The Patient Protection & Affordable Care Act, H.R. 3590, also known as Obama Care, has a provision that requires all purchases from corporations over $600.00 to require a 1099 form to be issued by the purchaser, delivered to the seller, and provided to the government. On the most basic level, that’s three forms for every $600.00 transaction with a corporation. Here’s what Neil deMause, writing at CNN Money, said:
“The massive expansion of requirements for businesses to file 1099 tax forms that was hidden in the 2,409-page health reform bill took many by surprise when it came to light last month. But it’s just one piece of a years-long legislative stealth campaign to create ways for the federal government to track down unreported income. The result: A blizzard of new tax forms that the Internal Revenue Service will begin rolling out next year.
Starting in 2012, that changes. All business payments or purchases that exceed $600 in a calendar year will need to be accompanied by a 1099 filing. That means obtaining the taxpayer ID number of the individual or corporation you’re making the payment to, even if it’s a giant retailer like Staples or Best Buy, at the time of the transaction, or else facing IRS penalties.”
Tom Henschke, president of the Pennsylvania-based SMC Business Councils explains the extent of this new burden upon small businesses: “Just with business travel it would include hotels, rental cars. Phone service: 1099. Computer service: 1099. Whoever does your postage meter: 1099. You do a little advertising, Yellow Pages: 1099. Your landlord: 1099. You might as well just keep them in your pocket and hand them out as you go around every day.”
Boy this is great! Good work congress. Good work Mr. President. Just what the economy needs is more burdensome unprofitable paperwork to stimulate it. Of course the one business that will profit from this is government. It will need to grow and that is how government judges its profitability, it’s success, by its size and growth rate.
But it gets worse. Here’s the Reetzality: I predict this is the first step in installing a value added tax. The Obama governmetn wants to get the folks used to reporting transactions whether they be profitable or not, just report the transaction to the government thank you very much. Don’t worry, right? Apparently, generally accepted accounting principles aren’t sufficiently penetrable by Obama’s government to maximize its taking power. Why would the government care, if it’s only taxing profits? Why would the government care what a company purchases if the company isn’t making a taxable profit? One would think the government would not care. Are they going to advise us on our purchases? I think not. Are they going to regulate our purchases? Probably. In fact this provision does begin to regulate our purchases by cloaking purchases with government forms and bureaucracy.
But here’s the big concern: This Obama government is taking the first step to impose the value added tax. They are getting the folks used to viewing each and every transaction over $600.00 as a potentially taxable event by requiring a tax form, a 1099, to be submitted to the Internal Revenue Service. And then, when the time is right, when our government has imputed what it views as the adequate amount of desperation into our economy, when they have the right quantity of folks on the dole thanks to the government’s attack on our economy, it will suggest, “hey, why not impose a sort of value added tax to help pay for the folks our policies have unemployed? I mean, we’ve already got folks filing 1099’s when they make purchases? Let’s have them throw a little cabbage in the envelope when they send it in.”
Of course, they won’t call it a value added tax. That is too unmarketable a title. Maybe they’ll call it the “Deferred Internal Revenue Enhancer.” DIRE for short. Also of course, don’t bet on the $600.00 threshold holding firm.
This is what I’m predicting. This is what I’m betting on. This is why such a ridiculously burdensome provision is in Obama Care. Folks, get smart on the stealth attack on our country from within, because it’s coming on strong. This is more evidence of this fact.
That’s my Reetzality for the day.
Thanks for the read.
Brett Reetz
