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The thing that has always bothered me about this new 1099 requirement is that it appears to be the “Camels nose in the tent” for a VAT tax. It’s exactly the paperwork necessary to determine if everyone has correctly payed their VAT taxes. One of the major complaints about implementing a VAT tax is that the extra paper work needed is onerous. This way they get us all to start by doing the small amount of paperwork required by the $600 limit. Then by gradually ramping down the $600 limit to $0 increasing the coverage (and paperwork) to everything, and then when they eventually implement the tax part we’re all already use to doing all the necessary paperwork.

Maybe I’m just ignoring the rule “Never attribute anything to Malice that is adequately explained by Stupidity” but it sure looks like a Malicious plot.

The head line is wrong. This 1099 thing was no mistake.

@Mark: I’m sure that it was entirely intentional. I *don’t* think that it was a “camel’s nose” going towards a Federal sales tax. What I think is that someone said “how can we pay for this gargantuan healthcare entitlement?” and someone else said “hey, I hear there’s like a hundred million billion dollars in unreported small-dollar sales every year, we should close that loophole”.

Totally maliciously intentional on the part of the totalitarians, oops I meant “progressives.”

And it was one of the many nightmares secretly hidden within ObamaCare.

Repeal and replace.

The problem with the notion that the 1099 rule change was a result of carelessness or of a mistake, is that government is always making “careless mistakes” like this, they always favor the growth of government power, and government is usually not much interested in fixing the “mistake” once it is discovered. The CPSIA disaster comes to mind as another example.

Of interest are reports that a 1099 would not be necessary for credit
card payments for business services as these “are already reported” to the
IRS according to several sites discussing this requirement.