Skip to comments.FR-er CPA's help! Is the framework for a VAT in Obamacare?
Posted on 03/31/2010 8:56:04 AM PDT by taildragger
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I think they are only talking about health insurance paid by the employer in excess of $600. I think that the government will eventually start taxing insurance premiums paid by an employer as income for the employee. For example, if your employer pays $10,000 a year for your insurance, that $10,000 will be included as part of your income. It’s the way I see it.
I’m not an expert, but it sounds like you have to detail every expense made with a 1099. That is impossible to comply with and impossible to account for by the gov’t.
This administration is getting ready to drop a VAT tax on us in the fall - right after his commission gives its report, and right before all the defeated Democrat congress-scum leave office after November defeats.
If we don’t mobilize now, it will be forced through - Every potential congressional candidate, R or D, needs to be put on the record before November as to whether they’ll vote for a VAT - even if it is the key recommendation of Obama’s budget commission.
I am a busy CPA as well. If they are going to require 1099’s for all payments to a payee in excess of $ 600, it could be what you say. Presently, 1099’s are required for purchased services, etc if $ 600 or more. I think we need more information. I’m suspicious of a new 1099 requirement coming from this legistlation.
Which was what made the BP go up, The CPA would have to maintain the paper trail or check them for the clients and the small business owner would have to keep them and organize them.
But IMHO this smells of a EURO-VAT since they tack on something along the way something is done or made.
My thoughts during the health care debate was that since employers could just write off the costs and employees were not affected, that meant there was alot of tax free dollars circulating in the economy. You can’t have that if you’re a ‘progressive’.
As far as submitting a 1099 to all who I pay more than $600 to...Well, that could take me all year. Imagine all the 1099’s I’d have to send to all the fuel stops across the country. I’ve spent more than $600 on fuel at alot of places. And we’re operating multiple trucks...for now.
This is the reporting mechanism through which the Feds will tax your health care benefits.
I think you will find that people may start doing work for $600 and do the rest for cash. Remember, this government is wanting to tax the rich. That’s especially anyone making over $250,000. When the rich run out of money, the government will drop it down to $200,000. When those people run out of money, the government will drop it down to $150,000......and so on and so on. Everyone will have their taxes raised until we are totally under their control.
This is how the new “Unearned Income” is calculated. You the employer must keep track of this, the employee now owes tax on this. I’m sure down the road the employer will be responsible for withholding and then down the road again, employer will be required to match certain withholding. Kind of like SS/Medicare.
While I am glad I don’t own my own Small Business, I am saddened that the future prospect of ever starting my own looks dimmer and dimmer as the days go by...
Take Campbells Tomatoe Soup.
The farmer sells the tomatoes to a Campbells and the value of the tomatoes is taxed.
The mining company that Sells the the aluminum ore to Reynolds pays a tax for extracting the ore.
Reynolds smelts the ore and makes aluminum sheets and adds a tax when it sells the aluminum to a can manufacturer.
The cans are made and a tax is added to the can which is sold to Campbells.
A tree is harvested and sold to the lumber mill and a tax is added.
The lumber is made into paper and a tax is added when the paper is sold to the printing factory,
A label is made using ink which was taxed and it is sold to Campbells and a tax is added.
And so it goes on and on. many layers of production and the tax is collected at each step. Now your Campbells soup is sold and a sales tax is added.
Government slurpping at every level!
And can the “1099” become the vehicle from which they get to slurp at the trough? That is the million dollar question I am asking....
1099A Acquisition or Abandonment of Secured Property and Cancellation of Debt.
1099B Proceeds from Broker and Barter Exchange Transactions
Form 1099-C Cancellation of Debt (Info Copy Only)
Form 1099-DIV Dividends and Distributions (Info Copy Only)
and so it goes. A separate tax form will be designed for this form of taxation.
I had a contract job with DalTile who had business in Canada which has a VAT. A quarterly report was submitted with the costs associated which each level of manufacturing of the Taltile products, Roofing tiles, floor tiles, glue, nails etc.
"Reporting of Payments to Corporations and for Goods.
Effective for payments made beginning in 2013, the Reform Act expands the current Form 1099 information reporting requirement for compensation paid for services to individuals and partnerships to payments made to corporations and to payments made for goods as well as services
Do you have the specific statutory language? That is what controls and is, ultimately, what the IRS will use to promulgate any regulations. And no, I still do not think it’s even remotely related to implementing a VAT because the information-reporting arrangements using the various forms 1099 is already comprehensive and has been in place for years.
You buy a can of Tomato soup and it costs $5.
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