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May 06, 2010

Unintended Costs of "Making Health Care Affordable"

CNN discovers that Form 1099 issue I wrote about a few days ago:

An all-but-overlooked provision of the health reform law is threatening to swamp U.S. businesses with a flood of new tax paperwork.

Section 9006 of the health care bill -- just a few lines buried in the 2,409-page document -- mandates that beginning in 2012 all companies will have to issue 1099 tax forms not just to contract workers but to any individual or corporation from which they buy more than $600 in goods or services in a tax year.

The stealth change radically alters the nature of 1099s and means businesses will have to issue millions of new tax documents each year.

Right now, the IRS Form 1099 is used to document income for individual workers other than wages and salaries. Freelancers receive them each year from their clients, and businesses issue them to the independent contractors they hire.

But 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.

Question of the day: when will they discover the ticking time bomb in the financial reform bill?

Note to our Congressional Overlords: this isn't helping. If the idea is to protect American consumers and businesses, you're doing it wrong.

Posted by Cassandra at May 6, 2010 01:42 PM

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Comments

...the proposed Bureau of Consumer Financial Protection would be headed by a single director without a bipartisan commission to provide necessary checks and balances.

Because, y'know, that worked so *well* with Fannie Mae and Freddie Mac.

Posted by: BillT at May 6, 2010 02:04 PM

If the idea is to protect American consumers and businesses, you're doing it wrong.

That's not the idea, that's just the name of the bill. Just like the Fairness Doctrine isn't about fairness, and the Employee Free Choice Act isn't about protecting employees' rights to a free choice.

The Dems know *exactly* what they're doing -- lying like rugs.

Posted by: BillT at May 6, 2010 02:10 PM

Welcome to Manufactured Crisis Central.

We are pleased to bring you our new lineup of "Nero fiddling while he burned down Rome" and "Germany's Reichstag fire" and last but not least, "Emergency rule and Martial Law".

The package bundle can be had for the low low bundled cost of $9.99 (triln), taxes and service charges not included.

All services are non-deductible and not under US Constitutional law.

Posted by: Ymarsakar at May 6, 2010 05:04 PM

Long ago, John W. Campbell (the Analog Science Fiction magazine editor for decades) wrote in something about the end of nations to the effect that that there was a time for the wise to stop trying to save the nation and to begin to push for the destruction of it. Once the swing had gone too far to recover, it was better to help push the swing over, so that the new swingset could be built sooner. Not saying that that time has come, mind. Just something to think about.

Posted by: htom at May 6, 2010 05:18 PM

My employer (a well known element of the Military-Industrial Complex™) isn't waiting until 2012 or 2014; beginning July 1, 2010 the health care plan is getting revised...as in, it's going to cost me more two months from now.

Gee, thanks, Congrefs...

Posted by: camojack at May 7, 2010 03:39 AM

Speaking of doing it wrong, the Congers have only three weeks to fix the mandatory 21% cut
in MediCare reimbursements to participating physicians. If the cut kicks in, watch how many physicians decide to be non-participants in MediCare -- which will cut the legs right from underneath HellCare™ and, by extension, most of TriCare.

Congress has had eight years to adjust the Sustained Growth Rate formula used to calculate MediCare reimbursements and hasn't done it yet.

Posted by: BillT at May 7, 2010 05:07 AM

...beginning July 1, 2010 the health care plan is getting revised...as in, it's going to cost me more two months from now.

That's the Plan, camo. Paying for four years before becoming eligible for benefits allows 'em to accrue the pot of money they'll need for the reimbursements starting in 2014.

Come on, November...

Posted by: BillT at May 7, 2010 05:14 AM

That money is for their own pockets tho.

Posted by: Ymarsakar at May 7, 2010 06:42 AM

You don't want to know about 'Cash for Caulkers.'
It is a home improvement stimulus bill. Those nasty Repugs have inserted a provision (there is your sex and relationships plug for the day and yes, I am really in a snit because the more I learn about taxes the more I loathe the IRS and Congress) that the bill will go away if the Democrats can't fund it. It passed, so we will see.

Posted by: Cricket at May 7, 2010 08:18 AM

It won't be classified as home improvement unless you hire SIEU to remove your present water heater and replace it with a 5-gallon pail sitting on a battery-powered hot plate, then bring in ACORN associates to stick plastic sheeting on all your windows with green duct tape.

Posted by: BillT at May 7, 2010 12:57 PM

And after SEIU and ACORN have gone to all that trouble, you will be evicted because you can't pay for the 'capital improvements.'

Posted by: Cricket at May 7, 2010 06:30 PM

That's the Plan, camo. Paying for four years before becoming eligible for benefits allows 'em to accrue the pot of money they'll need for the reimbursements starting in 2014.
Come on, November...
Posted by: BillT at May 7, 2010 05:14 AM

That money is for their own pockets tho.
Posted by: Ymarsakar at May 7, 2010 06:42 AM

Doubtless some of those revenues will find their way into the coffers of various campaigns for supporters of the legislation...it's the American Way™.

As for accruing "the pot of money they'll need for the reimbursements starting in 2014", it won't take too many years 'til that's all gone too.

But you knew that...

Posted by: camojack at May 8, 2010 02:28 AM

> If the idea is to protect American consumers and businesses, you're doing it wrong.

For the party in power, this hasn't been the idea for many decades.

Posted by: O Bloody Hell at May 8, 2010 03:46 AM

...it won't take too many years 'til that's all gone too.

I give it until 2015, tops -- if it's still in existence by then.

One major source of funding is evaporating even as we speak. A lot of businesses have announced they'll pay the fine rather than pay for their employees' health plans -- the fine is 'way less expensive.

Only Congress could come up with a law that makes *not* complying with the intent more attractive than complying with it...

Posted by: BillT at May 9, 2010 01:30 PM

Only Congress could come up with a law that makes *not* complying with the intent more attractive than complying with it...
Posted by: BillT at May 9, 2010 01:30 PM

November can't come soon enough, from a political perspective. Hopefully we can rid ourselves of some of the "RINO" Republicans then, too...

Posted by: camojack at May 10, 2010 03:35 AM

I had a comment but it got eaten. Oh well.

Posted by: Cricket at May 13, 2010 09:39 AM

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