August 22, 2010

You should look into some of the regulations currently being considered by the FDA and USDA.  These regs are going to increase the price of food considerably, if they are put into place - and they are doing it all under the guise of food safety. 

These regs will also likely put small producers like myself out of business.  I'll still raise chickens for our eggs, but I'll be disallowed from selling the eggs to anyone else unless I take some draconian steps and agree to paperwork for each individual chicken from hatching until death - if a skunk, opossum, raccoon, coyote or hawk kills a chicken, I'd have to report that to the government. 

Ironically, the reason a skunk, opossum, raccoon, coyote or hawk could kill one of SWWBO's chickens is that "they are true free-rangers, they wander around the yard, the pastures and the woods."  That makes the eggs taste especially good, those eggs that you won't be able to buy. 

When doctors speculate about the future of medical practice, they often use the agricultural industry as a comparison.  Farming has been regulated to the point that it's impossible for a small farm to make a profit.  So it will be with medicine- be corporate or be gone. ( Or get big or get out, as the government told the farmers in the '70's)

Fans of fearmongering might want to consider that the current Egg Products Inspection Act allows the HHS Secretary to exempt small producers from regulation.  I see no reason these provisions won't be carried over to any new legislation:

§1044.  Exemption of certain activities

(a) Regulation for exemptions The Secretary may, by regulation and under such conditions and procedures as he may prescribe, exempt from specific provisions of this chapter--... * (3) the sale of eggs by any poultry producer from his own flocks directly to a household consumer exclusively for use by such consumer and members of his household and his nonpaying guests and employees, and the transportation, possession, and use of such eggs in accordance with this paragraph; * (4) the processing of egg products by any poultry producer from eggs of his own flocks' production for sale of such products directly to a household consumer exclusively for use by such consumer and members of his household and his nonpaying guests and employees, and the egg products so processed when handled in accordance with this paragraph; * (5) the sale of eggs by shell egg packers on his own premises directly to household consumers for use by such consumer and members of his household and his nonpaying guests and employees, and the transportation, possession, and use of such eggs in accordance with this paragraph; * (6) for such period of time (not to exceed two years) during the initiation of operations under this chapter as the Secretary determines that it is impracticable to provide inspection, the processing of egg products at any class of plants and the egg products processed at such plants; and * (7) the sale of eggs by any egg producer with an annual egg production from a flock of three thousand or less hens. 

The new health care bill will impose significant burdens on businesses by requiring them to issue a Form 1099 to all vendors from which the business does more than $600 per year in purchases, the Marine Retailers Association of America said in an advisory to its membership. 

To meet this new requirement, which goes into effect in 2012, businesses will have to keep track of all purchases they make by vendor.  For example, if a self-employed individual makes numerous small purchases from an office supply store during a calendar year that total at least $600, the individual must issue a Form 1099 to the vendor and the IRS showing the exact amount of total purchases. 

Who knows what else those Slimy Congress Critters hid in the 'health care' reform bill. 

But on 2nd thought, seems appropriate to add under 'health care' reform anticipating the added stress, high blood pressure and heart attacks which it will generate. 

No shit.  This 1099 bill is going to destroy many small businesses because people will gravitate to the larger providers who will volunteer (for a small increase in the cost of goods) to process the 1099's for you. 

Instead of buying the parts, supplies etc from several handy small and local businesses the business owner, in order to keep their sanity, will purchase from the big box stores instead whenever possible. 

Way to go government!!  Who needs that local hardware/stationary/printing store anyway? 

Certainly, a lot of contamination issues can occur with any type of work force.  However, most of these illegal immigrants have no concept of why it is important to wash after you use the bathroom.  They didn't do it where they came from and they are not concerned about it now.  Combine that fact with the fact that some of these employers could care less about anything or anybody, and whamo.  Illness. 

This 1099 bill is going to destroy many small businesses because people will gravitate to the larger providers who will volunteer (for a small increase in the cost of goods) to process the 1099's for you. 

While I oppose any legislation that requires citizens to tattle on their peers, I'd be quite surprised if this added more than a nominal burden to any small businessman who already (1) keeps track of his accounts payable and/or (2) pays contractors on a 1099. 

Instead of buying the parts, supplies etc from several handy small and local businesses the business owner, in order to keep their sanity, will purchase from the big box stores instead whenever possible. 

I actually have to drive to San Francisco to find a small and local business for which this would be a hardship.  The loyalty card I use at my local Ace Hardware keeps track of my purchases, so I assume getting an end of year total would be trivial for them. 

Way to go government!!  Who needs that local hardware/stationary/printing store anyway? 

Such businesses all closed over a decade ago by me because they couldn't compete on price with the big box stores. 

The reality is that the increasing regulation is of the kind that spirals costs up and has marginal safety benefits. 

That's because we passed the point of diminishing returns long ago.  Our food supply is very safe, has never been safer, and the fear mongering ( not least that done here by "former law student" ) is out of proportion. 

In the 60s we could eat ground beef -- ground in small batches at the local store, not in million pound batches -- right out of the package.  In the 60s we could make real mayo with raw eggs.  The only food safety incident in the 60s was Bon Vivant vichysoisse. 

@fls:"Pogo never points out the flaw of pulling assertions out of, well let's just say "thin air."' 

Thx.  I aim to please. 

"I'd be quite surprised if this added more than a nominal burden to any small businessman who already..."Some morons would be surprised that it will in fact be more than a nominal burden, just like they were surprised that the stimulus didn't work, that global warming is a crock of shit, and that Obama is in over his head. 

P.S. I have an important business opportunity for you that involves an e-mail I got from Nigeria. 

I actually have to drive to San Francisco to find a small and local business for which this would be a hardship.  The loyalty card I use at my local Ace Hardware keeps track of my purchases, so I assume getting an end of year total would be trivial for them. 

Well, poor widdle you. 

I actually have to drive over 150 miles to get to any big box store.  The cost of travel to Home Depot etc, makes it more cost effective to buy parts (for my husband's business) through several local stores and suppliers. 

The rule on 1099's is going to affect businesses.  Not some yahoo like FLS buying paint and some phillips head screws occaisonally at Ace Hardware.  BUSINESSES. 

Hint.....not everyone in the United States lives in urban cesspools.  Try to imagine that not everyone has the same life as you.  I know it is hard, but try. 

We have many small businesses in our local area.  In fact that is ALL we have, for now at least. 

I'd be quite surprised if this added more than a nominal burden to any small businessman who already (1) keeps track of his accounts payable and/or (2) pays contractors on a 1099. 

Have you even READ the legislation?  It requires us to send a 1099 to businesses and individuals FROM whom we purchase more than $600 of stuff in a year.  It doesn't change the 1099 service/labor rule.  Not only do I have to keep track of WHAT we buy for our Schedule C, inventory and supplies: we now have to keep track of WHERE we buy. 

Then we have to go back to all of those suppliers and get THEIR tax ID information, mailing addresses etc and make up a 1099. 

Software programs that we use now, don't have that capability, so we will either have to buy new/upgrade software or do it manually. 

For just my husband's plumbing business and my financial advisor practice that will probably be about 40 to 50 different suppliers. 

In order to reduce the extra paperwork, I will probably purchase more of my supplies from an online source.  My husband doesn't have the luxury of consolidation because each pump, controller, type of timer etc comes from different companies or different suppliers (some of whom are not even IN the United States) and there is NO way to consolidate.  So, we get to try to figure out how to send a 1099 to a company in Britian for a specialty replacement part for a water system. 

I'd be quite surprised if this added more than a nominal burden to any small businessman who already (1) keeps track of his accounts payable and/or (2) pays contractors on a 1099. 

It's easy to look at any one regulation in isolation and say that it's really no big deal.  But we've added so many "nominal" burdens on business over the years that the overall effect has become quite enormous. 

I've got over 500 farmers in our vendor database that we've bought grain from in the last ten years.  Thankfully, not all every year, and many have died or quit farming, or been eaten by their robot farmhands.  It's a good thing January is a slow month. 

DBQ said, re the new 1099 requirements: "Software programs that we use now, don't have that capability, so we will either have to buy new/upgrade software or do it manually. 

I was wondering if Peachtree, which we use to do most accounting, would have an add-on or module for this. 

But I was mostly hoping that they'd take it out.  I've read that they were discussing it.  And FLS, it will be a big deal.  Our little factory might have to employ an additional person to manage the paperwork, at least part time or temp. 

That's all we need right now, is a little more overhead.  Particularly in manufacturing. 

I've also read that this new 1099 requirement is somehow tied to their plans for a VAT tax, which would add taxes to every purchase we make -- in addition to the corporate income tax we pay.  That right there, folks, would be the nail in the coffin for many, hell maybe most, small businesses.  I guess this 1099 requirement somehow lays the groundwork for it. 

Has anyone else read anything about a connection between this 1099 requirement and a looming VAT tax? 

"Some Producers ExemptThe regulation does not apply to producers with fewer than 3,000 laying hens.  These producers account for less than 1 percent of U.S. eggs.  The regulation also does not apply to producers who sell all of their eggs directly to consumers." 

I was wondering if Peachtree, which we use to do most accounting, would have an add-on or module for this. 

I'm hoping that will be the case.  I use Peachtree also. 

Haven't heard about the linkage to the VAT.  Wouldn't be surprised. 

I think it was just another way to try to track and control every aspect of our lives.  Also to try to match up the purchases we deduct on our businesses taxes with actual purchases.  They think they will be able to squeeze a few more shekkles out of us for thier idiotic income redistribution schemes. 

The real issue is that we have these morons in congress, who have never been in business and who don't understand the first thing about economics, making rules for everyone that do nothing but make things worse and worse. 

DBQ, back in 82 Newsweek (of all places) produced an article on just this subj.,  pointing out that the avg.  age of the staffers on the various tax-writing committees in both houses of Congress was collectively 25--and that the ONLY asset most owned was a car.  They owned, on avg.,  no stocks, bonds, annuities or cv life insurance, and rented, rather than owned their own home.  And that their job as a staffer was their first and only job out of college. 

In short, although very bright and graduates, in the main, from some of the nations finest colleges, the very people who determine how the rest of us live our lives have never spent a nano-second in the real world.  They own no assets, have never had to meet a payroll, and know nothing of the psychology of the marketplace or the realities and constraints of the business-world. 

This is a familiar pattern.  Big producer screws up.  Regulations increase across the board, impacting small producers much more than large producers. 

Advantage: large producers. 

I'm pleased to hear that the onerous regulations won't apply to the farmers who grow for farm markets and their own roadside stands.  Seems that someone learned the lesson from the lead-paint fiasco.  But mid-sized producers are still going to get screwed, and that seems wrong to me. 

Has anyone else read anything about a connection between this 1099 requirement and a looming VAT tax? 

No but plenty on VAT. 

The real issue is that we have these morons in congress, who have never been in business and who don't understand the first thing about economics, making rules for everyone that do nothing but make things worse and worse. 

Reason enuff why Slimy Congress Critters need to be turned out after no more than 2 terms, to experience the real world and the effects of their own regulations. 

Full disclosure.  Yep.  That's me :-D ....however, it's an OLDER photo.  Hair shorter and me not as young.  Ah well....time does march on.  Just like I doubt Bagoh20 is still sitting in diapers checking out his future manly parts.  At least we hope not. 

Reason enuff why Slimy Congress Critters need to be turned out after no more than 2 terms, to experience the real world and the effects of their own regulations

Seriously, we need to have some entrance examination for politicians.  Term limits for TOTAL time in political offices.  These dopes get in and never leave. 

The 1099 thingy is really going to screw up Ebay sellers.  If I sell some anonymous person on Ebay over $600 of goods, and it is easy to do if you are selling collectable items, they will need to get MY social security number so they can send me a 1099.  Am I going to give some unknown person online my information?  HELL NO!! 

The regulation does not apply to producers with fewer than 3,000 laying hens.  These producers account for less than 1 percent of U.S. eggs.  The regulation also does not apply to producers who sell all of their eggs directly to consumers." 

(Or get big or get out, as the government told the farmers in the '70's)

That's exactly what happened in CA with the smaller regional tomato growers.  We have family who were in the ag support biz for three generations who also went out of business because the small growers and co-ops couldn't cut the same water deals as the industrial growers. 

Now the bulk of US tomatoes come from Mexico.  So it goes with melons, cukes and peppers. 

As DBQ pointed out, many us use specialty parts or services only available from small businesses. 

Exactly how do I purchase powder coating services from a big box store? 

Hmmmm? 

The last competent powder coater in the East Bay gave it up this year.  Same for the guys who had the best engine tuning dyno in the Bay Area.  We don't just lose economic value or tax base when a small business closes, we're losing decades of experience and skill. 

Soon the only source of many home services will be the big box stores and chain franchises.  As we found out a couple of months ago, it's almost impossible to get a hot water tank replaced same day.  Lowe's put me on hold three times before I could even speak to the order desk.  Fuck that. 

A neighbor knew of a local plumber who charged us $80 more for the tank but he also replaced all the old mismatched piping with copper gratis because he had the parts on truck, the skills and he knew it should be done properly.  So we really didn't pay extra for the tank, we extra paid for a professional job, well done, promptly and with good cheer. 

Plus six hours after the old tank clapped out, we had hot water. 

Guess what?  He's retiring at the end of the year because he can't compete with the big box stores. 

Same with the guy who fixed our ad hoc landscaping system that had been added onto over the years and no one had any clue exactly what was running where below ground.  It took him three hours and $50 in parts.  We had already paid out more than $300 to two "experts"from the big box stores. 

Fortunately we have an excellent local family owned and operated hardware store.  It's an old school hardware store, not self-serve, you go to the counter and they know exactly what you want or need. 

Sure I pay a little more than I would at Ace or Home Depot, but they have three generations of experience behind the desk. 

It's a bit sad that swwbo is apparently ignorant of the ingested ratshit --> infected hen ovary --> eggs with salmonella enteridis sealed inside, because he goes on and on about the dangers of washing eggs. 

Plus what's keeping his "free-range" hens from eating ratshit?  Are they in giant outdoor pens that rats can't climb? 

These puzzles have a simple solution. First principal is that higher food prices reduce the population.  That is pure Malthusian doctrine.  Our abundant petroleum supplies have suddenly been locked away off limits while our necessary oil use has been pushed over onto agriculture feed grains again sharply raising food prices in order to reduce population.  The drastic reduction in medical care resources available under the new Obama Medical Plan will drastically reduce population while abortions at, and soon after, birth will be Government paid sponsored.  Are we supposed to pretend we cannot see what our Government is doing in plain sight. 

Yes, tradguy, central planning and profits in the name of efficiency is the arc which our civilization seems naturally bent upon achieving, but at least give credit to the libs that Plan A includes free and pre-conception birth control options. 

In 2002, the federal Equal Employment Opportunity Commission announced a more than $1.5 million settlement of an employment discrimination lawsuit against DeCoster Farms on behalf of Mexican women who reported they were subjected to sexual harassment, including rape, abuse and retaliation by some supervisory workers at DeCoster's Wright County plants. 

Ah..the dread zucchini abundance.  I toss them down the hill for the deer and turkeys. 

Oh yeah.  The end of the season the jumbo zucchini become deer chum.  The raccoons like it too. 

DeCoster Farms on behalf of Mexican women who reported they were subjected to sexual harassment, including rape, abuse and retaliation by some supervisory workers

This is precisely what is so very wrong about turning a blind eye to illegal immigration, as the liberals are wont to do.  When you are illegal, you are an invisible and completely powerless individual.  It is even more so, when you are a woman in a macho macho world. 

Illegals have no recourse, no one to complain to about being mistreated.  It is just a fact of life.  When you are under the radar, under the table, under the view of the law......you are going to get royally screwed. 

You would think the bleeding heart liberals would realize this and object to allowing (quote) undocumented democrats/illegals.  Unless, what they secretly want is a permanent underclass of serfs who will vote for OBAMA and the Dems. 

So if we have illegals manning the egg farms who have no concept of sanitation and who are being abused......I would rather pay more for my eggs or buy them from Dolores down the road. 

I'd take you seriously, DBQ, if you didn't throw out stupid slurs like "urban cesspools."  I live in a city.  It's not a cesspool.  That doesn't diminish your more rural life in any way.  Why be so needlessly venomous to make a simple point? 

I want to buy eggs, produce, meat and cheese from small local purveyors, and I don't want them overrun with needless regulations.  I have some trust for small farms who have to keep customers, who look their buyers in the eye, who have manageable operations. 

But I don't trust Tyson and IBP and the DeCosters to operate unregulated.  And I know that most people need the affordability that large production provides.  Clearly the FDA isn't doing a good job.  But the job needs to be done?  What's the answer? 

The National Taxpayer Advocate in her 2010 midyear report says "the new reporting burden, particularly as it falls on small business, may turn out to be disporitionate as compared with any resulting improvement in tax compliance." 

The regulation does not apply to producers with fewer than 3,000 laying hens.  These producers account for less than 1 percent of U.S. eggs.  The regulation also does not apply to producers who sell all of their eggs directly to consumers." 

GRRRRRRRRRRRRRR THE REGULATIONS DO NOT APPLY TO SMALL PRODUCERS.  FOR THE 900TH TIME. 

Former Law Student wrote:Such businesses all closed over a decade ago by me because they couldn't compete on price with the big box stores. 

That sounds like a great argument for Walmart. Yet I would think the majority of dems also consider Walmart to be the source of all evil in the world and lament how Walmart has killed the small business.  or are trying to impose onerous regulation on Walmart so that it ceases being Walmart (ie driving up prices by demanding they accept expensive insurance, or asking for unions, or protesting any time a walmart opens in the neighborhood). 

FLS: The ever eager AP uses a unique turn of phrase here: "Mexican women who reported they were subjected to sexual harassment, including rape" Like that "including" which subordinates rape to harassment.  An afterthought actually.  Not sure there were any convictions here which I suspect would have been pointed given AP. 

if you didn't throw out stupid slurs like "urban cesspools."  I live in a city.  It's not a cesspool.  That doesn't diminish your more rural life in any way.  Why be so needlessly venomous to make a simple point

Perhaps I was a bit harsh. 

However, having lived/grew up in the Urban Bay Area and lived directly in San Francisco for some years and still have family in the area......and now living in a rural area have some basis for comparison. 

My point, and one that really really irks me, is that rules and regulations devised by government drones and endorsed by people like FLS are made with the exclusive benefit for urband dwellers.  NEVER is any consideration given to how policy will affect those who live in rural areas and small towns. 

The wonderful benefits of most laws, taxes, assessments etc are NOT benefical to me/us.  In fact most of the rules are harmful.