This is only one example of the many ways the people in DC who write the tax code jacked what could have been your job.

I have a dear friend who wanted to start her own business. She is AMAZING with trees (they gave her the Super-Mega-Tree-Knowledge Award at her university…at least that’s what I think it was called.) and all things related to trees. She uses reclaimed Redwood trees to make the most awesomest (it could be a word!!) furniture you ever did see, while keeping the natural beauty of the wood on display. So, she looked into starting a business making this furniture so the rest of us could benefit from having the option to buy it from her. Win/win, right? Well, if she could start her business without being punished financially, sure.

See, she and her husband make a certain wage right now and the Federal Government has decided that people who make what they make should get a distribution of wealth from other people who make more than them and therefore pay income taxes. This is in an effort to reward them for earning more (Earned Income Credit…get it?). So, if she starts this business and earns some money, she loses her EIC, as they are kind of close to the cut off amount. She cannot guarantee that she will earn enough right away to offset her lost EIC. Things are tight already, and this would not be a good thing for them.

Therefore, she takes the route that is in the best interest of her family and does not start this business. Plus, have you seen the regulation hoops one has to jump through to start a business?? But, that’s another post.

If we didn’t have EIC (of which I used to be in favor before I saw the true implications), then she wouldn’t have anything to lose by using her talents and starting the business. In fact, she would be quite motivated to do so. While in this venture, she’d most likely get to the point where she has way more business than she could keep up with on her own. I mean, really, you should see her stuff! Enter…applicants! Maybe you would have been the one to apply for a position at her small business. But, alas, the *helpful* people that live 1,000 miles away from you think they know better how to help people get jobs.

<Clap. Clap. Clap.> Once again, good job, feds. Good job.