Tuesday, September 14, 2010

That Was Quick: Dems Vote To Crush Small Businesses Under 1099 Forms

Yesterday I reported on a new ObamaCare regulation requiring businesses, charities, and local and state governments to keep track of where they purchase everything and, if they spend more than $600 at a given business in a single year, to send that business a 1099 tax form and also one to the IRS.

Today the Dems defeated an amendment proposed by Republican Senator Mike Johanns of Nebraska that would have repealed that law.

The madness of this regulatory nightmare was illustrated today by Chris Wysocki at Wyblog, who wrote:
Think about a midsized trucking company. The back office would have to collect hundreds of thousands of receipts from every gas station where its drivers filled up and figure out where it spent more than $600 that year. Then it would also need to match those payments to the stations' corporate parents.

See, this is what happens when you hire a bunch of academics who've never worked a real job in their lives and put them in charge of our economy. They say they're out to help small business, but the reality is quite different.
Surprise, Oh Obama-Lovin' Academics! Besides helping to kill the jobs of many of your students' parents (who might otherwise have paid tuition and made contributions to your schools), you will be directly affected by the 1099 requirement, which also applies to non-profits. Your institution will have to shuffle through literally tons more paperwork.

That should have an interesting effect on your educational institution's eagerness to send you to your next receipt-laden, expense-paid symposium, eh?

In fact, the reduced revenues and additional costs should have an interesting effect on your employer's eagerness to keep you on the payroll.
 Related: Just ♥ Paperwork? Obama's Got A Brand New Law For You!


  1. My question is, how will they enforce this new requirement?

  2. My guess: if a business doesn't use credit cards to pay for all purchases, it's an invitation for an audit. This regulation is a boon for the credit card industry, just like Obama's $30 billion "small business" bill is a boon for lenders.