Health Care Dooms Small Businesses to 1099 Tax Reporting on Everything

Democrat Politicians blaming other Democrats for Spending the Public's money

Democrats have few members owning small businesses unless you count massage parlors, bars and other entertainment services that employ fewer than 50 employees. {Use your imagination]

So when an obscure paragraph popped out of the 2409 page monstrosity called ObamaCare demanding 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. The stealth change radically alters the nature of 1099s and means businesses will have to issue millions of new tax documents each year.

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.

Of course, ObamaCare and Crap & Trade, are about to pile monstrous impositions on the individual's discretionary income as taxes vault through the roof while in Europe, an object lesson is being taught [although not learned in retarded Greece] concerning the old maxim that there's no free lunch. In Greece, the SEIU equivalent union thugs are going on murderous rampages with their demographic heft in the labor force, since one out of every three Greeks employed works for the government. The prize for discovering the obvious goes to a lobbyist/business rep:

"It's a pretty heavy administrative burden," particularly for small businesses without large in-house accounting staffs, says Bill Rys, tax counsel for the National Federation of Independent Businesses. Eliminating the goods exemption could launch an avalanche of paperwork, he says: "If you cater a lunch for other businesses every Wednesday, say, that's a lot of information to keep track of throughout the year."

Of course, Rys and other tax lawyers will have a land office business, along with the hundreds of thousands of IRS bean counters the BIG GUMMINT gets to hire to chase down these tax-dodging small business Tea Party activists. And it looks like the Dept. of Commerce will hire a half-million slackers to help with the 2010 census, which might make Obambi more palatable in the employment department.

In the meantime, the mysterious paragraph seems to have no author, though maybe David Obey was referring to it and other stealth taxes snuck in the huge bill when he said as he retired yesterday that "it seems the public isn't fond of public investments anymore."

For "public investments" refer to the Nast cartoon above and the Tammany Hall Demo-rat crowd of thieves who fingerpoint elsewhere when asked "who stole the public's money?"