From the
Washington Times - by Robert Zubrin - This is the matter of 1099 tyranny. You see, while he was ramming through the health care bill,
Harry Reid hid in its 2,500 pages of gibberish a provision requiring all businesses - big, small and even sole proprietorships - to file a 1099 form reporting every purchase of $600 or more from every vendor - including small purchases adding up to $600 or more. This bill will not bring the
federal government any tax revenue. Rather, by adding to the overhead of companies big and small, it will take away from their bottom line and reduce the taxes they are able to pay accordingly. In my case, I will have to hire a person for $50,000 per year to do nothing but try to obtain and verify the information of such forms. That will cost the
federal government $12,000 in lost taxes. But it gets worse. Because there is no fundamental difference between a sole proprietorship and any private person, there is no reason why this provision, if accepted, should not be applied to every taxpayer. Consider: Do you know how much you spent at your local grocery store last year? Certainly more than $600. But how much exactly? What, you don't know? You will need to know, or under this law, you would commit tax fraud by failing to report accurately the exact amount you spent at every store, hotel, gas station, airline, etc., at which you spent $600 over the course of the year. You would need to get a 1099 from each of them to include in your tax return. If you failed to do so, you could be subject to prosecution.
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ZUBRIN: Tax tyranny is upon us
From the Washington Times - by Robert Zubrin - This is the matter of 1099 tyranny. You see, while he was ramming through the health care bill, Harry Reid hid in its 2,500 pages of gibberish a provision requiring all businesses - big, small and even sole proprietorships - to file a 1099 form reporting every purchase of $600 or more from every vendor - including small purchases adding up to $600 or more. This bill will not bring the federal government any tax revenue. Rather, by adding to the overhead of companies big and small, it will take away from their bottom line and reduce the taxes they are able to pay accordingly. In my case, I will have to hire a person for $50,000 per year to do nothing but try to obtain and verify the information of such forms. That will cost the federal government $12,000 in lost taxes. But it gets worse. Because there is no fundamental difference between a sole proprietorship and any private person, there is no reason why this provision, if accepted, should not be applied to every taxpayer. Consider: Do you know how much you spent at your local grocery store last year? Certainly more than $600. But how much exactly? What, you don't know? You will need to know, or under this law, you would commit tax fraud by failing to report accurately the exact amount you spent at every store, hotel, gas station, airline, etc., at which you spent $600 over the course of the year. You would need to get a 1099 from each of them to include in your tax return. If you failed to do so, you could be subject to prosecution. Read more
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1 comments:
This makes so much sense, why did it take a bored engineer to see it, instead of a news reporter or a hungry politician? Could it be that both the Republicans and the Democrats are asleep at the wheel, in Washington?
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