Posted on 01/30/2011 12:28:51 PM PST by gimmebackmyconstitution
Health care law's massive, hidden tax change By Neil deMause, contributing writerMay 5, 2010: 11:00 PM ET
NEW YORK (CNNMoney.com) -- An all-but-overlooked provision of the health reform law is threatening to swamp U.S. businesses with a flood of new tax paperwork.
Section 9006 of the health care bill -- just a few lines buried in the 2,409-page document -- mandates that beginning in 2012 all companies will have to issue 1099 tax forms not just to contract workers but to any individual or corporation from which they buy more than $600 in goods or services in a tax year.
(Excerpt) Read more at money.cnn.com ...
The comical thing is that if you ran a small business out of the garage on Saturdays...rebuilding cars...you’d have to mess with this form. Farmers would have to mess with it if they bought fertilizer or new tires for the tractor.
All it does is drive everyone to a hidden economy. We’d actually have worse economic results by the end of this year but be unable to explain why...and everyone would be smiling as they just started doing more under-the-table purchases or repairs.
If not repealed, this calls for massive non-compliance.
Imagine the number of 1099 forms that would be received by Office Max, Staples, Sam’s Club and Costco who cater to small businesses. This will be a paperwork blizzard that even the IRS won’t be able to sort out.
I saw Obama himself on TV before the lame duck session admitting that this is probably a mistake and should be repealed because it is “probably counterproductive”. Of course it was all forgotten in the haggling about extending the tax cuts etc.
How many would be rounded up and imprisoned? Put too many away and then there are no goodies to give away to illegals and welfare scammers.
How about a national shutdown for non-compliance?
Screw that I am not even going to file. It is too complicated.
This is how third world despot countries work. The laws are made so oppressive and complex that compliance forces you out of business. So, to survive, you break the law.
Then the government decides who gets to break the law and stay in business, and who is prosecuted and destroyed. To become part of the “nod and wink approval” class, you have to bribe (make political contributions) to the correct people, and support their causes.
You mean just like the Fair Tax will do! LOL ! I am so sick of the Fair Tax loons, it will do just what the 1099 will do, instead of more compliance and taxes it will do less!
Oh BTW...
I am the 1st poster here to bring up the 1099 mess here on FR, it took all the Conservative Press and blogs 2 weeks before they figured it out...
Many thanks to my CPA friend that saw it 1st, and sent me the AICPA PDF synopsis with the 1099 "gem" in it....
It made her blood pressure go through the moon after she read it and got what it would do to us and her practice...
The way it sounds, whenever I buy a pallot of green coffee, the seller will have to file a 1099. That is stupid and intrusive.
The democrat politicians would have all comrades stopping and saluting them as they stroll by, if they can get away with it.
If one uses a credit card to pay for purchases, one does not have to issue a 1099. So if I use my Office Depot credit card to buy paper, I do not need to give a 1099. If I order paper from someone, they bill me, and I send a check, then I have to give 1099.
Apparently, the credit card companies are providing the 1099s to the businesses so that the cc client does not have to repeat it.
U.S. Rep Dan Lundgren of Ca district 3 introduced a bill repealing this ridiculous rule located in section 9006 of the healthcare bill. At the prsent time, it has been referred to ways & means committee and has 264 co-sponsors. http://www.mygov365.com/legislation/view/id/44120/tab/overview/
i believe it won't be sorted it. BUT regardless, I assure you it will be used against you or anyone else by the IRS/Gov't if you become a target.
General Strike, Hmm. Supreme tactic of the left...co opted by the Liberty Loving Citizens......Can’t you just see Obama pleading for Americans to get back to work?
But we are not like that. We struggle in SPITE of the evil in Washington and around the world...We provide for our families.....
Does the farmer buying the fertilizer file the form, or the seller? I have a small coffee roasting business and I was wondering about my green coffee purchases. It often is about 2,000 for a pallet. Do file, or the seller?
If I have a wholesale customer who buys over the limit, do I then have to file? This is hellacious and thuggery by the leftists. This is the behavior that contributed to our first revolution with the Rum and Tea taxes.
We are getting the general strike in the form of businesses going under and people not working. Sadly, I closed my coffee shop doors, yesterday.
I tried for 2 years, but the area has been hit hard by the recession/depression just before I opened. Oh, well. I am still roasting and selling online and to local businesses. Hopefully, that will pick up.
I am going to 1099 the $hit out of everyone in sight. See how long Kroger's, Chevron, the doctor, the Dentist and all the other people I can think of put up with this sill crap. Anywhere you do cash business so there is no record inflate the sum paid by factors of 30. I will be 1099ing Kroger for $79,000. 1099 your GM car dealer and anyone else that supported 0care. Oh and don't forget to 1099 your employer for the portion of your insurance that is deducted from earnings.
That is as sneaky and snaky as the payroll deduction. Communist Rule #1: Hide how you take from the public and make it “easy”, so they don’t rise up and put a stop to it.
You are missing the point.
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