ObamaCare & Additional Tax Burdens for Business

Now this is completely ridiculous !

A Bigger, Badder IRS: Brought to You by Obamacare [Daniel Foster]


The National Taxpayer Advocate, tasked with representing your interests within the Internal Revenue Service, says the IRS must restructure — and grow — to handle its new redistributive and enforcement responsibilities under the Affordable Care Act:

Though the IRS's main mission is to collect taxes, it has been given a key role administering health insurance premium subsidies, tax credits for small businesses, assessments on employers and the mandate that beginning in 2014 everyone obtain insurance.
"I have no doubt the IRS is capable of administering social programs, including health care," Olson said. "But Congress must provide sufficient funding and the IRS itself must recognize that the skills and training required to administer social benefit programs are very different from the skills and training that employees of an enforcement agency typically possess."

Moreover, to "reduce the under-reporting of business income," the ACA will require all businesses and tax-exempt orgs to issue 1099s to all vendors with whom they do more than $600 of business (both services and goods) in a given tax year, an onerous requirement that "may impose significant burdens on businesses, charities, and government agencies," and that "may turn out to be disproportionate as compared with any resulting improvement in tax compliance."

"For example, if a self-employed individual makes numerous small purchases from an office supply store during a calendar year that total at least $600, the individual must issue a Form 1099 to the vendor and the IRS showing the exact amount of total purchases," the IRS release said.

The advocate estimates this will affect 40 million businesses, including 26 million sole-proprietorships.

And why is this tax reporting stuff even in a health-care bill? To help fund it, that's why. To help Pelosi and Reid and Obama get the faux deficit score they needed, the measure is expected to raise $13.7 billion over ten years — though that's before administrative and discretionary costs, which will add another $115 billion or so to the bill's official price tag.

Pass the bill to find out what's in it.