Posted on 09/14/2010 11:10:34 PM PDT by American Dream 246
Tuesday, September 14, 2010 Good News: Democrats Declare a Regulatory Jihad on Small Businesses, Which Will Only Erase or Destroy 340,000 Jobs Annually
You know it's bad when even CNN doesn't mince words.
Senate takes up 'job killing' IRS rule
The Senate will also decide whether to repeal a law enacted as part of health care reform that will require small businesses to file millions of new tax forms -- a provision a top Republican calls "job killing..."
A small section of the massive health care law mandates that beginning in 2012, all companies will have to issue a 1099 tax form not only to contracted workers, as they must already do, but also to any individual or corporation from which they buy more than $600 in goods or services in a year.
The IRS Form 1099 is used to document income for individual workers other than wages and salaries: Freelancers get them and businesses send them out. Under the new law, the 1099 form would be used to track payments for services and tangible goods. Also, it requires that 1099s be issued not just to individuals, but to corporations as well.
The result would be millions of additional tax forms... Chris Wysocki reports that the Democrat-controlled Senate failed twice this afternoon to repeal the disastrous 1099 requirements.
The Barack Obama Death to Small Business Tax Reporting Act of 2010 will stand... Senate Democrats successfully defeated an amendment offered by Senator Mike Johanns (R-Neb) that would have repealed an Obamacare provision which requires all businesses to file Form 1099 with the IRS for every vendor that sells them more than $600 in goods.
President Obama insists the reporting provision is necessary to ensure compliance with our tax laws. Business groups, and anyone with even an ounce of common sense, have pointed out that it is a regulatory nightmare.
Think about a midsized trucking company. The back office would have to collect hundreds of thousands of receipts from every gas station where its drivers filled up and figure out where it spent more than $600 that year. Then it would also need to match those payments to the stations' corporate parents. See, this is what happens when you hire a bunch of academics who've never worked a real job in their lives and put them in charge of our economy. Of course, the economic illiterates in the Democrat Party haven't done the complex calculations to arrive at the number of jobs this provision will cost.
The real costs, in dollars and misery, will be shockingly high.
Earlier today on Fox Business, Gerri Willis stated that the rule "...is a mountain of paperwork and will cost businesses about $17 billion [annually]."
My magic calculator puts the number of jobs erased or destroyed by this madness at 340,000 $50,000-a-year jobs. And that will be but one toll of this monstrous 'health care' bill that no one even bothered to read.
Remember to thank a Democrat on the first Tuesday in November.
Not to worry, when the Congress is in control of the Republicans next year, they will remove this portion at the least. I just dare Obama to veto that...
This will hopefully be the beginning of reparations to both the economy and the Constitution.
This is sick and puzzling on many levels:
1. That this change applies to firms outside the health care industries.
2. It accomplishes nothing in that all deposits to banks are reportable to the IRS so all revenue (excluding cash) is already noticed.
3. Companies always have requested expense reports with receipts, so this should not be an additional burden.
4. That 1099 reporting is on a health care bill?
They nationalized the student loan program in the Obamacare bill—no banks (or white guys) need apply. It was a grab bag of left wing wet-dreams loosely tied together with a health care bow.
No telling what else is lurking in there.
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