Mr. Borini's "small business consumed income tax" would indeed be a most welcome improvement. As founder of a new "microbusiness" (i.e., one in which the officers take turns sweeping the factory floor), I am irked by the time and money that I must waste in reading fine print and satisfying federal and state regulations. The following additional changes could also have a beneficial effect:
If there has to be an employment compensation fund, its cost should be paid out of personal income taxes. The business employer, as the only person to create employment at no cost to the taxpayer, should be the one person who does not have to pay for unemployment. He is already doing his bit to solve the unemployment problem.
Workers' compensation insurance should be taken out of the hands of the state, whose only role should be to specify minimum limits of compensation, as in the case of third-party automobile insurance. Employers should be free to shop around for the best insurance policy. The present system makes seemingly arbitrary classifications of risk, and wastes taxpayers' money to administer what would better be left to private insurance companies.
In the present embryonic stage of our high-technology instrument-making venture, I would far rather have government help through the elimination of regulations than through the provision of financial aid.