When the government passed socialized medicine we had to “pass it” according to Nancy Pelosi to find out what is in it and now that we have found out the American people decided it was not what we want. We can only hope the higher court finds the law illegal. Meanwhile Congress is scrambling to change parts of the legislation. We can only hope that they will at least repeal that part about 1099s. It is a small business killer.
The law basically says that you have to send a 1099 to anyone that did more than $600 worth of business. The basic idea is that American’s cheat on their taxes and the government was going to be able to get more taxes. If you own a business you probably buy a lot of goods, from a lot of place – which means you make copies at Staples, save your receipt, because at the end of the year you will need to send them a 1099. Of course Staples will have to process all this paperwork and the business will have to keep, track and report all those expenses.
A small business I talked to estimates it will take 5 people an entire week just to process the paperwork due. This isn’t some big corporation it is a small business. Obviously this isn’t something that is affordable. Small businesses are the backbone of the American economy. Making it harder to do business will not help them turn our economy around. When we are in the great recession burdening the sector that will get us out of it with more baggage just doesn’t make sense.
CNN - Top Dems join GOP to repeal 1099