Maybe Health and Human Services Secretary Kathleen Sebelius drank the “bad” kool aid. The kind only heard about in urban legends—spiked with some high tech LSD. That is the only explanation. Somehow she got her hands on the famed “brown acid” from Woodstock–the bad stuff (if you don’t know what that is click the play button above). The stuff that famous announcement legendary radio disc jockey Wavy Gravy, told the throng at Woodstock to stay away from  because it was a bummer. The only other answer is that she is lying about Obamacare.

Yesterday she went to Nevada to campaign for Harry Reid and displayed the effects of the hallucinogens

The question Ms. Sebelius was asked was “What about the people who say heath care was going to hurt their bottom line?” But the HHS Secretary must have hallucinated a totally different question, because she answered that there were no mandates for small businesses.

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The Small Business owners are correct Obamacare will hurt their bottom line.  For example we know that regulations in the massive government takeover are already driving insurance costs up. According the Chief Actuary of  Medicare we also know that these added costs will likely push Small Businesses to switch health plans, and likely switch to a plan that complies with the mandates on insurance companies, but to save on costs, places tight restrictions on accessing care.

We also know that the new regulation about reporting will force small businesses to fill out IRS Form 1099 every time they purchase more than $600 worth of stuff from a vendor. For example if a small-business owner owns a trucking company, he will have to ask gas stations for their tax ID numbers. If the gas stations don’t cooperate, he will have to withhold money (i.e., send it to the IRS) for gas expenses. Even the National Taxpayer Advocate within the IRS has dissed the 1099 provision

An estimated 40 million taxpayers will be subject to the requirement, including 26 million who run sole proprietorships, according to a report released this week by National Taxpayer Advocate Nina Olson.. Olson’s office, which operates independently within the IRS, flagged the new reporting requirements as one of its priority issues for the next year. Like many who have delved into the details of the new rules, Olson is concerned about their far-reaching scope and potential unintended consequences.

“The new reporting burden, particularly as it falls on small businesses, may turn out to be disproportionate as compared with any resulting improvement in tax compliance,” the Taxpayer Advocate Service wrote in a report released this week.

If a small-business owner and his wife make over $250,000, they’ll pay the new, higher Medicare “payroll” tax of 3.8 percent, starting in 2013. (It’s currently 2.9 percent). But it’s next year, 2014 where things really get bad for small businesses. That’s when the government will require everyone to purchase even more yet-unspecified types of coverage, which will cause premiums to go up even higher. .

For those small business owners who have 50 or more employees (including part-timers) he faces the prospect penalties under ObamaCare’s employer mandate if he does not provide “adequate” coverage to his workers.

The worst part is that these penalties will be triggered by factors that are unpredictable, unobservable, and totally beyond the control of our small-business owner. He could get hit with those penalties simply because a worker’s spouse loses or changes jobs. Or if a worker’s spouse moves out or dies. Or if an employee’s parents move in.

Ms. Sebelius knows all of this, but chooses not to discuss it with those whose bottom line will be hurt the most, the Small Businesses. But I am sure that the HHS Secretary is an Honorable person, so it must be that “Brown Acid” If somebody knows Lindsey Lohan, could you ask her to call the Secretary of Health and Human Services? After all , who else can make a good rehab recommendation? After a stint in rehab, maybe Ms. Sebelius will have the clear mind to tell the truth about Obamacare.