Wednesday, July 21, 2010

Government Debt Kills Small Business

The following was written by a small business man in Georgia.

Most of y'all know I own some bars, but my main business is a company I own that leases pool tables, video games, slot machines,etc. to other bars and restaurants all around the state.

I have never really had a beef with the license I have to buy or the fees I have to pay, until today.

Little history:
Every Jan.1st I purchase a license that allows me to lease video games to other businesses. This license costs me $7500 plus $25 for every piece of equipment I have on location. So normally every Jan. I have to pay around $17,500 to the state to acquire a new license.

Well my state is $2.5 billion in the hole this year. So in their wisdom, they decided they could make up the shortfall by raising the license cost and fees associated with coin op arcade games and pool tables AND by CANCELLING ALL CURRENT LICENSES EFFECTIVE JULY 1, and making you re-apply and pay a higher rate, A MUCH HIGHER RATE.(Nevermind that I have already paid for a license to run from Jan.1 2010- Dec 31 2010)

In order to stay in business, I have to come up with almost $60,000 in 3 weeks. The license increased to $10,000 and $125 per piece of equipment. Every license holder in the state has until 8.15.10 to pay it or go out of business.(also, the location now has to apply for a location license and pay $125 per piece of equipment they have in their establishment).So basically, the license fee went from $25 per machine, to $250 per machine. And it takes a LONG TIME to make $250 on a Golden Tee, etc.

And it doesn't just hurt my company, it hurts the consumer...because all locations where my profit is marginal, I will be pulling equipment, leaving that bar or restaurant with no entertainment....and noone else will be coming in to bring them more games, because if it was not profitable for me to keep my equipment there, it is not profitable for anyone else. So those small bars and restaurants will have to close also. Pool tables and arcade games do not make a lot of money, and once you factor in that the first $250 it makes has to go to the state, then you realize this business just got put out of business by the state.

Liberals wonder why deficit hawks like myself are so worried about government debt. It's because when the government runs out of money, I know where they go to look for more: your ass.

So if your ass is barely scraping by, and the government runs out of money, the government will take your ass to the cleaners. This is not theoretical or sensationalized, this is simple fact.

So enjoy your ObamaCare and your unemployment checks while they last, but remember where the government will knock when the bill comes due.

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