Nancy Pelosi wasn’t kidding when she said, “we have to pass the bill to find out what’s in it.”
Most people know about the individual mandate in the new health care bill, but the bill contained another mandate that could be far more costly.
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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.
Another hidden gem of government over-reach, buried in the weeds of the coming financial regulatory ‘reform’ bill, is aimed at granting “Overlord of teh Interwebs” status to the FTC.
Here’s two perfect examples of why these kind of bills take thousands of pages: they are packed with things that have nothing to do with why the bills are claimed to be necessary. A case could be made that these bills do not really do anything concerning the alleged ‘crisis’ they supposedly address, and are instead used as vehicles to get government deeper and deeper into areas where it should have no business existing.
What does demanding businesses generate all these 1099s have to do with healthcare?
What does giving the FTC Internet oversight have to do with ‘fixing’ Wall Street?
In both cases: nothing.