Friday, March 15, 2013
Why only 10 percent of the workforce is self-employed in the U.S.
Big government likes big providers.
That's why U.S. government is gradually making the small business a relic.
In the not too distant future, most small business owners will be hourly wage earners, likely employed by a chain stores.
Why? Because when small business owners work online or in small offices, it is hard for Washington to regulate what they do.
There are 15.4 million of them, and the government is too remote.
It is far easier for federal agencies to regulate an entrepreneur if he works for big company.
So U.S. government shifts money to favor the delivery of products and services through big company-owned networks, preferably with public companies lobbying Washington
The irony is that in the name of growth and development, U.S. government will almost certainly make the small business more expensive. It turns out that when an entrepreneur become salaried as abig company employee, his overall productivity falls.
The U.S. government imposes costs on entrepreneurs who remain independent—for example, mandating that all business no matter what size to file enormous tax paperwork, federal and state.
The Federal Reserve “printing machine” creates the following situation:
Today, qualifying for a loan for small business is almost impossible.
The self-employment tax rate for self-employment income earned in calendar year 2012 is 13.3% (10.4% for Social Security and 2.9% for Medicare) It should be noted that anytime self-employment tax is mentioned, it only refers to Social Security and Medicare taxes and does not include any other taxes that self-employed individuals may be required to file.
Rubio Introduces Legislation To Expose Costs Of Federal Regulations For Small Businesses
Rubio: “Currently there is no up-to-date assessment by the government showing what its federal regulations are costing small businesses and the American taxpayer. By requiring annual reports, we will have a sense of the cost of all the hurdles small businesses have to jump over and can determine just how excessive current regulations are on business owners.”
Only 10 percent of the workforce, according to the Bureau of Labor Statistics is self-employment in the U.S.
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