Our nightmare of the future is starting to look less like Red Dawn (1984), and more like Brazil (1985).
Terry Gilliam’s Brazil told of a retro-future world where a malevolent government information octopus will worm its way into every nook and cranny of people’s lives, suffocating freedom.
Then again, maybe it’s starting to look more like 1984.
This, from a post by Chris Edwards at Cato@Liberty…
Costly IRS Mandate Slipped into Health Bill
A few wording changes to the tax code’s section 6041 regarding 1099 reporting were slipped into the 2000-page health legislation. The changes will force millions of businesses to issue hundreds of millions, perhaps billions, of additional IRS Form 1099s every year. It appears to be a costly, anti-business nightmare. …
Basically, businesses will have to issue 1099s whenever they do more than $600 of business with another entity in a year. For the $14 trillion U.S. economy, that’s a hell of a lot of 1099s. When a business buys a $1,000 used car, it will have to gather information on the seller and mail 1099s to the seller and the IRS. When a small shop owner pays her rent, she will have to send a 1099 to the landlord and IRS. Recipients of the vast flood of these forms will have to match them with existing accounting records. There will be huge numbers of errors and mismatches, which will probably generate many costly battles with the IRS.
This is another one of those burdens that fall disproportionately on small business. Large business do most of their business with other corporations anyway, and probably report a lot of unnecessary 1099s just to be safe. Since corporations typically transact with each other via traceable transactions anyway, the information is largely redundant.
But the small businessman or woman must is now on the hook for determining the tax ID number of virtually everyone with whom they transact business, in the time frame between January 1 and January 31 every year.
Of course, a lot of crap flew under the radar in the Health Care Bill. One of the few groups that did manage to get its concerns on the record was the Air Conditioner Contractors of America:
The House bill would extend the Form 1099 filing requirement to ALL vendors (including corporate) to which they pay more than $600 annually for services or property. Consider all the payments a small business makes in the course of business, paying for things such as computers, software, office supplies, and fuel to services, including janitorial services, coffee services, and package delivery services.
In order to file all these 1099s, you’ll need to collect the necessary information from all your service providers. In order to comply with the law, you would have to get a Taxpayer Information Number or TIN from the business. If the vendor does not supply you with a TIN, you are obligated to withhold on your payments. [emphasis added]
So this is one of the provisions that had Nancy Pelosi anxious to pass the bill so that we could find out what was in it. Yippee.
H/T dennism (my CPA).
Cross-posted at VladEnBlog.
Steve Maley
KnightsofMalta
1984 or Animal Farm?
macjedi Wednesday, April 28th at 11:51PM EST (link)Don’t forget that, in Animal Farm, the archetypical Napoleon altered the seventh commandment to be: “All animals are equal, but some animals are more equal than others.”
Since our current Napoleon and the progressive horde are determined that equality amongst the masses must be enforced as “equal reward”, they have quite another plan for their own “more equal rewards.”
The march to the progressive utopia began long ago with the corruption of the educational system, but now begins the marathon through ‘universal healthcare’.
Terry Gilliam renounced his US citizenship in 2006
reverelth (Diary) Thursday, April 29th at 1:34AM EST (link)The wiki makes some incoherent reference to both his derision for Bush and the tax liability of his family’s dual citizenship.
No mention of him asking for it back after 1/20/2009. Something tells me the latter weighed a lot heavier on that.
http://www.libertytreehugger.com
I run a small business
joecollins (Diary) Thursday, April 29th at 1:34AM EST (link)What this means is that I must give 1099s to the companies from which I buy software, paper (I buy a LOT of paper), furniture, computers, printers, etc. And I must look out for who is sending one to me to make sure it is correct. It will add to the administrative overhead and not benefit me one red cent.
Thanks, Nancy, Harry, and Barry.
How Exactly Does A Larger Bureaucracy Bring Efficiency?
Ausonius (Diary) Thursday, April 29th at 7:39AM EST (link)It does not and cannot: no analysis for efficiency has ever said to increase the paperwork and hire more paper-pushers.
A larger bureaucracy brings more control, slows things down so that the people at the top can better examine what you are doing, so that they can prevent you from thinking and acting on your own.
An excellent example of how CUTTING a bureaucracy comes from the recent successes in Iraq against al-Qaeda.
From an article for STRATFOR Intelligence Report by Scott Stewart:
“This type of rapid, sequential activity against jihadists by U.S. and Iraqi forces is not a coincidence. It is the result of some significant operational changes that were made in 2007 in the wake of the American surge in Iraq. The then-commander of the Joint Special Operations Command (JSOC), Gen. Stanley McChrystal, was instrumental in flattening hierarchies and reducing bureaucratic inefficiencies in both intelligence and special operations forces activities inside Iraq in order to create a highly integrated and streamlined organization. The result was the capability to rapidly plan and execute special operations forces raids based on actionable intelligence with a limited shelf life — and then to rapidly interrogate any captives, quickly analyze any material of intelligence value seized and rapidly re-task forces in a series of follow-on operations. The resulting high tempo of operations was considered enormously successful and a key factor in the success of the surge, and recent developments in Iraq appear to be a continuation of this type of rapid and aggressive activity.”
Note the phrase “flattening hierarchies and reducing bureaucratic inefficiencies.”
So for MAObama’s Hell-th Care, the Republicans should be hitting him every day to explain exactly how spending money on forms and on bureaucrats to push the forms saves more money!
See:
http://www.stratfor.com/weekly/20100428_jihadists_iraq_down_count?utm_source=SWeekly&utm_medium=email&utm_campaign=100429&utm_content=readmore&elq=951260892b8d4177bc6b7643cc7b62f7
Ausonius: 310-395 A.D. Teacher, Poet, Consul, General, Farmer.
Personal Tutor to the future St. Paulinus of Nola and to young Gratian, heir to the throne during the turbulent final years of the Western Roman Empire. When his former student Gratian was assassinated, Ausonius threw up his hands and retired to his farm in Gaul. Rome was captured by barbarians 14 years after his death.
Cato@rock.com
How Exactly Does A Larger Bureaucracy Bring Efficiency?
Ausonius (Diary) Thursday, April 29th at 7:39AM EST (link)It does not and cannot: no analysis for efficiency has ever said to increase the paperwork and hire more paper-pushers.
A larger bureaucracy brings more control, slows things down so that the people at the top can better examine what you are doing, so that they can prevent you from thinking and acting on your own.
An excellent example of how CUTTING a bureaucracy comes from the recent successes in Iraq against al-Qaeda.
From an article for STRATFOR Intelligence Report by Scott Stewart:
“This type of rapid, sequential activity against jihadists by U.S. and Iraqi forces is not a coincidence. It is the result of some significant operational changes that were made in 2007 in the wake of the American surge in Iraq. The then-commander of the Joint Special Operations Command (JSOC), Gen. Stanley McChrystal, was instrumental in flattening hierarchies and reducing bureaucratic inefficiencies in both intelligence and special operations forces activities inside Iraq in order to create a highly integrated and streamlined organization. The result was the capability to rapidly plan and execute special operations forces raids based on actionable intelligence with a limited shelf life — and then to rapidly interrogate any captives, quickly analyze any material of intelligence value seized and rapidly re-task forces in a series of follow-on operations. The resulting high tempo of operations was considered enormously successful and a key factor in the success of the surge, and recent developments in Iraq appear to be a continuation of this type of rapid and aggressive activity.”
Note the phrase “flattening hierarchies and reducing bureaucratic inefficiencies.”
So for MAObama’s Hell-th Care, the Republicans should be hitting him every day to explain exactly how spending money on forms and on bureaucrats to push the forms saves more money!
See:
http://www.stratfor.com/weekly/20100428_jihadists_iraq_down_count?utm_source=SWeekly&utm_medium=email&utm_campaign=100429&utm_content=readmore&elq=951260892b8d4177bc6b7643cc7b62f7
Ausonius: 310-395 A.D. Teacher, Poet, Consul, General, Farmer.
Personal Tutor to the future St. Paulinus of Nola and to young Gratian, heir to the throne during the turbulent final years of the Western Roman Empire. When his former student Gratian was assassinated, Ausonius threw up his hands and retired to his farm in Gaul. Rome was captured by barbarians 14 years after his death.
Cato@rock.com
It already happens with business...
Hugh (Diary) Thursday, April 29th at 8:20AM EST (link)Current example is the FEDS reimbursing employers for COBRA payments for terminated employees. Filing for the reimbursement is so complicated that many small business organizations have not filed or, get this, hired another company set up especially to handle the filing for them.
I love my government. Don’t you?
Socialism in general has a record of failure so blatant that only an intellectual could ignore or evade it.
Thomas Sowell
Won't you have to 1099...
dennism (Diary) Thursday, April 29th at 8:30AM EST (link)…the phone company too?
1099 just became a verb.
But... but... but... Obama just declared his love for small business
RedBeard Thursday, April 29th at 9:03AM EST (link)How can it be that he is punishing his new love interests? I assume there is a clinical term in psychology to define that behavior.
Standard-bearer for grouchy curmudgeonry since, oh, 1975 or so.
The Clinical Term In Psychology
Ausonius (Diary) Thursday, April 29th at 9:10AM EST (link)is control-freak.
But “moron” works too.
And of course we all know that this has nothing to do with supporting businesses, large or small. It is about d e s t r o y i n g
businesses.
Remember the MAObama family’s advice to graduating students: work for non-profit foundations!
Ausonius: 310-395 A.D. Teacher, Poet, Consul, General, Farmer.
Personal Tutor to the future St. Paulinus of Nola and to young Gratian, heir to the throne during the turbulent final years of the Western Roman Empire. When his former student Gratian was assassinated, Ausonius threw up his hands and retired to his farm in Gaul. Rome was captured by barbarians 14 years after his death.
Cato@rock.com
You mean... [GASP]... Obama lied about loving small businesses?
RedBeard Thursday, April 29th at 9:22AM EST (link)I am aghast! How could The One, The Lightworker, The One We’ve Been Waiting For, do such a thing?
Standard-bearer for grouchy curmudgeonry since, oh, 1975 or so.
I love beef.
Jim Tomasik (Diary) Thursday, April 29th at 1:03PM EST (link)What should a cow think about that?
What about contractors?
snopercod Thursday, April 29th at 9:26AM EST (link)So if a contractor buys $600 of lumber from Home Depot, he has to send them a 1099 at the end of the year?
Sure, require 1099s for everyone, but we're not supposed to ask about green cards
RedBeard Thursday, April 29th at 10:24AM EST (link)The world turned upside down.
Standard-bearer for grouchy curmudgeonry since, oh, 1975 or so.
This will discourage small businesses from doing business with each other
JSobieski (Diary) Thursday, April 29th at 10:25AM EST (link)Far more convenient to use a single large vendor to get your stuff from in order to minimize the number of 1099s.
Democrats love big business—-it makes big bureaucracy possible
My rules of the road for primary season.
Rule #1: Vote for YOUR first choice in the primaries
Rule #2: Vote for the R in the general.
Rule #3: Don’t let anyone convince you to violate Rule #1 or Rule #2
Rule #4: When in a center-right argument, reaffirm Rules #1-#3–it will help us all to get along better.
Rule #5: If you are using the language of the left, you probably aren’t furthering conservativism
Rule #6: The priority is issues first, candidates second, and supporters third. Nobody is bigger than the issues. Conversely, if you spend your time focusing on supporters, you are wasting everyone’s time.
STOP THE MADNESS!
A reduction in the rate of spending increases is NOT a cut!
In-state tuition for illegals is NOT amnesty!
Requiring someone to pay their medical bills is NOT an individual mandate!
Reducing tax rates is NOT a tax increase!
Missing the point
Thomas_Hauber Thursday, April 29th at 1:03PM EST (link)You are all missing the point. A change of this kind has nothing to do with health care and everything to do with taxes. Specifically VAT.
The reason to require this type of over-reporting is so that the government can more accurately assess the amount of VAT that can be generated.
I was thinking that exactly, a setup for VAT nt
Common_Cents (Diary) Thursday, April 29th at 1:35PM EST (link)Obama=Golfer in Chief, Leading from,
behind, the Back Nine.Leaders don’t create movements. Movements create leaders. Get involved. Your future depends on it.
Govt “invests” YOUR tax money for POLITICAL return rather than economic return.
Spot on!
azred (Diary) Thursday, April 29th at 6:26PM EST (link)Every major bill passed from the stimulus forward has been paving the way to the big govt nanny state end game. All the while getting total cover from the media, they continue the game plan.
So if travel is a large part of your business
azred (Diary) Thursday, April 29th at 6:35PM EST (link)will a business be required to 1099 every $600+ business? Airlines, car rental, hotels, restaurant chains, etc, etc? I currently issue 10 or fewer 1099′s in my business. Now it’s looking like 100 or more.
And with a higher number of 1099s reporting, they are required to be electronic as well (from the business).
So you stay at a hotel for a week, and request a w-9 on checkout?