When Good People Do Nothing....

Last week I did something I have never done before. I wrote a letter to the President of the United States. Now, I don't expect to get a response but somehow just the act of doing it made me feel a little better.

What caused me to do this? I am so perturbed by the 1099 reporting requirement that was hidden in the Health Care Law. Not only have I now written to the President, I have also written twice to my state's elected representatives. A couple of them responded. One response was written in typical "legislator non-speak". He's an attorney so I would have been suprised if he stated a clear opinion.

But I will continue to do what I can even if it is just write letters, make blog posts, tweet relevant articles, and tell everyone I know to do the same. I'm proud of what the Tea Party has done to get attention regarding how angry small town America is with what is happening to our country.

I am sharing a copy of the letter I wrote to the President. May it inspire you to take action too. "The only thing necessary for the triumph of evil (or tyranny) is for good people to do nothing". [quote attributed to Edmund Burke, English philospher]


"Dear Mr. President:
I am writing to ask for your support of the complete removal of the 1099 issue from the health care law. As a business broker and former banker, I can tell you this will unduly burden business owners for no benefit.

I know that you believe business owners are "hiding" income and that this will provide a windfall to pay for healthcare. This is Voodoo Math.

Business owners struggle every day just to make it. Many are liquidating their businesses or simply closing the doors and filing bankruptcy.

Please review history. The country did not get out of the doldrums in the past by deficit spending or increasing taxes. We got out because taxes were reduced which encouraged job growth by the private sector. Government is to serve the people - government is not to "create jobs". You are penalizing the very people who you think you are helping.

Overall, I think the health care law is very bad policy. I also didn't like the way it was rushed through without proper study.

You don't know how tough it is to start and operate a business. If the business owners in this country had known what was in the health care bill when it was being rushed through, they would have risen up and said "no way" as we are doing now.

The only way to get the country out of the situation we are in is to 1) cut taxes (so businesses will have the ability to grow and hire) 2) eliminate unnecessary paperwork on businesses and 3) stop using Keynesian economics. It has never worked before. It won't work now.

The politics of your party have me so concerned that I worry about the future of our country. We need you to change course now. Listen to the people that make this country work. Stop listening to politicians and think tank gurus who have never been in business.

And please stop blaming "rich people". They are rich for a reason - they built or produced something of value. They took a big risk to become successful and most don't get rich the first time. I suggest that you read Ayn Rand's "Atlas Shrugged" to get a sense of how outraged business owners are at this time.

Thank you."

The 1099: A Form of Tyranny

So business owners..... you thought doing your tax reporting was baaaaaaad before....well it just got worse. Here's the latest from the geniuses in Washington. Beginning in 2012, you'll have to keep track of EVERY EXPENDITURE OF $600 and more so you can send a 1099 to that person or business. And remember before you can fill out a 1099 form, you must have the tax ID number and correct address. Yikes!

Can you imagine trying to get Costco's tax ID number??! Not to mention Chevron, Wal-Mart, Office Max, and every other Tom, Betty, Fred and Sally that you do business with! I have heard some dumb things...but this one really is the grand champion.

This is going to increase the workload of every small business owner in America...and for what purpose? So the IRS can see if we are being honest? Once again, the Democrats have completely missed the boat and are tripping over dollars to pick up dimes. Yes, there are some folks that have "two sets of books" (one showing their real income and one that gets reported to the IRS). However, having all business owners fill out mountains of 1099 forms is not going to easily answer that question of who is not claiming all their income. All it will do is create mountains of paperwork.

First of all, can you imagine the size of staff that the IRS would need JUST to track all the 1099's on one business?!! Think of the work involved for just one large company..... say Bank of America!

There was a recent article in CNNMoney.com on May 5, 2010 titled "Health Care Law's Massive, Hidden Tax Change". Hidden in the 2,409 page health care bill in Section 9006 there is a MANDATE that says beginning in 2012 ALL companies will have to issue 1099 tax forms to any INVIDIDUAL OR CORPORATION from which they buy more than $600 in goods or services in a tax year.

Currently, 1099 forms are only used to track payments to contract workers. But in with this new law, whether you are a sole proprietor or a corporation, you will have to send a 1099 to every vendor, supplier, or subcontractor from whom you purchase goods or services of $600 or more per year.

So here's my question: why are we allowing this dumb law to be enacted? Folks, we need to rise up and protest to our elected officials. Our country is slowly being turned into what Ayn Rand foresaw in her book "Atlas Shrugged".

In her book, government taxation and control became so overwhelming that the "producers" (i.e. business owners) just stopped producing and moved to the mountains and started their own community. Society collapsed because all that was left were the "looters" (i.e. government officials) and the "moochers" (people that don't produce but live off the earnings of others.

Since Obama was elected we certainly have experienced a lot of "change" but change for its own sake is stupid. And right now, there isn't a lot of "hope" that the Democrats understand that business owners are what make this country run.

The National Federation of Independent Business is leading the charge to fight against this ridiculous health care law that contains the 1099 provision. If you aren't a member of NFIB, then join. And if you are a member, then send in your comments. Call and write your Congressman now. We are the future...one way or the other.

In the interest of full disclosure, I am a member of the NFIB but I wasn't asked to write this article nor did I receive any payment to do it. I'm just irritated as hell.