Political Impact on BusinessUncategorized

Congress is Taking a Cut of your Profits

Nancy Pelosi thinks the GOP is causing more unemployment.  Yup she does!  Democrats have the power, they have the votes, they can do as they please and yet she blames job losses on the GOP because she thinks they stalled the vote on unemployement extension.  Okay, first off unemployment goes to the unemployed, and not to the working people, and has nothing to do with jobs unless you believe people are quitting their jobs to get unemployment.  How is this lady so incapable of reasoning simple truth and yet in a position of power?

All of this is very damaging to business owners.  Unemployment has the effect of competing with business owners, especially small business since it creates a way for some employees to quit their job and still cost the previous employer money while they take a break and look for the next serial opportunity to collect unemployment from another employer’s insurance. 

Business owners need more control over payroll, benefits, taxes, hiring and firing, and application of their hard earned cash flow.  The government is slowly taking away the benefits for employees from the employer and at the same time reducing the benefits of being an employer.  The government is truly taking a big cut of the earnings of small business even when they don’t directly call it a tax.  All these rules and regulations and controls are in fact a tax on business!

If you own a small business which is now required to hire a third party accounting firm to audit your books, then that cost is a tax on your business.  It isn’t called a Tax but is, and it comes out of the earnings of the business just like a tax.  Even if you deduct the expense you can’t deduct the whole amount so your cash flow drops just because congress emposes the expense.  These rules and regs are expanding and impacting more and more businesses.  If it continues this reverse trickle-up method of siphoning off profits toward the taxing authority of the US will strip the benefits of being an employer to the point where it will cost Americans their standard of living.  Hello Russian standard of living… in the US.