More Federal Government Idiocy

A provision in the health care reform bill (H.R. 3590, Sect. 9006) requires any business that purchases more than $600 of goods or services from another business to provide that business and the IRS with a 1099 tax form. Goods and services purchased by a small business – ranging from internet and phone services, shipping services, travel, lodging, and food expenses – will now give rise to a new paperwork burden at tax time.

Obviously, this provision in the health care bill has nothing to do with health care.  The provision was added in order to claim another revenue source to fund the health care bill.  Regardless of what one’s view is with respect to the health care bill, it is my hope that we will all be able to agree that enlisting businesses as an enforcement arm of the IRS to snitch on companies with which they do business is the wrong way to proceed.

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