WASHINGTON, DC – While President Barack Obama and members of Congress from both parties claim that job creation is a national priority, the federal government is making life more difficult for the nation’s job creation engine – small business. According to CNN, the Internal Revenue Service (IRS) is targeting small businesses that generate a disproportionate amount of revenue paid for by credit cards.
The IRS claims to be using “industry data” to determine who to target. There are just a few problems with this notion. Such data is always historical and doesn’t reflect the rapid technological and demographic changes our economy is going through. The hot dog stand operator of ten years ago never even thought about accepting credit cards. How could he (or she)? Today that same business owner simply pops a small (and amazingly affordable) device like the Square or Intuit’s GoPayment into their smart phone and VOILA – customers can now pay with a credit or debit card!
Twenty years ago, selling your wares via the internet were the province of larger businesses who could afford to invest in the programming and infrastructure to put together an online store. Today, millions of small businesses sell products and services online. They receive their payments via services like PayPal or … credit card.
Let’s not forget the demographic changes we have experienced at an accelerated pace. Today, fewer and fewer consumers carry cash. It is assumed that they can pay for every product and service they will ever need via credit card, debit card, or online debit from their bank accounts. Talk to a college student or a recent graduate – most have never written a check! Cash? Forget it! In case you haven’t noticed, you don’t even need cash to buy a Coke from a vending machine anymore.
Why worry if you’re not cheating on your taxes? If you have to ask, you obviously have never owned a business. Time spent responding to the IRS is time that could be spent building your business. Money spent on CPA’s is money that be spent building your business. That means CREATING JOBS!
Most of us will acknowledge that the IRS has a job to do. However, we should hope that our Federal government would be more judicious in using its power; particularly as it impacts the growth of our fragile national, state, and local economies.