Passing the health care bill was an Obama and Congressional "emergency." Well the devil’s in the details. Here’s an example of why Democrats didn’t want any transparency on this bill.
Beginning in 2012 businesses will be required to report all payments in excess of $600 for services or merchandise to the Internal Revenue Service on a Form 1099. That means businesses will have to send a 1099 to other businesses for virtually all purchases.
This onerous regulation will be expensive while adding absolutely no value for the cost incurred to comply. So much for driving costs out to improve competitive positions.
The Washington bureaucrats will probably spin this as a ‘job stimulus’ initiative because it might force companies to add a job to process this paper. But it will cost American consumers in higher prices. That is until a foreign company not subject to this nonsense takes all the work and eliminates the need for any U.S. jobs.
Kentucky's political leadership saw no need to protect the commonwealth's businesses from this type of onerous federal mandate. Too bad. This stinks. This hurts.
Beginning in 2012 businesses will be required to report all payments in excess of $600 for services or merchandise to the Internal Revenue Service on a Form 1099. That means businesses will have to send a 1099 to other businesses for virtually all purchases.
This onerous regulation will be expensive while adding absolutely no value for the cost incurred to comply. So much for driving costs out to improve competitive positions.
The Washington bureaucrats will probably spin this as a ‘job stimulus’ initiative because it might force companies to add a job to process this paper. But it will cost American consumers in higher prices. That is until a foreign company not subject to this nonsense takes all the work and eliminates the need for any U.S. jobs.
Kentucky's political leadership saw no need to protect the commonwealth's businesses from this type of onerous federal mandate. Too bad. This stinks. This hurts.
3 comments:
This is not an onerous or burdensome requirement. This can be set up on an Excel spread sheet using about 5 columns. This information can then be transmitted to the IRS as often as the IRS specifics as it now does for Social Security payments.
This fear-mongering nonsense came from that feudalist organization known as the Cato Institute.
Bluegrass Policy Institute repeated this fear-mongering message.
The purpose of this regulation is to ensure that the recipient company reports this as income on their tax return. There are already too many loopholes in the tax laws that businesses slide through. This requirement simply prevents another loophole from being opened.
Hempy is right. This can be set up easily on a spreadsheet.
One little question. Who does all the work to gather the tax IDs for each organization that has to receive a 1099? This will take initiative to ask for it and follow up until received. Probably a piece of cake for government folks or anyone that doesn't have to do it.
What's a little more paper, filing, accounting, tax work anyway? It's only overhead dollars.
What if, just what if, the feudalist organization's estimates are right?
There wasn't any transparency on this mandate before the bill was passed. Haven't seen any estimates from the government now that it is passed. There might be a reason for that!
I'm not sure it's the single task that bothers me. In and of itself that isn't onerous or burdensome but when you factor in all the other small, simple tasks that are piling up for businesses to do it certainly begins to inhibit the activities of a business.
We don't need to pile on any more requirements for the folks that provide jobs in this country.
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