oh yeah, one more point of interest…the contribution is not tax deductible.
The Secretary [of the Treasury] shall include on such [withholding] certificates a reasonably conspicuous statement that any amounts deducted and withheld from wages under subsection (a) are not deductible as charitable contributions for Federal income tax purposes.
Here is the sponsor of this bill (his first creation since being elected to Congress):
Rep. Rick Crawford
Republican • 1st District, Arkansas • 1st Term • Sworn In 2011
Current Term 2011 – 2012
The National Restaurant Assn was one of the largest contributors to Crawford’s election, and now every restaurant owner in America (with employees) may have more bookkeeping to do, money to withhold, government forms to fill out, and regulations to follow if this bill passes. This may impact, directly or indirectly, every restaurant owner’s decision to hire more people, and/or hold down prices.
Crawford’s district is largely agricultural, so every farmer (with employees) who voted for him could be subjected to more government rules, regulations, and bureaucratic paperwork.
Of course, this is also the case for all farms, restaurants, and every other small business in America. It could hit the smaller firms, with 100 or fewer employees, the hardest, which is 98.2% of all employer firms in the U.S. Smaller firms usually have smaller staffs that are already overworked.
I cannot believe that the good folks in Arkansas would allow someone so out of touch with reality to represent them for another term in Congress.
More importantly, are there any small-business people in the U.S. who even care that people like this are constantly writing laws that make running their business more difficult??
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I’m Back!
Well, I obviously overshot my intended hiatus from my blog. Moving, getting my office set up again, plus some other projects, have all taken much more time than I anticipated.
But, the time off has given me the opportunity to step back and ponder on things relating to the world of small business…especially “smaller” small business. As a result, here are some things that were reinforced in my outlook on small business:
- There are many aspiring entrepreneurs in the world, but many of them are fearful of failing and therefore never start a business.
- The vast majority of business information available today is directed only at the high-tech “darlings” of the startup fraternity (everyone wants to be the next Google or Facebook).
- Five million businesses “disappear” each year in the U.S. and no one seems to care…at least not the government nor the media. (Watch for the upcoming release of my Working Paper on business failures).
- In reading many articles, business blogs, comments, forums, and the like, I am shocked at the level of naïveté, and the lack of business knowledge expressed by the participants.
- There appears to be very few basic or fundamental instructions for starting and running a small business that are comprehensive enough to help get a new entrepreneur started in their business.
So, while I was on hiatus from my blog, I decided to create a comprehensive website of business information and resources for the person who wants to start a small business–or who has just recently started a business–but is not real sure of their next move (or their first).
This new website is designed to work hand-in-hand with my blog by frequently providing updates and new information, in both formats, for the novice entrepreneur.
If you are new to the entrepreneurial world, and are wondering just what entrepreneurship is, what business you should start, or how to start a business…this new website just might have many of the answers you are looking for.
So, if you fall into this category of entrepreneur, take a look at the About page and the Why Another Blog page above, and, if you like what you see…then check out our Business Solutions and Resources website. Simply click here.
We also look for comments and questions from new entrepreneurs, so if there is some question you have about your business, drop us a line on the Contact form, or comment below, and we’ll do our best to answer it for you.
Up The Creek Without a Paddle
I think we have all been up that proverbial creek at some point in our lives…maybe several times. But now we have an answer—we know where to get our paddles so we can safely get back down the creek. Or not.
I hope you have a good week.
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Small Business vs. Congress
How many new business entrepreneurs are aware that “The Restoring American Financial Stability Act of 2010″ that was passed by the Senate in May, contained legislation that would virtually cripple Angel investments? As the bill stood just before passage, it would have required a 120-day regulatory (federal) review of Angel deals, double the net worth standard for Angel certification, increase the income standard from $200,000 to $450,000 per year for certification, and demand more red tape and regulatory review at the state level.
Were you aware of any this going on in the Senate?
It doesn’t take a great deal of analysis to realize that this legislation would have wiped out a large segment of available new business startup money. (An Angel cannot invest in your business without certification as a qualified investor.) Washington acts (regardless of the rhetoric) as though America no longer needs any small business startups.
Fortunately, Senator Kit Bond (R-Mo) came forward in time to write and force passage of an amendment that “postponed” most of the Angel Investor legislation for four years. One of the regulations that remains is the elimination of the inclusion of an investor’s home in the $1 million dollar net worth calculation required to be certified as an Angel Investor.
Another bullet dodged (just) by small business. It is obvious the people on Wall Street control the folks in Congress, and few of either of them has much regard for the small business entrepreneur.
It is up to each and every small businessperson to stay vigilant and be aware of what is happening in Washington…and then make our voices heard. No one else will do it for us.
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Does Anyone Care?
Wars, prejudice, racism, egos, hunger, violence, unemployment, and on and on—all the things our modern media machines grind out daily…and all the things our governments spend their time and our taxpayer money on. Where is the balance? Where is the hope? Who is actually doing anything to make our world a better place to live…and where are their stories?
Well, here is one:
(email subscribers view on my blog)
I’ve written about Mark Johnson before…he is one of my favorite entrepreneurs…but if you missed it, you can check it out here. This is one person that every aspiring entrepreneur would do well to study.
Please enjoy.
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Time Out!
The news media has inundated us with so much doom, gloom, hate, and anger, that I’m going to take a Time Out! So, this weekend (maybe longer) I am going to stop watching any news, and simply……..
Try it—maybe you’ll like it!
Bob
My Book
Any business crisis can be managed before it becomes fatal . . . Be Your Own Turnaround Manager tells you how. Click here for more information.