The Virginian-Pilot
                            THE VIRGINIAN-PILOT  
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Monday, October 16, 1995               TAG: 9510140214
SECTION: BUSINESS WEEKLY          PAGE: 04   EDITION: FINAL 
TYPE: Opinion 
SOURCE: BY JOE SANSONE 
                                             LENGTH: Short :   47 lines

OBEYING THE LAW COSTS MONEY

Hundreds of people in Hampton Roads currently operate unlicensed, uninsured businesses. You really anger me.

You pocket most of the money that you make, and are able to offer a much cheaper service only because you are operating illegally.

To make the matter worse, many of you have full-time jobs with the government or private firms that offer you and your families health insurance and retirement programs.

This unfair competition with legal small businesses is a major reason why many companies like mine are struggling to afford pensions and health care premiums.

Additionally, others who are illegally operating are receiving benefits in the form of SSI or welfare payments at my expense, then undermining my ability to make ends meet.

You have no greater right to the benefits of financial and health security than do I, and at least I am not a cheat.

For those of you not aware of this fact, I own a small lawn maintenance business.

In one month, the cost to operate my business is approximately 80 to 85 percent of gross income. This includes about 20 to 25 percent in taxes and fees alone.

As a legal business, a partnership, we pay the following: federal, state and city taxes, matching Social Security, worker's compensation, personal property taxes on vehicles and equipment, unemployment tax, and liability insurance.

The remaining income ideally covers labor and operating costs; however, more often than not, it does not.

Those of you operating illegally can afford to charge much less per lawn because you choose to cheat the system.

You cheat the government and all legal small businesses. And you should not be allowed to continue. MEMO: Joe Sansone operates Specialty Landscaping Service of Virginia Beach.

by CNB