Disasterous New Government Reporting Requirement
I have blogged before about the absolute disaster that is the requirement (included in the health care bill) for businesses to submit 1099's for all goods and services purchases over $600. We have hundreds of vendors who meet this criteria, and the process of filling out forms, collection tax ID's, etc. is insanely onerous. Megan McArdle has more today.
Henry Bowman:
Almost any business, large or small, is adversely impacted by this. Smaller businesses are hurt worse that large ones, as it increases overhead more (proportionately). And, one of the types of businesses that will be hurt the most are coin dealers: inasmuch as a single ounce of gold is worth well more than $600, coin dealers will pretty much have to generate 1099s for nearly every customer!
July 27, 2010, 6:34 amsch:
I had the impression it was business to business, so retail sales are not included. Coin dealers that are mostly wholesale would
July 27, 2010, 8:02 amhave a problem. The escape clause of credit card exemption suggests that ultimately all transactions will be tracked in some way
or another, just as all telephone calls are now. All credit card transactions are reportable in a year or two by the processor.
Can you get a credit card with your EIN, and not your SS#?
On another matter of unintended consequences, I think the female and other minority hiring requirements embedded in the financial
reform package may be even more devastating in the long run, if the impact on the minor activity of college sports is any barometer.
Mesa Econoguy:
Just you wait & see what this new financial consumer protection agency (still sounds like a mob racket) has in store for everyone.
[More to follow here - and you will get a taste for how disconnected from reality bureaucrats really are, and you will be easily convinced that those jobs were filled by adverse selection. It's a preview to Obamalinicare.]
July 27, 2010, 4:25 pmforest:
I can't wait to issue 1099s to Staples, the Turnpike Authority, the Post Office, Fed Ex, the local gas station, Dell Computer, McDonalds, my accountant, my insurance company, the corner bar ...
July 27, 2010, 4:53 pmfrankania:
Just wait. You will see some creative businesses soon. Those who do services for $590 and then delegate any further business to the son's business, then the wifes's then the neighbor's etc. Also, companies who hire people to work 29 hours for the husband's, and then 11 more for the wife's etc.
July 27, 2010, 7:22 pmOver-regulation always causes complicated solutions.