Crippling 1099 Change Slipped into Law
What happens when you pass a 2,409 page health care overhaul bill into law? All kinds of terrible things. No, this is not a post about the merits of the health care “reform” that the Democratic Congress and our President force fed to the American people. Instead, this is a perfect example of why Americans should just tell their elected representatives, “No!” anytime they want to pass legislation into law weighing in around twenty pounds and containing more pages than the Bible.
See, invariably, when that many pages is included in a law, it’s going to do a WHOLE LOT MORE than it is purported to do. It’s going to do things that have absolutely nothing to do with its stated purpose. Case in point, let’s look at one of the non-healthcare aspects of this new law with which we’ve all been sadled:
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.
The full negative impact of this new burdensome regulatory burden on the business community will go into effect in just 18 short months. As a small business owner, I can unequivocally tell you this will be a truly devastating and production draining practice on America’s business community. A compliance demand by our federal government that will only serve to increase overhead expenses for every businesses – from the struggling artist to the multinational behemoth – without adding the least bit of value.
Those of you that own or operate a small business already know how difficult it can be to stay afloat and compete in today’s economy, especially during tough times. Besides the regular day-to-day operations, there are all kinds of fees, taxes and other regulatory burdens that make doing business a challenge.
Can you imagine having to track and tally every single business purchase you make throughout the year and send 1099 forms to all of them? How about having to collect names and taxpayer identification numbers from every vendor or payee that you dealt with? Can you imagine how long it would take on the phone with Wal-Mart customer service to try to obtain the company’s tax ID? Multiply this by the other five hundred companies you do business with, and you start to get an idea of the new burden this is going to place on small businesses across America.
It’s going to take a whole lot more time to comply with these rules, and many small businesses will probably have to hire someone full-time just to take care of it all. The additional expense will either further strain companies who can take the hit (which will just drive up prices for consumers) or force them out of business. But no matter how you look at it, it’s a lose-lose situation for American businesses.
If you’re in business, now would be a good time to let your elected representatives – from county officials to the White House – know that this is a bad regulation for America. It’s also a good wake-up call for every American. The Democratic Congress and our President have encore performances of the healthcare sized legislation in the works. They’re eager to push financial “reform” and climate change bills.
Well, I think its time to pass a new law. Simply stated, if a bill is longer than the Constitution of the United States, it doesn’t even get printed – let alone come up for a vote.