Obama Administration Imposes Onerous Reporting Rules on American Business
The congresspeople who voted for the recently health-care “reform” legislation admitted to not reading the legislation first. Obama reneged on a promise to make the legislation available online for the American public to read before he signed it. Perhaps these factors explain how a major increase in tax compliance costs for American business was silently slipped into the bill.
In Section 9006 of the bill, and no I am not making that up, all American companies are forced to issue 1099 tax forms to any vendor with which they spend more than $600 in one tax year. This means that almost every independent handyman in America will be issuing a 1099 to Home Depot. This means that every hot dog cart vendor will be issuing 1099’s to the stores where he buys hot dogs and relish. The Cato Institute has referred to this change as “a costly, anti-business nightmare.”
Previously to this bill, 1099’s were used to record payments to independent contract workers, but the slide towards government tyranny is a very slippery slope indeed. We can now conduct almost no business without reporting every detail to our federal overlords. This change will require the issuance and tracking of millions of new documents every year, imposing higher costs on all American businesses — costs which can only be passed on to consumers.
Representative Dan Lungren (R-CA) has introduced H.R.5141 – Small Business Paperwork Mandate Elimination Act in an attempt to modify this law before it goes into effect on 1 January, 2012. The National Federation of Independent Businesses has issued a letter in support of H.R. 5141. Unfortunately, the odds of a Republican measure passing the House and Senate before 2012 are very very small.
And what does this have to do with socialized medicine? What other gems are waiting to be discovered in the 2,409 page “health” bill?