This Infuriated Small Business Owner

Scroll Media

I own a small media business through which I perform graphic design, write/print books and perform my voicework. I have wanted to get her off the ground, but my biggest obstacle is my own understanding of the complicated mess of managing money in a manner that allows government complete oversight of how we do business.

And make no mistake, this is not merely paying our taxes, but government oversight, which I both abhor and severely protest on the grandly novel idea that my business neither belongs to the government nor should be subject to its approval.

We have traded our privacy and simplicity (as if running a business and paying our bills couldn’t be complicated enough) for a government-required detailing of how we do business, with whom we do business, why we do business, and then must not only offer up copious amounts of that information but a large portion of the profits that go with it! And for what? So the government doesn’t get gypped out of some tax money?

It rather feels like being forced to tell an alcoholic you don’t like but who invades your privacy all about how much alcohol you drink so he can take a portion of it.

For the money the government takes from me both in a full-time job and my new small business, I don’t think I’m getting my money’s worth in return, not with all their efforts to rip up the internet, send my friends overseas to die in conflicts we have no part in, in funding the death of unborn children in a state across the country — a practice in which I whole-heartedly disagree, funding prisons filled with people we either ought to deport for their crimes or have put down like the dogs they behave as, and any number of other activities I neither approve nor wish to fund, and for what? For PERMISSION to continue supporting myself and following my passion?

Does this jive with anyone?

And don’t you dare pass me that haggard bullshit that “it’s best for everyone.” I’m not decrying taxes, here. I’m talking the subjugation of business in general by a government who wants its fingers in every element of American lives, furthering its attempts to control us on behalf of “our own good.” Our system of taxation hurts small businesses, the very organizations I hear Wal-Mart haters promote time and time again against big business, and yet many of those people also love our progressive income tax, as if it’s the best system possible and we shouldn’t change it.

Did you know that IRS directors for decades have been quoted saying that our current income tax is one of the most backward and damaging tax systems for any industrialized nation? How much growth have we LOST since we instituted it?

Never mind the simple concept that subdividing Americans by how much they make, where they live, where they come from, what skin color they have, how they make their money, who they work for, how long they’ve been in the country IS DISCRIMINATION? Our country was built on the precept that all men are created equal, and yet we’re treating every new Tom, Dick, and Larry who claims he had a hard life be treated differently than someone of a different race and similar background pay differently. We are either all American citizens, or we’re not. When you fill out a government form, it should verify your citizenship to see if you’re eligible for American programs. If you’re a foreigner, you don’t get those programs. And if our immigration process is broken, we fix it, but that doesn’t we mean pay out American tax dollars to people who aren’t Americans! This isn’t about white or black, this is about our preserving ourselves as a nation, even one of immigrants, that when you come here to be American, you become American.

I’m a FairTax fan. That means:

  • QUICK STATS – Currently
    • Only 50% of US residents (citizens/noncitizens) pay taxes
    • Only    5% of US residents pay 50% of the taxes (the very wealthy)
    • IRS boasts 70,000+ pages of tax code that discriminates on age, sex, race, reduces innovation, discourages entrepreneurship and does more to keep the poor in poverty than any other tool we have.
  • SINGLE FEDERAL TAX
    • 23% Sales Tax
    • New goods and services (only)
    • ENDS – income tax, death tax, excise tax, estate tax, property tax, ad valorem tax, etc.
    • Is printed on every receipt, and if it changes, you’ll know INSTANTLY
    • Everyone pays – legal/illegal, honest/dishonest, white/black, rich/poor
    • Doesn’t discriminate on type of business (i.e. doctor/fight club, church/whorehouse)
  • NO taxes on second-hand sales (i.e. If you own a car, house, RV, big yard sale, dog, yourself)
  • EASE OF DOING BUSINESS
    • ENDS – Federal Business Taxation
    • Current Avg Business Tax rate = 22%  
      • YOUR actual taxrate after business taxes are added to the cost of goods? ~45%
      • Important to note here: For those who say businesses should pay their fair share, exactly what do you think a business is? A person? Are they living entities who share in what our taxes pay for? No, they are groups of people working together. You can’t tax the individuals and then tax the group, that’s double taxation for the same damn reason and it’s called stealing.
    • NO subdividing taxes into tiny bits where they can change it at will and people have no idea. The reason business taxes are so high is because the government attempts to tax the transaction of raw materials into processed goods at every single point along its lifespan. That’s crazy.
    • ENDS LOST TIME/MONEY
      • Businesses currently spend 80% of their decision-making time worrying about tax implications
        • Takes away innovation, cost effectiveness and market agility
        • Costs loads of money they pass onto you just to stay in business
      • Businesses spend LOADS of money just trying to figure out taxes on their employees, not even including the actual taxes.
      • IMAGINE what getting 80% of your time back would be like? Imagine just paying your employees their salaries as you contract with them, instead of making the government a third, intrusive partner? Imagine having more money to raise your employee’s salaries and time to allow them to be more innovative?
    • ENDS BLACK MARKET/ BRINGS BUSINESSES HOME / BRINGS FOREIGN INDUSTRY
      • Our businesses are going overseas — not because of people costs nearly as much as taxation, and they are cycling billions of dollars out of grubby US government hands, and for good reason, taxes are too high and regulations too complex to allow a healthy business to flourish, big or small.
      • Ending all business taxation will:
        • End the black market of honest businesses trying to protect shareholders
        • Bring American headquarters home and they money they had with them
        • Bring more foreign industry here, increasing the number of jobs
  • DROP IN COSTS OF LIVING
    • The laws of economic competition will bring prices down. One example includes the Airline Tax that expired while congress was still debating its renewal. At first, all the airlines kept their prices up to take the extra profits, but the little guy began undercutting his competitors, a domino effect that eventually brought all airline prices down to non-taxed levels.
    • Imagine having all the money in your paycheck, an initial 1% increase in products costs, which will eventually drop as competition forces every industry to compete for the consumer with low prices and higher quality products. This isn’t theory folks, this is economic science proven with more than a century of use here in America.

    The Sampsons really loved New Hampshire.
  • OFFERS UNIVERSAL WELFARE
    • The Pre-Bate system is available to every American citizen, in which the government sends every eligible citizen family the estimated cost of taxes on food, clothing and shelter for their area, effectively ending taxation on poor people who are just trying to get by.
    • It doesn’t discriminate, as both rich and poor are eligible for non-taxation on all basic needs.
  • NONPARTICIPATORY FREEDOM – If you don’t participate in the federal economy and take no federal services and grow your own food and make your own tools, you pay no taxes. Now that is freedom.
  • FLAT TAXES DON’T WORK
    • Flat Taxes do not work, and here’s a few reasons why:
      1. Our first taxes were flat taxes, a mere 1% tax on the wealthiest, which the government quickly expanded to engulf everyone and increased it every chance they got
      2. Flat Taxes require the government to know how much you make, which means they still can pull that money out before you get it, which means they control your money before you do.
      3. When the government knows WHO you are, they can then discriminate, giving tax breaks to certain races, genders or ages. That really just brings us right back to where we are right now, with politicians staying in office by promising special interest groups various tax breaks to stay in office.
  • END IRS / SIMPLIFY GOVERNMENT’S SIDE
    • The Tax-collecting agency of the government goes from monitoring 400M Americans to a few million businesses, and then to an astounding simplified monitoring system.
    • $50M/yr industry reduces to almost nothing, most of which can be automated via computer.
  • PEOPLE WHO DON’T PAY TAXES / SUBVERSIVES
    • There is no perfect system. Never will be, but it is better to free the honest people than imprison everyone. People who don’t report taxes now may not report taxes if the FairTax is implemented, but more honest people will go into business for themselves if it’s easier to do. We’ll still increase revenue, simplify taxes, and promote job growth.
  • FINAL CALCULATIONS
    • Current Income Tax = ~15-20%    //   FairTax = 0%
      • You have all your own money from the Federal Government in which to save/invest/spend as you like
      • April 15th GOES AWAY! No more receipt gathering or tax forms every year.
      • You report to no one how much money you make, and therefore are taxed only on what you spend, not earn or save
    • Current Busi. Tax = ~22%   //    FairTax = 23%   (That’s a 1% increase in product cost, initially)
      • Business time/cost to create standard product decreases, costs drop due to competition
      • Business becomes easier to conduct, INCREASING the number of small businesses!
      • Frees people working for others to start their own business
      • Tax is gathered at the register and sent off every quarter, freeing time and money for entrepreneurs and consumers alike
    • Add PreBate – No taxes on Food / Clothing / Shelter
  • SUMMARY SCENARIO
    • Imagine 6 months after the FairTax is implemented for Federal (And State, too, for giggles) you go to work at a normal 9-5 and get your paycheck. After work, you go home and get to work on your new small business you’ve started. You’ve hired four people to help. You paid your annual fees to your city such as licensure, and then you get to work. At the end of the week, you pay them all whatever you agreed to pay them and then you pay yourself. All the money you earn goes straight into your bank account, as does the money you paid to your employees.

      Meet Bill. Drink his Coffee.
    • The end of the quarter is coming up, so you pull out four forms your small business software prepares for you that includes who you are, what you do, where you do it, and how much money you earned in the past quarter. Then it includes the income statements and the automatic 23% that goes to the Federal govt and the 4% to the State. You sign it, seal it and mail it. You just did the taxes for all of your customers who purchased from you and satisfied your duty as a collector.
    • You take your family out to dinner that night with extra money from the extra jobs you had — with no worries about being taxed at different rates for having multiple jobs — and your meal is 30% less than it used to be for you, your wife and two kids. You then go to a movie, and then you pick up a bottle of wine on the way home that 60% cheaper because it’s taxed no more than any other product, and is now much cheaper.
    • Despite this little splurge, you are earning 50% more than you used to with no taxes and a second job that you love and hope to one day run full time. You’re putting more into savings, which helps local lenders help other small businesses which means you have more options to choose from when you seek vendors for your own small business, and everyone is soon an entrepreneur. You don’t need 15 college classes to get started, just four forms and accurate logging of costs.
    • You also give more to your church or other charitable institution. The government doesn’t provide incentives, and it doesn’t need to. You’ve always wanted to help, but your children came first and you were barely caring for them. Now that you have what you earn and can keep it, you start helping the poor, which is easier now since they pay no taxes on the money they get each month to prefund taxes on staples. They money they earn, whether with one or four jobs, isn’t taxes or punished differently because they enter different tax brackets. They have their own money they can use to prepare more easily for college and other improvements. They need us less and less as they can take care of themselves, and those who can’t are more easy to pick out from those who simply want to waste themselves.
    • Freedom from overreaching government oversight into our wallets and pocketbooks. I could live on a farm and not participate in society and be perfectly free, in a land of the free. I don’t support nor ask for police assistance, carry my own gun, make my own ammo, and live in a house my parents built in 1722, never to be taken from me because I don’t pay the rent (taxes).

Okay, so it’s a dream, but dreams can come true, and this isn’t only my dream (not the living alone part, just using that as an illustration). Living free! Making it easier to run your own small business so you don’t have to depend on larger corporations to get by. To earn all I want and pay taxes only on what I spend. Increase my spending power and put a serious check on government’s addiction to increasing the hundreds of thousands of taxes they have, and believe it or not, there are more than 70,000 pages of tax code in the IRS, and that was before the recession. Who knows how much more they have now!

The FairTax is only 300 pages long (SIMPLE!) and goes before the congress every year with more and more supporters. Call your Congressman, tell them to vote for the FairTax.

I’m a small business owner and I want to hire and pay my folks good money for good work, but I’m tired of treating the government like a second boss who doesn’t know my business or passion or my agreement with my employees. It’s time to leave that behind and let people take care of themselves. We’re all perfectly capable of operating as intelligent human beings, and until we have the freedom, the government will continue justifying its interference as if we’re all a bunch of lowly children in need of its guidance.

Take your shtick and shove it.

If you’re interested in learning in greater detail what still remains a rather simple concept, consider looking up the FairTax books available at any major book retailer or online.

Or visit www.FairTax.org.