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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