IRS strong arms small businesses for health care

This is only the beginning, we know. Repeal! Replace! Reform!

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 business (both services and goods) in a tax year, an onerous requirement that "may impose significant burdens on businesses, charities, and government agencies," 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 — that's before administrative and discretionary costs, which will add another $115 billion or so to the bill's official price tag in the next decade.

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