Being the owner of two successful startups that have been going for four years now, there is one issue that sets my hair on fire on a yearly basis; 1099's. The IRS requires that the forms be typed out using a manual typewriter. I do not personally know of a single person who still owns one. I am told, which I do not know the veracity of said statement, that the IRS checks employer versus employee 1099's by placing them on a light table... REALLY?!?
Why not set up form fillable PDF documents that can be uploaded to the IRS? These could be set up to be read into a database and then the verification set up through said database, automatically.
In my case I wasted a full day on this issue, once again, then had to send the information to my accountant in order to submit the forms, incurring a $90 charge.
If one were to multiply out the man hours wasted, not to mention fees incurred, at the hundreds of thousands of small business's nationwide on a yearly basis due to this requirement, it boggles the mind. This anachronistic and foolhardy practice that the government forces small business to perform on a yearly basis, when after all, they are just trying to do the right thing by hiring other self employed business people and reporting their recompense, is yet another example of how we, as the entrepreneurs who drive this economy, are not in any way catered to by a government stuck in the 20th century.
In a business environment in which every step of my workflow is done digitally, it is high time the IRS joined us in the 21st century!
d'Eric Howse
Los Angeles
3/06/10
6:03 PM
We need tax free saving accounts like the ownership society bush was tring to sell. They have already in Canada, UK, Australia, and Argentina. Argentina started the trend after their economy crash just like ours. We should monitor their progress since they had a head start. This will empower us with the capital to start and grow a business with no credit.
Thomas Sieverding
Platteville, WI
2/16/10
2:02 PM
It's very clear that our economy has reached a point where it cannot sustain itself without the support of venture capital and entrepreneurs to create new industry and innovation. The Build a Stronger American foundation however has overlooked some key elements to meeting this entrepreneurship goal. The focus should really be legislative - the ban on banks supplying venture capital needs to be removed. Here is an outline for an actionable approach to fixing our economy!
-Exempt newly issued stock from the ban on banks buying stock for their own account
-Authorize the Federal Reserve System to set up appropriate systems to enable commercial banks to provide venture capital without endangering bank solvency.
-Encourage liquidation of stock held by banks to comply with Sherman Anti-Trust act
-Find and implement appropriate ways to make it profitable and feasible for investment bankers to raise money for early stage companies. This could be modeled after the existing institutional venture capital industry.
-Find a way to allow investment bankers to raise money in stages like venture capitalists do.
-Find and implement several ways for investors of all incomes to invest in venture capital.
-Enable venture capital mutual funds.
-Create tax incentives for investments in venture capital funds and newly issued stock.
-Create greater tax incentives for early stage investments.
-Create ongoing tax incentives for investment in algae farming businesses and other businesses that will remove pollution from waterways and ecosystems.
-Create tax incentives for investing biodiesel.
-Create tax incentives for investment of neodymium mining. Neodymium is required for hybrid automobiles.
Albertine Flugzeug-Brand
NYC
2/08/10
4:02 PM
@Thompson New York...very interesting remarks. You must be unfamiliar with Socrates who made plain that the state is the only way private property can exist. It alone can employ police forces to protect private property, and run courts to mediate harm, and taxes have to be paid to maintain that protection. Under your scenario, the only people who will keep their property are the ones who can hire their own private police forces. Are you one of those?
So was Callicles, who was instrumental in getting Socrates put to death. He didn't like the idea that this "state" would curtail his personal liberties to be a thug against those physically weaker than him. Although quite possibly not mentally weaker!
Good luck in Thompson's America! Not good for entrepreneurs who want to devote their lives to creating livelihood and chances of wealth for themselves.
That was also part of Socrates' argument. You'll never get people to do their most productive work when they can be robbed blind anytime by a Thug force!
And there are plenty of others who have allowed themselves to be indoctrinated with this idea over the last decades since Goldwater. Goldwater's boys definitely have the private security on their ranches. And jets. And helicopters.
Too bad it won't hold up very long against the tides of history! And very bad for getting people to be self-determinist and creative!
Rick Falls
Ocala Florida
2/01/10
6:02 PM
We are the way out not the government, and change is the only thing that's constant.
Many current industries and government departments alike, need to simply die and fade away, and thereby give light to the kind of innovation and problem solving that makes America Great.
The most pressing thing that I feel that entrepreneurs need first is radically reduced bureaucracy overall, then encouraged, open, and willing connections to like minded people who can serve as both experienced partners ("been there, done that") and to those financially able to help, as they recognize and actually invest, time, experience, and money into trending opportunities and potential future profits, without looking like the typical VC extortion types of lending that are prevalent currently.
Access to innovative micro sized business capital, possibly including government guarantees for that capital would be good, and makes good sense, if the government really wants business expansion from it's purest point of origin.
And lastly we need a simple and flat and "fair tax" structure so that when someone does figure out a way to earn a dollar by filling a need and serving others, they actually earn "a dollar" without fear of how much of that dollar the government will take, or contemplating how that dollar will be treated by a complicated, bloated and confusing tax code that serves few and stresses many.
Back to basics, and the free flow of ideas and capital without all the social engineering "we want this to happen" kind of strings.
Shelley Booth
Asheville, NC
1/26/10
12:01 PM
Entrepreneurs who run small businesses need help in two areas:
1) The punch of payroll taxes. For every full-time employee, we pay in payroll taxes what I could pay a new employee in a part-time training level position. A payroll tax holiday would be a helpful and concrete step state and federal governments could take to assist small businesses in this economic crunch period. Not permanent, but just a brief payroll tax holiday to give the small business owners some breathing room.
2) Hidden credit card fees. Rewards cards and corporate cards hurt small business. For regular transactions, we pay 1.64% of the transaction in fees. But when a customer uses a rewards card, like a miles card, or a corporate card, we pay an outrageous 3.54%. It may not seem like much, but an extra $100-$300 a month in credit card fees matters to a small business. Why do we pay for customers free airline miles? This is an area the federal government has not addressed in the credit reform work.
As Mary Naylor said in the report, “Additional dollars that have to go out the door are crucial for a small business.” These are just two of the specific areas where I see dollars going out our door.
Lloyd Weaver
Harpswell, ME, USA
1/25/10
8:01 PM
Mr. Schramm focused his comments on the individual as the entrepreneurs. Secretary Locke focused on institutions as a source. But likely the "Ford" entrepreneur will not come from an institution. Secretary Locke didn't mention how we are to spur on these entrepreneurs, Mr. Schramm did, and he's on the money. As entrepreneurs we need to be able to show spectacular returns to interest risk takers. Any way the spreadsheet can be enhanced with a spectacular tax break to place more of the income to the bottom line, the more likely is a risky idea to be funded. But as long as people like Mr. Schramm and Secretary Locke work together, we get the multiplier effect of that team, and it takes a team to execute.
As an mechanical and chemical engineer for over 40 years and an inventor nearly all that time, I have never seen a product that can't be improved, even my own (ahem), some very significantly with only a simple change. Considering we are importing some $400 in oil a year (70% of use), obviously there is unlimited opportunities in energy. That's where I'm focused because that will help America get back on its feet in a big way. We have to pay our bills somehow, and it's going to take a lot of "Fords" to do it, and energy can create them.
Communicating the big idea is a problem, however. The web sites that cater to inventions for nominal consumer products are not going to help. A Web site is needed that just caters to several $billion sales ideas because there is no better way for them to get attention if these ideas are by individual entrepreneurs. Again, as Mr. Schramm says, it is individual entrepreneur that will be starting the businesses that matter to job growth. The reason is corporations just fear for their existing order books, entrepreneurs create the order books with the potential for hyper growth.
Being the owner of two successful startups that have been going for four years now, there is one issue that sets my hair on fire on a yearly basis; 1099's. The IRS requires that the forms be typed out using a manual typewriter. I do not personally know of a single person who still owns one. I am told, which I do not know the veracity of said statement, that the IRS checks employer versus employee 1099's by placing them on a light table... REALLY?!?
Why not set up form fillable PDF documents that can be uploaded to the IRS? These could be set up to be read into a database and then the verification set up through said database, automatically.
In my case I wasted a full day on this issue, once again, then had to send the information to my accountant in order to submit the forms, incurring a $90 charge.
If one were to multiply out the man hours wasted, not to mention fees incurred, at the hundreds of thousands of small business's nationwide on a yearly basis due to this requirement, it boggles the mind. This anachronistic and foolhardy practice that the government forces small business to perform on a yearly basis, when after all, they are just trying to do the right thing by hiring other self employed business people and reporting their recompense, is yet another example of how we, as the entrepreneurs who drive this economy, are not in any way catered to by a government stuck in the 20th century.
In a business environment in which every step of my workflow is done digitally, it is high time the IRS joined us in the 21st century!
We need tax free saving accounts like the ownership society bush was tring to sell. They have already in Canada, UK, Australia, and Argentina. Argentina started the trend after their economy crash just like ours. We should monitor their progress since they had a head start. This will empower us with the capital to start and grow a business with no credit.
It's very clear that our economy has reached a point where it cannot sustain itself without the support of venture capital and entrepreneurs to create new industry and innovation. The Build a Stronger American foundation however has overlooked some key elements to meeting this entrepreneurship goal. The focus should really be legislative - the ban on banks supplying venture capital needs to be removed. Here is an outline for an actionable approach to fixing our economy!
-Exempt newly issued stock from the ban on banks buying stock for their own account
-Authorize the Federal Reserve System to set up appropriate systems to enable commercial banks to provide venture capital without endangering bank solvency.
-Encourage liquidation of stock held by banks to comply with Sherman Anti-Trust act
-Find and implement appropriate ways to make it profitable and feasible for investment bankers to raise money for early stage companies. This could be modeled after the existing institutional venture capital industry.
-Find a way to allow investment bankers to raise money in stages like venture capitalists do.
-Find and implement several ways for investors of all incomes to invest in venture capital.
-Enable venture capital mutual funds.
-Create tax incentives for investments in venture capital funds and newly issued stock.
-Create greater tax incentives for early stage investments.
-Create ongoing tax incentives for investment in algae farming businesses and other businesses that will remove pollution from waterways and ecosystems.
-Create tax incentives for investing biodiesel.
-Create tax incentives for investment of neodymium mining. Neodymium is required for hybrid automobiles.
@Thompson New York...very interesting remarks. You must be unfamiliar with Socrates who made plain that the state is the only way private property can exist. It alone can employ police forces to protect private property, and run courts to mediate harm, and taxes have to be paid to maintain that protection. Under your scenario, the only people who will keep their property are the ones who can hire their own private police forces. Are you one of those?
So was Callicles, who was instrumental in getting Socrates put to death. He didn't like the idea that this "state" would curtail his personal liberties to be a thug against those physically weaker than him. Although quite possibly not mentally weaker!
Good luck in Thompson's America! Not good for entrepreneurs who want to devote their lives to creating livelihood and chances of wealth for themselves.
That was also part of Socrates' argument. You'll never get people to do their most productive work when they can be robbed blind anytime by a Thug force!
And there are plenty of others who have allowed themselves to be indoctrinated with this idea over the last decades since Goldwater. Goldwater's boys definitely have the private security on their ranches. And jets. And helicopters.
Too bad it won't hold up very long against the tides of history! And very bad for getting people to be self-determinist and creative!
We are the way out not the government, and change is the only thing that's constant.
Many current industries and government departments alike, need to simply die and fade away, and thereby give light to the kind of innovation and problem solving that makes America Great.
The most pressing thing that I feel that entrepreneurs need first is radically reduced bureaucracy overall, then encouraged, open, and willing connections to like minded people who can serve as both experienced partners ("been there, done that") and to those financially able to help, as they recognize and actually invest, time, experience, and money into trending opportunities and potential future profits, without looking like the typical VC extortion types of lending that are prevalent currently.
Access to innovative micro sized business capital, possibly including government guarantees for that capital would be good, and makes good sense, if the government really wants business expansion from it's purest point of origin.
And lastly we need a simple and flat and "fair tax" structure so that when someone does figure out a way to earn a dollar by filling a need and serving others, they actually earn "a dollar" without fear of how much of that dollar the government will take, or contemplating how that dollar will be treated by a complicated, bloated and confusing tax code that serves few and stresses many.
Back to basics, and the free flow of ideas and capital without all the social engineering "we want this to happen" kind of strings.
Entrepreneurs who run small businesses need help in two areas:
1) The punch of payroll taxes. For every full-time employee, we pay in payroll taxes what I could pay a new employee in a part-time training level position. A payroll tax holiday would be a helpful and concrete step state and federal governments could take to assist small businesses in this economic crunch period. Not permanent, but just a brief payroll tax holiday to give the small business owners some breathing room.
2) Hidden credit card fees. Rewards cards and corporate cards hurt small business. For regular transactions, we pay 1.64% of the transaction in fees. But when a customer uses a rewards card, like a miles card, or a corporate card, we pay an outrageous 3.54%. It may not seem like much, but an extra $100-$300 a month in credit card fees matters to a small business. Why do we pay for customers free airline miles? This is an area the federal government has not addressed in the credit reform work.
As Mary Naylor said in the report, “Additional dollars that have to go out the door are crucial for a small business.” These are just two of the specific areas where I see dollars going out our door.
Mr. Schramm focused his comments on the individual as the entrepreneurs. Secretary Locke focused on institutions as a source. But likely the "Ford" entrepreneur will not come from an institution. Secretary Locke didn't mention how we are to spur on these entrepreneurs, Mr. Schramm did, and he's on the money. As entrepreneurs we need to be able to show spectacular returns to interest risk takers. Any way the spreadsheet can be enhanced with a spectacular tax break to place more of the income to the bottom line, the more likely is a risky idea to be funded. But as long as people like Mr. Schramm and Secretary Locke work together, we get the multiplier effect of that team, and it takes a team to execute.
As an mechanical and chemical engineer for over 40 years and an inventor nearly all that time, I have never seen a product that can't be improved, even my own (ahem), some very significantly with only a simple change. Considering we are importing some $400 in oil a year (70% of use), obviously there is unlimited opportunities in energy. That's where I'm focused because that will help America get back on its feet in a big way. We have to pay our bills somehow, and it's going to take a lot of "Fords" to do it, and energy can create them.
Communicating the big idea is a problem, however. The web sites that cater to inventions for nominal consumer products are not going to help. A Web site is needed that just caters to several $billion sales ideas because there is no better way for them to get attention if these ideas are by individual entrepreneurs. Again, as Mr. Schramm says, it is individual entrepreneur that will be starting the businesses that matter to job growth. The reason is corporations just fear for their existing order books, entrepreneurs create the order books with the potential for hyper growth.
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