Rooted in Reason: Nurturing the Seeds of Liberty

Healthcare Bill to be Funded at the Cost of Small Businesses by grassroothawaii
May 26, 2010, 2:37 pm
Filed under: Uncategorized

By Kyle Shiroma

An apparently “small” section of the new U.S. Healthcare Bill was revealed to have a drastic affect on consumers starting as early as 2012. According to the report, this section of the Obama Healthcare Bill deals with the 1099 tax form, traditionally reserved for contract workers who are not formal employees of a company.  However, upon implementation of this change, all businesses will be required to send 1099 forms to every business or individual who has supplied the former with $600 or more in goods and/or services.  This of course will have a huge impact on the way businesses will conduct there spending and operations, as most will try to consolidate their purchases into as few suppliers as possible in order to lessen the amount of 1099 forms that need to be sent out.  Consequently, the new requirement will not only bring more work for accountants, but it will also close down the small businesses that are not able to keep up with the increasing costs resulting from more tax forms to fill out.  The 1099 forms will be used to essentially tax every business purchase that is over $600, and with inflation rates the way they are now, this is basically a tax on all business transactions.  As a result of more taxes, prices will continue to rise as profits decrease, which will also, potentially, bring about the closing of many small businesses that cannot keep up with the rising price of staying open.

What is the government doing?  Small business owners are already tied down with multiple regulations to comply with, but this is just ridiculous.  The government is requiring tax forms for all transactions worth $600 or more, and what benefit will it bring?  Nothing.  This new requirement is just broadening the scope of people who will have to fill out the 1099 tax form, further strengthening the government’s dominance over small businesses.  In turn, this is most likely to drive up prices, run small businesses out of existence, and increase chaos as consumers try to keep an account of all receipts from transactions.  Bad news for small businesses, who represent 99.7% of the American Economy.


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