Author Philip K. Howard’s latest op-ed tells of the “legal quicksand” faced by small business owners, who
face legal challenges at every step. Municipalities requires multiple and often nonsensical forms to do business. Labor laws expose them to legal threats by any disgruntled employee. Mandates to provide costly employment benefits impose high hurdles to hiring new employees. Well-meaning but impossibly complex laws impose requirements to prevent consumer fraud, provide disability access, prevent hiring illegal immigrants, display warnings and notices and prevent scores of other potential evils. The tax code is incomprehensible.
All of this requires legal and other overhead – costing 50% more per employee for small businesses than big businesses.