What do 1099's, and the healthcare bill have to do with the price of bananas?
What do 1099's, and the healthcare bill have to do with the price of bananas?
http://online.wsj.com/article/SB10001424052748703636404575353281768628138.html40 million businesses buy food, furniture, office supplies, utilities and fuel (allot of the same stuff you buy). Included in the Healthcare Bill that has already passed, business purchases to any vendor that total more than $600.00 per year will require the business owner to get the vendors W-9 Tax ID number and send the vendor a 1099 form and a copy to the IRS.
Who is a vendor? I have a small home based business, just me and 2 independent contractors that work out of their homes and already get 1099’s. Starting in 2012, if I spend more than $600 throughout the course of the year meeting clients at Panera Bread, or buy a computer from Best Buy, I must get their W-9, Tax ID Number and send Panera Bread and Best Buy a 1099. If the vendor does not give me their Tax ID number, I am required by law to withhold 28% of the purchase and send it to the IRS. If I don't file the forms correctly, the fine is $100.00 per form. The same goes for Verizon Wireless, Bright House Internet Access, Sam’s Club and the hundreds of others I buy things from that are deductible for business expenses including the coffee and cream for the office that was purchased at the local grocery store. You must get a W-9 for every business as franchised businesses have independent owners with their own Tax ID numbers. You will need to constantly update this info as tax id numbers change when businesses are sold or merge. If you sell Tupperware, Mary Kay or are a Realtor and you file a Schedule C on your tax return, this includes all of your purchases to any vendor over $600 annually.
The already financially strugling US Postal Service will receive 40 million of their own 1099’s per year from every business in the USA that buys stamps. The IRS will need to process, match and reconcile 4 Billion 1099 forms, (this assumes only 100 vendors per business times 40 million businesses). The numbers will never match as vendors purchase less than $600 will not be reported. The IRS is asking for an additional $5 billion per year to handle the workload. Accounting fees for preparing a 1099 average around $25, multiply this by 4 billion 1099 forms and the total annual burden for business is $100,000,000,000.00. Small businesses will spend thousands and big businesses will spend millions to prepare, send and receive1099’s to and from every business they do business with. Do you believe that the increased accounting cost won’t be passed on to you the consumer / tax payer?
The irony is that is this is not needed as it has always been illegal for a bank to cash a check payable to a corporation or DBA. The reason these checks can’t be cashed is so the IRS has a paper trail to track your gross sales. Congress is saying that this will bring in $1.7 billion in unreported sales, $300 million of additional tax revenues. By their math, the American consumer must spend $100 billion in accounting fees annually to bring in $300 million in tax revenue. The fact that all corporate and DBA checks must be deposited in a business bank account totally negates their argument. So why are they doing this? Could it be that they are following the European Example and this is one of the major parts of VAT and Transaction tax that will be coming soon?
Other mandates in the Healthcare bill include the modification of every vending machine is the USA so the nutrition data can be seen prior to a purchase (page 457). Every restaurant drive up window and menu board in the USA will need to be modified so you can see the nutrition data prior to ordering (Page 456). Employers with 30+ employees are now required to provide “milking rooms” (Page 459). This must be a separate room (can’t be a restroom or storage room) to anyone that has given birth in the last 12 months so they can express their *** milk. Restaurant owners will take a double hit here, they will have to give up seating to build these rooms if they can’t find a separate room in the back room as well as modify their menu boards. The business owners will pass these additional cost on to consumers. Who is going to enforce these Federal Laws? Where is the money coming from to hire and train these inspectors and enforcement officers?
In the course of my business, I talk to 15 to 20 small business owners each week and most are waiting for the dust to settle on the White House and Congressional agenda before they commit to expanding, hiring, and making capital purchases. No one reads the bills, no one understands the bills, no one is sure how to comply with or enforce the bills. The House Majority Leader recently said “But we have to pass the bill so that you can find out what is in it, away from the fog of the controversy,”
All this uncertainty and not knowing how to comply with all the new government regulations coming out has paralyzed our economic engine.
Soon the cost of Energy and owning a home or building in the USA will skyrocket from the Building Modifications that will be mandated in the energy bill. This bill has already passed the House of Representatives and will probably be approved in the Senate during the “lame duck” session after the November elections. The Energy Bill HR 2454 creates “Retrofit for Energy and Environmental Performance program” (REEP) and the “Energy Labeling Program” (page 149) for all buildings including your home. Within 2 yrs of passing, your home will need to be modified, updated to comply with REEP, inspected and “Energy Labeled” before you can sell it.
I challenge you to not take my word for any of this, READ THE BILLS and verify what I am telling you here, you can search words in the bill.
If you happy about all of this, delete this.
If you have had enough, contact your representative and pass this information along to friends, family members and co-workers.
Contact your congressional representative here.
http://www.contactingthecongress.org/Here is the healthcare bill as passed;
http://democrats.senate.gov/reform/patient-protection-affordable-care-act-as-passed.pdfYou can download the 1428 page Energy Bill that passed in the House of Representatives here
http://energycommerce.house.gov/Press_111/20090701/hr2454_house.pdf“Participation in Capitalism is Voluntary”
“Participation in socialism is never left to individual choice. It is the imposition of group choice.”