obamacare and the 1099 tsunami

Remember the Wicked Witch of the West saying that “we have to pass this bill so we can see what’s in it?” Well, we’re now seeing some of the finer points of obamacare and surprise – it contains some serious boot-to-the-face. (story here)

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.

Huh? Just how does this “reform” healthcare? By putting the IRS farther up your sphincter, I suppose.

Right now, the IRS Form 1099 is used to document income for individual workers other than wages and salaries. Freelancers receive them each year from their clients, and businesses issue them to the independent contractors they hire.

But under the new rules, if a freelance designer buys a new iMac from the Apple Store, they’ll have to send Apple a 1099. A laundromat that buys soap each week from a local distributor will have to send the supplier a 1099 at the end of the year tallying up their purchases.

The bill makes two key changes to how 1099s are used. First, it expands their scope by using them to track payments not only for services but also for tangible goods. Plus, it requires that 1099s be issued not just to individuals, but also to corporations.

Taken together, the two seemingly small changes will require millions of additional forms to be sent out.

It’s easy to see that the authors of this bullshit don’t have a clue about business. Many people who lost their jobs in the economic downturn have started small businesses to survive. This boot-to-the-face will have a huge impact on them. Congress doesn’t care. It’s just looking for more revenue.

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2 Responses to “obamacare and the 1099 tsunami”

  1. “we have to pass this bill so we can see what’s in it?”

    This still boggles my mind. It’s like people who sign paperwork blindly without reading it. Or more like, I guess, the people handing you the forms who get mad when you actually read them. When does the crazy train stop? and what does the station look like? /facepalm

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