Under the Healthcare Reform Bill, all business will now have to send a 1099 to every vendor that receives more than $600 from them. No longer is 1099 reporting limited to services received from the self-employed. Every business owner on the Outer Banks from the restaurant owners to the contractors to the people who run small businesses out of their homes will now have to send a 1099 to every vendor that they pay more than $600 for any goods and services. Yes, that’s GOODS and services. Yes, that’s EVERY vendor.

Every purchase you make will be subject to this new law.  Pay your landlord the rent?  1099.  Purchase a computer from Staples?  1099.  Spend over $600 buying paper bags as required by Basnight’s new law?  1099.  Electric bill?  1099.  Your cost of doing business just went up dramatically.

Has the Outer Banks Chamber of Commerce warned businesses about this yet?

What does this have to do with healthcare?  Since the cost of this bill is going to be in the billions annually,  the government is going to need to wring every penny out of every taxpayer.  They think they’re going to match up 1099s with tax forms to make sure that businesses are reporting the correct amount of income.  No matter that the cost of this reporting will far exceed the increased revenue.  No matter that it will cost small business thousands of dollars.

According to CNN, House and Senate staffers “essentially have a cupboard full of convenient revenue raisers that they can put into bills when they need it,” notes Chris Edwards, director of tax policy studies for the libertarian Cato Institute. In the case of the 1099 changes, he says, “this was sitting around, the IRS wanted it and had testified in favor of it, and they needed a revenue raiser. This was just a convenient thing.”

You have to hand it to Obama, he is creating jobs, for the Accountants and the IRS.

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