I’ll let you decide, but I just ran across this in Bloomberg Businessweek:
To capture $2Billion or more a year in taxes on income that goes unreported by contractors or small businesses and those in the ‘shadow economy’ (working for cash), this little gem was inserted into the Health-care bill before it passed in March.
KEEP IN MIND, IT HAS NOTHING TO DO WITH HOSPITALS, DOCTORS, DRUGS OR YOUR HEALTH. It’s all about the money government can grab. It’s just part of the Health-care debacle. And it was inserted by those wizards of the Senate Finance Committee to help offset the cost of Health-care bill, the very one that was supposed to reap us so much in savings by doing away with fraud, duplication, misuse and abuse so prevalent in health care (and every other government run program) before they saved us.
This simple little provision starting in 2012 requires companies to report to the IRS all payments of more than $600 a year paid to any vendor. Imagine the paperwork. Businesses already file 1099s for freelancers and others not incorporated, but this expands it even more.
Let’s see what that might include; cell phone service, gas for company vehicles, new computer purchases, package pick-up and delivery services and the list goes on and on.
This is a good reason to learn more about and support the Fair Tax which will abolish the IRS and get rid of a whole slew of other taxes that decimate your paycheck every two weeks. I’m talking Medicare, payroll taxes, income taxes and any other withholding tax separating you from your money. CAUTION: Don’t be a dreamer now, we’ll still have to pay taxes otherwise how do roads and bridges get built and necessary services get funded? But there is a better way that will unfetter businesses, large and small from being the tax ogre for the federal government.
One last thing I love about the Fair Tax is instead of them always picking on those of us who do pay federal taxes (a shrinking pool I might add), the Fair Tax widens the tax base tremendously because federal taxes would be paid only one time for the final end user at the retail level. Therefore everyone who buys anything would become federal taxpayers; criminals, those now working for cash and foreign visitors. Now before you think I’m inhumane, mean and cruel they have figured out a method in the Fair Tax system of compensating the elderly, poor and lesser advantaged. Please, check it out at FAIRTAX.org.