Time to say, ENOUGH!

For me, it began last November in a pre-tax meeting with our CPA. He mentioned there was a good chance that business development cost would have to be amortized beginning with the 2022 tax year rather than fully credited for tax purposes. This change has a negative effect on startups as development cost is (for us) the largest single controllable expense.

The warning was solidified in a Wall Street Journal article on January 3rd, “Unhappy New Tax Year for US Business”. As it turns out, we are only allowed a 10% deduction of our company development cost this year resulting in over $45,000 excess tax and more than 63% of our company profit going directly to the IRS, maddening! 

These are profits better used in hiring or additional research and development. Government overreach here is stealing funds and stifling innovation. 

Political action is not my thing. However, this abuse requires a loud voice. Letters have gone out to our congressman and senator as well as the NFIB (lobbying arm for small business).

Decades ago, I had the privilege to meet and visit with the founder and Chairman Bill Marriott, Sr. during my 20+ years with Marriott Corporation. His biography tells the story after he opened his first venture in Washington D.C. in 1929, an A&W Root Beer stand. The story was of a government regulation strangling his company. Health regulations required excessive washing temperatures causing heavy breakage of the restaurant glassware. He presented his case to regulation authorities and the regs were changed. Thus, the importance of pushing back for business success, became apparent when I became a business owner.  

Small business owners have a significant voice with political leaders. It is only effective, however, if we choose to use it. The door is open if you want to join with me in this fight (jim@edocservice.com). Or, at the very least, write to your congressman. Also, consider becoming one of the 300,000+ members of the NFIB.