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Monday, August 16, 2010

The 1099 "reform" and the continuing war on business 


Among the many new burdens on businesses large and small, this is among the most offensive. Companies that operate with different systems and dispersed accounts payable cannot know whether they exceed the $600 limit by looking inside one system. Mere compliance with this provision is going to cost every business in America a lot of money, all dead weight cost that will further lower rates of return, increase costs of capital, and suppress economic growth. If we had a competent press, it would immediately ask any politician who professes to support "small business" whether he or she will vote to repeal the new 1099 rules. Sadly, we do not.


6 Comments:

By Blogger MTF, at Mon Aug 16, 04:17:00 PM:

Small businesses, like mine, are the particular victim of so many of the Democrat policies that it
s hard to pick only one out of the crowd (like this one), but if one must, I'm glad this gets so much publicity. It's a mindless, expensive, intrusive, ridiculous exercise in stupidity and the easy to imagine follow-ups will be worse. Once all these 1099's start flowing in someone (in their numbers) will be responsible for building a P&L for every filing company in America and our accountants will be endlessly quizzed about any discrepancies that show up between the IRS P&L recap and our tax filings.

Once again, I advise all those interested in starting or owning a business to move to China, or Chile, or pick-a-country...  

By Anonymous Ignoramus, at Mon Aug 16, 04:28:00 PM:

I've suspected that this is to lay the groundwork for a VAT. Anything to this?

A lot of Obama's master plan gets snuck into these massive Death Star pieces of legislation.  

By Anonymous Mr. Ed, at Mon Aug 16, 04:34:00 PM:

Isn't health care reform exciting!

I'd advise all those interesting in starting a business or, say, having a job, to stand up and get behind repeal and replace.

Let's just hit the reset button, admit the health care bill is a loser, and go back to where we were a year ago, with the problems we had, minus the new problems.

In the interim we've learned that there are many improvements to the former system which we could make without having the government run healthcare and taxing every orifice to pay for it.

Of course, the President won't sign it and if the Repubs don't claim the House in November we maybe all should move to Chile. But if they do, much can be done between then and 2012 when we really will have a shot at repealing it.

Demand it.

My two cents.

M.E.  

By Anonymous Ignoramus, at Mon Aug 16, 06:26:00 PM:

Nothing will get better for the Democrats between now and November. Obama just stepped on his dick over the Ground Zero Mosque. Going to the Vineyard for yet another vacation is a bad move. These are unforced errors.

Here's another: Word is that they'll be filing with the SEC for the GM IPO soon -- if Ford has a market cap of $40B, how much is GM worth? Obama's break-even bogey is $70B. I can expand on this, if there's interest here.

As I write, Obama is visiting yet another battery company -- this one in Milwaukee. "We expect our commitment to clean energy to lead to more than 800,000 jobs by 2012 ..." Just like he expects us to double our exports in five years.

Obama's strategy for November is to scare voters about the Republican bogeyman saying that "we shouldn't go backward." But most Americans believe that Obama is already steering us in the wrong direction. Rasmussen is now at 45% strongly disapprove.

With this backdrop, the Republicans will do best to make November all about Obama and not run on any specifics. "Repeal and replace" Healthcare is the exception. Rasmussen says 60% want repeal.

The Republicans have to decide how much to attack Obama personally. Do they just go with "bumbling incompetent Harvard egghead socialist" -- or go further?

I say they should make "Jobs Killer" the theme.  

By Anonymous Duncan Idaho, at Mon Aug 16, 11:09:00 PM:

If "we shouldn't go backward" get to be the mantra, people might want to go back. Hmmm, 4.5% unemployment looks pretty damn good right now.  

By Blogger David, at Tue Aug 17, 10:33:00 AM:

I thought this looked odd when it first came up, but then discovered (was belatedly informed by the MSM) that this was there to generate billions of phantom unpaid taxes to help preserve the deficit neutral pretense of the health bill.

So Dems cannot take it out without some compensating measure (just like the doctor fix that never happended). Evidently business and MD's don't count as constitutents.  

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