I have just read that in early August American workers finished working for the following three things: federal taxes, state and local taxes, and for the cost of regulation. In other words, people work approximately 7.5 months this year to pay for these things, and so only work 4.5 months a year for themselves. I knew that workers cover their federal taxes sometime in April (Tax-Free Day), and the rest of their taxes a month or two later, but I had never thought of how much work goes into paying for regulation.
I have always considered that regulations were largely a business expense – i.e. it costs the business to cover EPA/safety/employment regulations, but I really never considered how that actually flows down to the individual. But of course it does, and so in the end it is the working people of the country that pay for the regulations. It is tax by stealth.
The scariest part of the story was that the author said that because money was drying up (i.e. tightening of the budget outlays at all levels – federal, state, and local) that the politicians will be turning to additional regulation in order to achieve their political and financial goals. In other words, instead of direct taxes, they will be indirectly taxing citizens via regulation and the transfer of cost onto business. The author indicated that politicians will be forcing businesses and individuals to spend money via regulation as opposed to the government collecting it and re-directing it. Laws may be changed to transfer work onto employers/individuals that were previously undertaken by government agencies. In addition, there will of course be new regulations and reporting requirements. It seems politicians believe laws and regulation directed at business do not generate the outpouring of dissent as do tax increases on the general public.
I do not know precisely how this will unfold. It may be things such as 1) mandating that business take responsibility for the upkeep of the roads in front of their businesses, 2) requiring that businesses “self-audit” their taxes, 3) requiring that they employ a certain number of safety or EPA inspectors per 100 employees who then have to send the government reports each month, 4) requiring that they employ doctors or nurses to care for their employees, 5) requiring that businesses deliver their own rubbish to dumpsites, etc. etc. etc.
This scenario seems to me not only to be plausible, but entirely likely, and I have no doubt whatsoever we will see it occur. I have not as yet seen an escalation of regulation/reporting, but it is only a matter of time before it happens.
We desperately need to not only overcome the debt burden that has encompassed the country, but to also overcome the political mindset that all of the costs and regulation are needed. Transferring cost onto business, and thence onto the public, is not a solution to the overspending problem. It is sleight of hand and does nothing to address the real issue of overspending. We must demand politicians stop looking for ways to mask the overspending, and must insist they look to eliminate the spending entirely.
The prospect of increased regulation and business expense feels me with dread. The last thing small business people need is increased regulation. It is enormously difficult to run a successful small business, and each time regulation increases it further adds to the burden. If governments do indeed continue down the regulatory path, it is only a matter of time before starting up and running a small business will become unviable.
The only way to avoid this regulatory strangulation is to get Ron Paul elected in 2012.
thanks loopy……nice lunch… food for thought
The consent of the governed is the lame excuse given for the tyranny perpetrated by the fascist government.
Who in their right mind would consent to having the government regulate their business by telling the business owner what they can make or produce and how much , how to make it , where to sell it, how much to pay for permission to be in business , who to hire, who to fire,how long they can work , how much they must earn , how much tax they must pay for the privilege of being governed and how much tax to collect collect each employee for their privilege of being governed and if you don’t follow the rules to the letter what your penalty will be….just for starts.
I realize everyone can’t go Gault, but the only way to kill this beast is to take away your consent by which which mean cutting you cash contribution that feeds the 800 pound vermin. Simple solution. Take away your money and Leviathan starves.
Government is not a necessary evil , because it’s not necessary at all. Shut it down.
BTW , funny line in Buchanan telling the snot sucking asshole from Omaha to put up or shut up.
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Noel Sheppard’s picture
The liberal media are predictably fawning over billionaire Warren Buffett’s op-ed in the New York Times Monday calling for new taxes on the super-rich.
This led MSNBC’s Pat Buchanan on Monday’s “Morning Joe” to challenge the Oracle of Omaha asking, “Why doesn’t he set an example and send a check for $5 billion to the federal government?” (video follows with transcript and commentary):
PAT BUCHANAN: No, I’m writing a note to Warren Buffett. But look, I’m a little fed up with these people who come on, you know, their big op-eds, all these admonitions. Why doesn’t he set an example and send a check for $5 billion to the federal government? He’s got about $40 billion. You know, you had a plan up there, I talked to Howie Carr at Boston where the super-rich could contribute an extra amount. It was something like one-tenth of one percent did it. You get all this noise from these big rich folks. Let them send checks and set an example instead of writing op-eds.
Indeed.
Of course, the liberals in the media never seem to think about this hypocrisy.
The folks at the Huffington Post were so excited about Buffett’s call they featured it as a headline at their front page:
Yahoo also had it featured prominently on its front page:
Why doesn’t every outlet that likes this idea follow Buchanan’s lead and challenge Buffett to put his money where his mouth is and send the federal government a nice fat check?
Suggested reading:
Read more: http://newsbusters.org/blogs/noel-sheppard/2011/08/15/pat-buchanan-challenges-warren-buffett-set-example-and-send-check-5-b#ixzz1V7178XNp
The first thing to recognize is that there are too many rats in the box. They get fractious when that happens.
The second thing to recognize is that when someone (anyone) gets put in a political place of influence then they have to “do something” to justify their keep – when doing nothing or better yet, doing less is what’s called for.
When llpoh’s picture becomes reality (and it is already there in a lot of California), the small businessman is dead in the water, regulated and taxed (openly or hidden) to death. llpoh is the man that makes this country what it is was – not is. When he throws in the towel, it will be another reflection of the failure of America to hold onto the vision of its’ founders and another step forward to a failed state of Republic intentions and Democratic failure.
@LLPOH: Thanks for the post and thoughts..
MA
LLPOH, not much to add … .
In my country the gov`t anounced tax raises on everything we own starting next year.
Maybe your super-congress will be able to delay the move … .
Peace.
They will start adding fees to services that are providing and paid for by taxes.
Examples:
Fire department makes quarterly inspection. Used to be free, now $60.00 per trip.
Added rain water runoff charges to water bill. What used to $200.00 is now $1,200.00
Want a new sign on your building, get a permit.
Need a new roof, get a permit.
Does your trash dumpster truck drive across a sidewalk, get a dumpster permit.
LLPOH, you have the EPA, I have OSHA. If an employee disregards and breaks a safety rule, the employer, not the employee gets fined. And the fines, they are arising.
Ecclesiastes 1:9
The thing that hath been, it is that which shall be; and that which is done is that which shall be done: and there is no new thing under the sun.
***
Even in 1966:
One, two, three, four…
Hrmm!
One, two, (one, two, three, four!)
Let me tell you how it will be;
There’s one for you, nineteen for me.
‘Cause I’m the taxman,
Yeah, I’m the taxman.
Should five per cent appear too small,
Be thankful I don’t take it all.
‘Cause I’m the taxman,
Yeah, I’m the taxman.
(if you drive a car, car;) – I’ll tax the street;
(if you try to sit, sit;) – I’ll tax your seat;
(if you get too cold, cold;) – I’ll tax the heat;
(if you take a walk, walk;) – I’ll tax your feet.
Taxman!
‘Cause I’m the taxman,
Yeah, I’m the taxman.
Don’t ask me what I want it for, (ah-ah, mister Wilson)
If you don’t want to pay some more. (ah-ah, mister heath)
‘Cause I’m the taxman,
Yeah, I’m the taxman.
Now my advice for those who die, (taxman)
Declare the pennies on your eyes. (taxman)
‘Cause I’m the taxman,
Yeah, I’m the taxman.
And you’re working for no one but me.
Taxman!
Taxes…that’s the reason I’m an ardent follower of Frederic Bastiat !
I know this is nit a great and insightful peace. But that article struck a chord with me as it highlighted the bastards really are clueless. For them, if they cannot directly tax you they will simply find a way to accomplish the same end.
Fwiw – I have OSHA too. And your point is well made – no matter how much you try to prevent any accidentd, and even if you issue written instruction, if the dumbfucks go ahead and drill a hole thru their leg by being stupid – it is still the employers fault. That is why we take a zero tolerance approach on certain safety items. For instance, if you climb on racks without a ladder there is no tomorrow no matter how long you have worked for us. We simply cannot allow certain activities that could result in death – and people will take chances if they can get away with it. I do not need that kind of help.
Thanks for the input everyone.
llpoh
Thanks for the piece. I’m in no rush to start a business in the US but you certainly make some great points on why starting a small business in the US is currently a risky decision. Our economy is heading for disaster and we have a goverment that has a spending addiction. We have too much debt, regulations, and taxes. We need to reduce spending and cut taxes and regulations. We need to encourage capital into this country and we need to encourgage entrepreneurs to start businesses. Basically, we need a limited government that respects the constitution.
llpoh
This is your best short short story ever. Government regulation is strangling everyone in private industry, including the big guys. But the big story, as you indicated, is small business. With the costs being passed to the consumer as a hidden tax. And the strangulation, in my view, is state and local government regulations. Especially local.
Here in Tucson, there are 92 (!!!!) pages of city ordinances governing signs. 92. That’s an onerous small business cost that will, repeat will, be passed to the consumer of that business’ service or product. Plus fire safety inspections, parking regulations, and a host of other rules and regulations which must be complied with. Or your business is toast.
Maybe business can fight back. Have you ever heard of a business telling the government to stuff it………..and winning? Just asking.
SSS –
My company has aircraft in AZ. The stupid regs are so insane, we have to put down plastic sheets when we wash them to “capture” the wash water, lest any go down the sewer. By the way, the sewers have sensors …evidently they alert the sewer Nazis.
SSS – I do not think that an individual business has ever won to my knowledge. But en masse they have.
As an example, I had the local govt up my ass about parking, etc. on my site. It seems they want my employees to park on site rather than – legally – on the street. So they crawled up my every orifice to see what they could do to incentivize me to make my employees use company spaces (parking on the street gives them quicker getaways at the end of the day). They quickly realized that I had built an office in my factory that wasn’t on original plans – although it was of course built to code, and then the shit hit the fan. So perhaps ten thousand dollars later (I had to hire specialist town planners to argue the case, draw up plans, alter layouts, etc.) I have had to make a couple extra parking spaces (offices require more parking, after all), and ask all my employees to park on site (they of course refused (who can blame them)). So I spent $10k for absolutely nothing – nothing at all.
Thanks for the comments. But I really do expect that small business will be slowly killed off by – especially (as you have said) – state and local government regulation.
Jmarz – I truly hope that something is done to make it easier for smart, industry folks like you to enter small business. They are making it so hard that it is almost impossible for folks to learn as they go – a new business fails long before anyone gets a chance to succeed because the pressure is simply too greatand the learning curve too steep. It used to be that basically that as the business grew the owner learned enough about regs and such to keep his growth in step with the regs. Not anymore – the initial burden is so extreme that people just cannot keep up with it.
Hang in there and keep improving your skills. And take the opportunities when they come.
Terry – yes – the sewers around here have sensors. I know one poor prick who had an employee accidently put a quart or so of thinner down the drain. He got screwed pretty severely over it.
There is simply no way to keep up with it all. You never know what you do not know.
llpoh
Thanks for your response. I hope all TBPers read it. 10k expenses for a perfectly legal parking dispute??? This crap has to stop.
Please keep posting your business experiences. It’s very instructive.
SSS – the sad truth is that you get used to it. Government is peopled by incompetent morons. That they are well paid just rubs salt in the wounds.
llpoh
You’ve been doing this mentoring a while. Keep up the good work.
Nice piece.
The nanny state has grown so large over my lifetime. To large. To large to function anymore, yet it is not enough. It will never be able to do all that people want it to do. Fuck, it can barely do the things it is SUPPOSED to do.
Yes, little things will be passed off to businesses. Then bigger things. Then enforcement.
Self regulation will quickly become deregulation, I would think. Especially when self enforcement gets implemented. Though it wouldn’t surprise me to see some sort of “Turn your evil pigman boss in to the government” kind of situation evolve.
That too will die off. When the free shit runs out I don’t think there will be too many people looking to kill their job for a government pension.
This is good food for thought. Another symptom of the collapse.
Punk – thanks for the input. I know that you face similar problems, and I wish that we could all see that things will improve. Vey doubtful that.
have missed your input. Quit chopping so much wood and come out to play more. You and Mrs Punk can always wear an extra sweater in winter!
What happened to the old farm house?
Thanks Novista – I know that this wasn’t an especially provovative piece, but I like to try to keep the small business message out there. We have a lot of small business owners and aspiring small business owners out there, and they, and I, sure can use some consideration from Big Brother before it is too late. As for me, Iam on the downhill slope, but Punk/Jmarz/Colma et al really have their eye on the future and I hope they get a chance to succeed, or not, based on their own skills and talents – which I believe are formidable. Chance always plays a part of course, but I hope that otherwise they get a fair shake.
LLPOH says,
SSS – the sad truth is that you get used to it. Government is peopled by incompetent morons. That they are well paid just rubs salt in the wounds.”
What do you have against people making lots of money?
King – change “making” to “earning” and I have nothing at al against it! t is just that there is too much making and not enough earning going on by our public servants.