Health care law's massive, hidden tax change( 1099's)

CNN ^

[synbad600]

AETNA screwed me too, indirectly. My boss lost his personal health insurance and now I am being forced into a group plan at work, with no salary increase to cover my heretofore unbudgeted expenses.

Both my bosses voted for that jerk and are getting screwed by this also. I still don't think they get it. And it's only going to get worse.

[screaminsunshine]

They have to pay at least 50%

[ding_dong_daddy_from_dumas]

And there is a provision in the financial reform bill snaking its was through the senate right now that will force banks to report absolutely every single deposit any person makes to a checking or savings accounts, or any other financial instrument, or transfers between accounts.

They might need more than 16,000 new IRS agents for that.

[Canedawg]

This is getting insane.

We are living in an Age of Madness.

[mojitojoe]

LOL, I have no intention of doing that. They can KMA and I’m not kidding.

[synbad600]

I don’t know for sure yet, but either way, I’m paying the other 50%.

[screaminsunshine]

Yep. My co. pays 100% But with Obamacare I doubt it will last.

[stephenjohnbanker]

LOL!!

[freeandfreezing]

Few people realize the volume of filings that this will generate. Even a tiny business spends more than $600 per year with a lot of vendors -- the phone company, the electric company, office supply vendors, Home Depot, etc. So we're talking hundreds of millions of 1099 forms being filed -- many more than W2s or 1040s. Even things like gasoline purchases have to be reported. So now you'll have to know the EIN, address, corporate name, etc. of every other business in the country, and that means tens of millions of W9 forms will get sent out to gather that information.

To put it in perspective, at the $600 threshold for filing a 1099, the taxable corporate income resulting from the $600 sale is likely to be on the order of $50 to $60, of which about 1/3 is payable as federal corporate income taxes. So we're talking about a tax document being filed for every $20.00 in revenue to the IRS. Somehow I think that won't work out very well. The only beneficiary will be the post office.