Supply-Side Forum

Henry Meers · Posted: Mon Jul 26, 2010 7:38 pm Post subject:

Judith,

The people may have awakened, but there is a more ominous thought. What if there is little or nothing to tax? Far fetched? Probably, although the Great Depression was supposed to be an inflationary event after FDR debased the dollar 60%, yet it was deflationary in practical terms.

I don't know where that $600 number came from; but I do know that, by the time the Solons of the Swamp figure something out, it's over. Some of the small businessmen around here are walking on eggshells: they can't pay the rent, and the landlords don't really want to ask. A lot of prices are going to be renegotiated downward, just like the 'thirties.

Judith · Joined: 02 Sep 2006 Posts: 1382

"Under the Democrats’ new healthcare reform bill, companies, nonprofits and government offices are required to file 1099 forms with the IRS when goods purchased from another business exceed $600 in a year. Under previous law, the reporting requirement pertained only to services exceeding that amount.
The new mandate goes into effect at the start of 2012.

Conservatives on Capitol Hill have joined many in the business community in slamming the provision, arguing that it will hobble small businesses with onerous new paperwork mandates ..."

http://thehill.com/business-a-lobbying/111005-gop-chamber-target-new-tax-reporting-rule

The only good news is that Sen. Mike Johanns (R-Neb.) is trying to get this repealed.

Is this the same section Ed B was referencing? Or, do we have two separate sections - applying to business-to-business dealings as well as business-public dealings?

"Democratic leaders are defending the new 1099 mandate, arguing that it will close the business tax gap. Indeed, the Congressional Budget Office estimated that the change would increase government revenues by $17 billion over the next decade."

Nov can't get here soon enough.

Judith · Joined: 02 Sep 2006 Posts: 1382

Henry - good point. A successful president needs "peace and prosperity". obama is definitely NOT going to be successful.

Dick_Fox · Joined: 19 Aug 2006 Posts: 4473 Location: Orlando, FL

Ed Hanson · Posted: Wed Jul 28, 2010 7:58 pm Post subject:

Just to make the point clear. Paper work cost money. I asked a very small contractor what it cost him to generate a 1099. Like almost every full time small business, he has a tax accountant to keep his forms in good order. He is charged $95 for each 1099. Quite a wedge, $95 on every $600 vendor.
_________________
Politicians will ask you what you want,
Economists will ask you what you want more.
Ed H

Ed Hanson · Posted: Wed Jul 28, 2010 8:04 pm Post subject:

Now in a political sense. I can not imagine a single dem who could be elected if the opponent did nothing but ask continually how the dem could vote for such a tax law. It should be asked loudly and often. So often that even the question would be asked in small dem gatherings. After all, many small business owners are dems, too.
_________________
Politicians will ask you what you want,
Economists will ask you what you want more.
Ed H

Judith · Joined: 02 Sep 2006 Posts: 1382

Ed H - I agree (and thanks for the detail). However, I bet 90% of the population does not even know this is coming down the pike at them.
I do expect a mighty hue and cry when this goes into effect (2012?). Too bad that is way after the Nov election.

Dick_Fox · Joined: 19 Aug 2006 Posts: 4473 Location: Orlando, FL

Judith · Joined: 02 Sep 2006 Posts: 1382

"The only good news is that Sen. Mike Johanns (R-Neb.) is trying to get this repealed. "

I agree with your comment about the Republicans. Maybe they are adding it to their talking points for the Nov elections? (want to save this tidbit for face-to-face campaigns)
I guess I would also note that there are a fair number of primaries yet to be held. Maybe that is another reason the Republicans seem SO silent on everything? Oct might be 'exciting'. I can only hope....