Writes Stephen Fairfax:
1:40 pm on August 11, 2010 Email Llewellyn H. Rockwell, Jr.
See this opinion piece in the War Street Journal. I think he probably underestimates the bite the government takes out of his business. Costs to administer 401(k) plans and medical benefits are properly counted as a tax, since the only purpose of such complex vehicles is to enable the employee to possibly defer some savings from taxation. All the administrative costs and time required to comply with the always increasing demands for forms, bonds, permits, etc. really add up. Taxes on telephone bills, internet service, goods used in the ordinary course of business such as paper, electricity, etc. are a non-trivial sum. My own calculation gets a number significantly greater than 50%.
So I’m not hiring right now either. Nor do I see any reason to consider hiring for the foreseeable future. This administration in particular has painted a target on the back of small business owners, and it is getting tiresome.