The New Healthcare Law and Your Business

[iamapt]

To fund the new healthcare bill, any small business must file a 1099 form when purchasing over 600.00 from any vendor. This will affect 40 million businesses. Have fun with the paperwork. This is to keep vendors from under reporting their income and source of 18 billion dollars.

[True blue (and gold)]

I'm sorry...how do we benefit if vendors DO under report their income?

[iamapt]

I'm sorry...how do we benefit if vendors DO under report their income?

Can't visualize any benefit to us by underreporting this by vendors, but that line was to describe why it was put in there. The point is according to Wall Street Journal, this makes almost all transaction of goods, reportable to the IRS (which also the IRS states it would be overwhelming in scope), businesses would spend excessive time, expense keeping up with. Presently both parties recognize the nightmare it is going to create, and want to eliminate it. So why isn't it done? The 18 billion has to come from another source, and parties can not agree on how to do this. Republicans want change in health bill, democrats want to tax international corporations. Failed to pass this week with strictly party line voting.

[Lucky Charms]

To fund the new healthcare bill, any small business must file a 1099 form when purchasing over 600.00 from any vendor. This will affect 40 million businesses. Have fun with the paperwork. This is to keep vendors from under reporting their income and source of 18 billion dollars.

 

What if it (product) is purchased from an illegal immigrant???

[SKINPIG]

What if it (product) is purchased from an illegal immigrant???

 

If the illegal immigrant is Mexican, just ignore it.

[swamprat]

How are they calculating this 18 billion? They'd have to know vendors are under reporting wouldn't they? Did the IRS stop doing audits?

 

Did any of the geniuses, coming up with this plan, stop to think about the taxable profit lost by businesses having to expand accounting costs to cover for this paperwork nightmare and the cost of the bureaucracy required to process compliance? I'd estimate those 40 million business, as a group, will easily spend 1 trillion dollars or more to comply and the IRS will spend at least billion on processing. So let us lose 30 billion to collect 18.

 

The environmentalists will jump for joy, too. This should kill millions of trees.

[Run To State]

How are they calculating this 18 billion? They'd have to know vendors are under reporting wouldn't they? Did the IRS stop doing audits?

 

Did any of the geniuses, coming up with this plan, stop to think about the taxable profit lost by businesses having to expand accounting costs to cover for this paperwork nightmare and the cost of the bureaucracy required to process compliance? I'd estimate those 40 million business, as a group, will easily spend 1 trillion dollars or more to comply and the IRS will spend at least billion on processing. So let us lose 30 billion to collect 18.

 

The environmentalists will jump for joy, too. This should kill millions of trees.

:thumb: :thumb: :thumb:

[KnightBird]

I am in an industry that when I provide over $600 worth of services, businesses have had to file a 1099 on me for at least a couple decades. Is this claim against the healthcare law legit? Or is it required in this type of legislation to define all forms of income, and thus providing some commentator a line to pull out of context and complain falsely about?

[75center]

I am in an industry that when I provide over $600 worth of services, businesses have had to file a 1099 on me for at least a couple decades. Is this claim against the healthcare law legit? Or is it required in this type of legislation to define all forms of income, and thus providing some commentator a line to pull out of context and complain falsely about?

 

The healthcare law expanded the requirements to include purchases and corporate providers. It will result in a huge increase in the number of 1099's issued.

[Fastbreak]

Rat nailed it.

 

Requiring businesses to invest further hours of non-revenue generating time and expense to verify what is already auditable by any competent accountant, ultimately reduces the overall pool of cash being generated, thus reducing taxable revenues across the board.

 

If the 40 million number is accurate, and each merely invests an average of one hour a week doing this added bookkeeping at an average of $10 per hour... that's $20.8 Billion a year in lost or redirected productivity. It's an asanine step backwards just to ensure more government browbeating instead of lifting some of the already cumbersome tax code and similarly meaningless requirements and hassles that ensure an economy that should be roaring along like a Lamborghini is sputtering along like a modestly maintained 1979 Chrysler Cordoba with once "soft and luxurious Corinthian leather" that is now dried, cracked and split.

[Bluegrasscard]

Sarbanes-Oxley crippled most publicly-held businesses. The Health takeover act will kill many of them and privately owned businesses as well.

[swamprat]

By the way, health care providers have to comply, too. This just keeps getting better and better.

[Trinity alum]

How are they calculating this 18 billion? They'd have to know vendors are under reporting wouldn't they? Did the IRS stop doing audits?

 

Did any of the geniuses, coming up with this plan, stop to think about the taxable profit lost by businesses having to expand accounting costs to cover for this paperwork nightmare and the cost of the bureaucracy required to process compliance? I'd estimate those 40 million business, as a group, will easily spend 1 trillion dollars or more to comply and the IRS will spend at least billion on processing. So let us lose 30 billion to collect 18.

 

The environmentalists will jump for joy, too. This should kill millions of trees.

Have any of you people run a business lately? Most businesses of any size at all generate their accounts payable through a computer program. Vendors are set up with a number. At the end of the year you run a report and mail them out. It is no big deal. If you keep your books by hand and have lots of vendors it could be a problem. I suggest you throw away your green eye shades, your quill pens and your leather bound account books and join the 21st century.

[Fastbreak]

Have any of you people run a business lately? Most businesses of any size at all generate their accounts payable through a computer program. Vendors are set up with a number. At the end of the year you run a report and mail them out. It is no big deal. If you keep your books by hand and have lots of vendors it could be a problem. I suggest you throw away your green eye shades, your quill pens and your leather bound account books and join the 21st century.

So we can safely place you in the "I'm for larger more intrusive government" column?

[75center]

Have any of you people run a business lately? Most businesses of any size at all generate their accounts payable through a computer program. Vendors are set up with a number. At the end of the year you run a report and mail them out. It is no big deal. If you keep your books by hand and have lots of vendors it could be a problem. I suggest you throw away your green eye shades, your quill pens and your leather bound account books and join the 21st century.

 

I do run a business. In fact, I run accounting for a bunch of them. It can be a very big deal. Account maintenance, account review, communications getting the information, labor for printing, reviewing, stuffing, mailing. Cost of supplies, cost of postage. It's a lot more than you make it out to be. Now, figure a small business that may go from 10 to 50 1099's. Very possible. What do you think it will cost them? This does not even take into account the many places still not automated. They're out there. A lot of them. This will be great for me but make no mistake, this is going to hurt a lot of small companies. Good move. Not!