Viewpoint August 14, 2009, 1:15PM EST

Why Business Owners Should Plan on the Obvious

Health-care reform, higher taxes, and greater opportunities for government funding are just some of the certainties we can look forward to

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Some things are just obvious.

Seen that new study about how a dog is as smart as a typical 2-year-old? If you're a parent of a 2-year-old, I'm sure that this comes as no surprise. And was anyone surprised that the governor of South Carolina who preached family values and frugal living was caught having an affair with an Argentinean woman on the taxpayer's dime? Anyone want to take a guess where his South American hottie's going to end up once he loses his job and power? Obvious.

Just like some of the things going on in the economy right now. There are obvious trends. These events will affect how people run their businesses. A lot of smart business owners I know have recognized the obvious. And are doing something about it.

For example, there will, without a doubt, be a health-care reform bill. That's obvious. The President's party overwhelmingly controls all three branches of the government. He's going to get his health-care overhaul. It's also obvious that it won't be all that he wants. There are just too many powerful interests who depend on the benefits of our current health care system. Like the insurance companies, pharmaceutical firms, plastic surgeons, Alex Rodriguez, and Andy Dick. So there will be a compromise. And there will be additional costs to individuals and businesses.

Taxes Are Going Up

Most business owners I know have already accepted this. They're talking right now to their health insurance brokers. They're not committing to any long-term plans. They're telling their employees that no one's going to lose their insurance and how much they're valued. They're following the news of this legislation very closely and will be ready to act when things finally shake out.

It's obvious to me that those Somali pirates are eventually going to hijack a cruise ship, the Iranians will ultimately develop a nuclear bomb, and Mad Men will run away with next year's Emmys. Oh, and our taxes are going to go up. That's obvious, too.

The President has already promised to raise tax rates for people making $200,000 or more per year. The deficit is ballooning and even my dog (who's as smart as that pain-in-the-neck 2- year-old down the street) can figure out that more taxes will be needed to pay for this.

Maximizing 2009 Income

So that's why many smart business owners I know are trying to report as much income as possible in 2009. They're speeding up collections and invoicing wherever possible. They're pushing deductions ahead into the next year. Why? Because if they're going to pay taxes on our income, they might as well pay them now, while the rates are lower, then later, when they're inevitably going to go up.

And that goes for estate taxes, too. The President wants to freeze these rates permanently at 2009 levels. But many in Congress feel it's still not paying for itself and look to estate taxes as another potential revenue source. As the government looks for more funding for its programs, estate taxes look like a great way to raise that money at a low political cost, so don't expect those rates to stay where they are.

Smart business owners who have worked many years to grow their personal wealth see this thunderstorm on the horizon, too. These business owners are doing things in the background right now. They're transferring assets to their children and family members. They're talking to their attorneys. They're setting up trusts and making their plans. Right now a 55% tax may be a bargain.

Chasing Down Government Money

Here's another obvious thing: Vladimir Putin is ripped! Have you seen those bare-chested photos of him circulating the Internet? Uspekhov! There's a man that believes in a strong, large government. Just like our President. You can agree or disagree with Mr. Obama's motives. You can complain all you want about more regulation. But it's obvious to anyone running a business that there's never been a better time to do business with the government than right now.