Dr. Helen Smith : PJTV: "Going Galt": One year later

Tue, 16 Mar 2010 21:02:04 +0000

Your Personal Obama Smackdown: Deprive Big Government of Tax Revenues While Improving Your Own Revenues

One businessman I visit with regularly put it most succinctly:  "If all of the US's 130 million taxpayers would take the normal tax credits and deductions of about $4k they would get in the first year for starting a micro-business, they would instantly deprive the government of $552 billion (over half a trillion!) dollars in tax revenue.  My question is: why isn't everyone who believes in this country starting a tiny business?  With such sudden and huge fall in revenue, the government would either have to openly enslave us or reduce big government to a much more realistic scale!  And the new business owners would have total job security because they can never be fired."

Pajamas Media's Dr. Helen has been discussing 'going Galt' or just 'Galting' for short.  Galting is the idea that you have the option and even the patriotic duty to legally reduce your income and taxes owing to deprive the government of revenues to over-regulate your life.   My friend's company and my own company have become highly successful laboratories for Galting while still continuing to contribute to our improving lifestyles.  Yes, I am saying that you don't want to hurt yourself by reducing your taxable income to the poverty level voluntarily, but there are legal ways you can shield income, benefit from tax deductions and credits, creatively domicile your business or revenue streams, and reduce the taxes you must pay while still improving your lifestyle.  All while being your own boss and getting to make the final decision as to whether you get fired or laid off by your company! 

Our biggest question to each other, of course, was why aren't more people doping this?  We decided it was because there are many myths about small business that must be exploded before potential small entrepreneurs take the leap.  Full disclosure:  I help manage an ecommerce service that has helped over 10,000 online merchants, so I have lots of opportunities to talk to small businesspeople who are highly creative about making their small businesses appear as big businesses.  Including 'going international' in micro-ways that make mega-contributions to their profits, without being a big 'mutinational company'.

Myths Exploded About Starting a Small Business ( for everything below, consult your accountant and and local regulations, but be bold!) Myth: There are too  many regulatory hurdles to starting a business.  Truth: You own a business when you say you do - not when the government agrees to it.  Many businesses are started for $12.00 by simply publishing a fictitious business name in the local paper (or purchasing a local business license for $50) and for the first year or two, run out of the owner's personal checking account.  As long as your business revenues are less than 'in the millions' (even the SBA considers a $19 million business a 'small business') the government bodies at all levels have almost zero interest in you!  This is especially true if you own an online business, which is the most popular type of business to start these days on a micro-budget.  The simple fact is that new small businesses fly almost completely under the government's radar - the sums involved are simply too small to trouble governments that need BIG revenues.   Also, a few simple strategies (discussed below) can take you mostly off the 'local domicile' radar.

Myth: The tax credits and deductions for new businesses are hard to get.  Truth: nothing could be further from the truth!  You have to be honest, and your tax preparer can help you with this, but one thing the Obama administration has not been able to do yet is take away the honest (and by some lights, generous) tax deductions and credits for small business formation.

Sometimes it takes fear to get us to take bold action.  If the fear for your country isn't enough to do the trick, then perhaps the fear of unemployment (or continued unemployment) will get you to take the bold step to start your own micro-business. 

But for my friend and I and for many others we know, starting a business meant actually living the attractive concepts of freedom and liberty; of being the one on the spot to succeed of fail; of getting up every morning with a splendid mission; of rising to the many fun challenges of winning in business. 

And serving our country by being a provider rather than a taker. You can do the same!  Just click.

gdp's Comments

Dr. Helen Smith : PJTV: "Going Galt": One year later