Buried deep within the new health care law, you will find “Section 9006. EXPANSION OF INFORMATION REPORTING REQUIREMENTS.”
That innocent sounding language, easily lost in the details of the massive bill, represents a major and costly change for America’s small businesses. And it is a job killer. In short, it will require business to issue a 1099 form for any purchase of goods and services over $600 from any single individual or corporation during the year.
CNN gives this example:
“..under the new rules, if a freelance designer buys a new iMac from the Apple Store, they'll have to send Apple a 1099. A laundromat that buys soap each week from a local distributor will have to send the supplier a 1099 at the end of the year tallying up their purchases.”
This may be a boon for the IRS, but I can assure you it will be a nightmare for small businesses all across the nation. Unlike the largest corporations who will have the resources to handle the new requirements, costly as they may be, America’s small businesses will again be saddled with expensive, complex new guidelines that will kill new jobs and stifle innovation.
Congress had a chance to rethink its decision this week as it returned from a month’s long recess. Senator Mike Johanns offered an amendment on Tuesday that would have reversed the new mandate, freeing small businesses from the new reporting requirements.
Yet, by a vote of 52-46, Senators rejected the amendment.
This vote underscores the very worst habits of Washington. First, politicians with little or no real world experience are making decisions that will dramatically impact the ability of small businesses to survive. Second, Washington continues to operate as if it needs more of our money, rather than admitting it has a severe spending addiction.
CNN gives this example:
“..under the new rules, if a freelance designer buys a new iMac from the Apple Store, they'll have to send Apple a 1099. A laundromat that buys soap each week from a local distributor will have to send the supplier a 1099 at the end of the year tallying up their purchases.”
This may be a boon for the IRS, but I can assure you it will be a nightmare for small businesses all across the nation. Unlike the largest corporations who will have the resources to handle the new requirements, costly as they may be, America’s small businesses will again be saddled with expensive, complex new guidelines that will kill new jobs and stifle innovation.
Congress had a chance to rethink its decision this week as it returned from a month’s long recess. Senator Mike Johanns offered an amendment on Tuesday that would have reversed the new mandate, freeing small businesses from the new reporting requirements.
Yet, by a vote of 52-46, Senators rejected the amendment.
This vote underscores the very worst habits of Washington. First, politicians with little or no real world experience are making decisions that will dramatically impact the ability of small businesses to survive. Second, Washington continues to operate as if it needs more of our money, rather than admitting it has a severe spending addiction.
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