Pity the poor entrepreneur and small business owner in America now getting socked, with the mother of all taxes, by a government that has become either hostile, or indifferent, to understanding what it takes to build a business, grow a company and hire more workers. I'm not talking about new fees, but about a much greater confiscatory tax, imposed without any real debate or consideration--the confiscation of time.
Nearly every Obama administration initiative demands new, more complicated reporting and compliance filings on small businesses and entrepreneurs that are already overburdened with a mish-mash of reporting requirements that suck away an entrepreneur's time and energy. 2008 compliance costs for a small business, according to a recent SBA Report, was approximately $10,000 per employee. But, the Obama Administration has added new, and far more onerous, reporting demands that are likely to treble those costs to $30,000 per employee. Facing such huge, and hidden, costs of compliance, is there any wonder small businesses are not hiring as they have in the past?
Consider, for example, one of the new reporting requirements contained in Section 9006 of the disastrous Obama healthcare bill which requires all small companies to file 1099s for any purchase over $600, to include anything from office supplies to electricity to independent contractors. As a result, small businesses may need to hire a full-time compliance officer that does nothing but file these new forms and reports.
But that is just the start. For example, Section 1512 of the Recovery Act (ARRA) requires that a report with a minimum of 12 data points be submitted quarterly for each Recovery Act project over $25,000. A separate report has to be submitted if the business worked as a subcontractor on any ARRA project. This report is separate from and in addition to the mandatory, contractual reports submitted monthly to the government contracting officer on each project and, separate from and in addition to, the quarterly program reviews provided for agency leaders. Of course, if the business performs ARRA work at the State level, many of those states have additional reporting requirements for businesses who are working on federally funded stimulus projects within the state.