Senate Bill Requires eBay, Amazon, Google, All Credit Card Companies to Report Transactions

FreedomWorks ^ | 6/19/08 | Adam Brandon

[XR7]

Broad, invasive provision touches nearly every aspect of American commerce.

WASHINGTON, DC - Hidden deep in Senator Christopher Dodd's 630-page Senate housing legislation is a sweeping provision that affects the privacy and operation of nearly all of America’s small businesses. The provision, which was added by the bill's managers without debate this week, would require the nation's payment systems to track, aggregate, and report information on nearly every electronic transaction to the federal government.

FreedomWorks Chairman Dick Armey commented: "This is a provision with astonishing reach, and it was slipped into the bill just this week. Not only does it affect nearly every credit card transaction in America, such as Visa, MasterCard, Discover, and American Express, but the bill specifically targets payment systems like eBay's PayPal, Amazon, and Google Checkout that are used by many small online businesses. The privacy implications for America's small businesses are breathtaking."

"Privacy groups like the Center for Democracy and Technology and small business organizations like the NFIB sharply criticized this idea when it first appeared earlier this year. What is the federal government's purpose with this kind of detailed data? How will this database be secured, and who will have access? Many small proprietors use their Social Security number as their tax ID. How will their privacy be protected? What compliance costs will this impose on businesses? Why is Sen. Chris Dodd putting this provision in a housing bailout bill? The bill also includes the creation of a new national fingerprint registry for mortgage brokers.

"At a time when concerns about both identity theft and government spying are paramount, Congress wants to create a new honey pot of private data that includes Social Security numbers. This bill reduces privacy across America's payment processing systems and treats every American small business or eBay power seller like a criminal on parole by requiring an unprecedented level of reporting to the federal government. This outrageous idea is another reason to delay the housing bailout legislation so that Senators and the public at large have time to examine its full implications."

From the Senate Bill Summary:

Payment Card and Third Party Network Information Reporting. The proposal requires information reporting on payment card and third party network transactions. Payment settlement entities, including merchant acquiring banks and third party settlement organizations, or third party payment facilitators acting on their behalf, will be required to report the annual gross amount of reportable transactions to the IRS and to the participating payee. Reportable transactions include any payment card transaction and any third party network transaction. Participating payees include persons who accept a payment card as payment and third party networks who accept payment from a third party settlement organization in settlement of transactions.

A payment card means any card issued pursuant to an agreement or arrangement which provides for standards and mechanisms for settling the transactions. Use of an account number or other indicia associated with a payment card will be treated in the same manner as a payment card. A de minimis exception for transactions of $10,000 or less and 200 transactions or less applies to payments by third party settlement organizations. The proposal applies to returns for calendar years beginning after December 31, 2010. Back-up withholding provisions apply to amounts paid after December 31, 2011. This proposal is estimated to raise $9.802 billion over ten years.

[traviskicks]

..would require the nation's payment systems to track, aggregate, and report information on nearly every electronic transaction to the federal government.

Libertarian ping! To be added or removed freepmail me or post a message here.

[maine-iac7]

As a 15th generation born and raised Mainer (first settled in the Portland area in 1632)

Oh, forgot to add, my ancestors also go back to the early 1600's, up from Mass...of course, Maine was Mass. then - for nearly 200 more years...

Some were killed by Indians and some had some hairy, narrow escapes.

[theBuckwheat]

Time for people to move their financial affairs to a non-US bank, or to some of the digital gold currencies like Pecunix (not e-gold because it is US-based).

[Harrius Magnus]

We need to start all over, Declaration of Independence from the tyrants of the bar, political arena, and press. Better men than us did over some taxes; we have many-fold greater reasons, yet most worry about when Randy, Paula, and Simon are coming back on.

[traviskicks]

or liberty dollars, oh but those folks are in jail, or in court...

http://www.freerepublic.com/focus/f-news/1926795/posts

[combat_boots]

Christopher Dodd HAS to be owned lock, stock and barrel by ______________ (Could it be.....Countrywide? The PRC? The Saudis? The Kuwaitis?)

I take it his credit accounts are mostly numbered and in Swiss Francs.

[thelastvirgil]

This is sheer insanity, and it HAS TO STOP NOW!!!!!

[combat_boots]

Let's say this again, and LOUDLY: This, the noise about nationalizing oil production, return of the faireness doctrine. An Obama Presidency will codify this and he will get 2-3 SC justices to lock it in. America as we know it is in peril.

[Czar]

"The Ruling Political Class have defined themselves as OUR enemies."

And from now on will be treated as such.

[Unicorn]

Vote all incumbents out all of them,lets start over.
I promise to do my part.

[SERE_DOC]

No sh!t, throw them all out

[angkor]

>>>>>”Posterity! You will never know, how much it cost the present Generation, to preserve your Freedom! I hope you will make good use of it,” John Adams wrote<<<<<

Rush Limbaugh’s father wrote an excellent essay about the signers of the Declaration, which Rush at one time provided on his web site.

Limbaugh Sr. did some research on the signers and found that during the Revolution well more than half lost their fortunes, their properties, their families and sometimes their lives and freedoms. Some were hounded throughout the war, some had to stay clear of their previous friends and families, some were captured and sent to jail.

It’s sobering to remember that each and every one of the signers was a capital felon in the eyes of the Brits, and subject to death by hanging.

[Unicorn]

Just try to get all the people you know to vote against them,It’ll work.

[383rr]

Yeah, we knew this was coming when they started to pull the BS on hunting down those that bought tobacco online.

Wonder how everyone will like it now?

[383rr]

Ping to 94.

[GOP_Lady]

Holy Mackrel, Batman! This is what happens when RATs take control. We can't let them have all three branches.

[GOP_Lady]

The Time Has Come to Say, "Stop!"

[GOP_Lady]

Here’s the DNC’s new home page:

http://www.ratfanclub.org/

[XR7]

100?