It will result in more taxes because businesses pay small companies and write it off. The small businesses or individuals may or may not report the income.
Its all part of their effort to know where every single dollar for every single person is spent.
This 1099 nonsense will be the END of countless small businesses. For instance, I currently made (needed parts) purchases from 6 varied suppliers, four of them little tiny businesses. If FORCED to go through the 1099 process, I have already informed my SMALL suppliers, who don’t have everything I need, but I still go to, that I will be FORCED to concentrate on the TWO very large companies that have everything I need.
End result, since I, a ONE PERSON business, will have to avoid onerous time wasting paper work, four equally small businesses will be cut from the loop of many others. Goodbye.