Okay, it’s really time to scrap our tax code.
From the Cato Institute:
Basically, businesses will have to issue 1099s whenever they do more than $600 of business with another entity in a year. For the $14 trillion U.S. economy, that’s a hell of a lot of 1099s. When a business buys a $1,000 used car, it will have to gather information on the seller and mail 1099s to the seller and the IRS. When a small shop owner pays her rent, she will have to send a 1099 to the landlord and IRS. Recipients of the vast flood of these forms will have to match them with existing accounting records. There will be huge numbers of errors and mismatches, which will probably generate many costly battles with the IRS.
You don’t have to imagine the nightmare that will accompany such a system. $600 for most businesses is de minimis and asking them to keep records of each of these transactions and issue 1099s will be a nightmare. As the blogger noted this is nothing but a deadweight loss and creates no value and could in fact stymie it. But hey! when it comes to the busybodies in the government anything that prevents you from being a productive member of society is a good thing.
At least the Dems can keep comforting themselves that the bill will “save” businesses money and make them more competitive.