Surprise! Health Fascism Law Requires Reporting of $600 Transactions
Buried in the health care takeover legislation is a mandate that businesses report all payments that total $600 or more per year on Form 1099, even for purchases of goods. Currently, this is required only for things like contractor payments, interest and dividends.
The consequences of this mandate are widespread. Sell a Krugerand and you will be reported. Businesses will be choked with filling 1099s for vendors that include paper suppliers, caterers, plant maintenance, rent and utilities; all of whom must provide their taxpayer identification information or have 28% of the payment withheld for taxes. If there is an error in recording the information, the IRS will levy a fine. Individuals who casually provide goods and services as a hobby (not as a business) will be ensnared.
Credit card reporting regime? Is this the financial spying instituted under the "financial reform" bill? The exemption for credit card transactions may be a form of political pay-off to the banks as credit card use will be incentivized. This would also drive up prices since credit card companies charge a fee, usually 5%, for each transaction. The new requirement may also be a predecessor to the VAT.
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