Posted Tue, August 10, 2010 at 2:12 PM

Anthony,

I could not stay away from this one. Your response has nothing to do with what Mr. Rademacher posted. The story Mr. Rademacher posted is NOT at all misleading. It is a FACT that the new health care bill will require many constraints on small businesses and one of those being the issuance of 1099’s beginning in 2012 for goods or services purchased from a store, vendor or other supplier. The 1099’s of old were created to make sure those workers whom were independent contractors or sub-contracted labor paid their income taxes. These 1099’s were simple to track and did not require much reporting except for the name, SSN, address and amount of earnings each year. In a small business, the owner(s) do the work themselves, employ workers, or contract the labor out.

Within the new health care bill, the amount of NEW 1099’s that are to be required could become so burdensome that depending on the type of business, it may force some small businesses to close the doors. FOR EXAMPLE , let’s say you have a widget maker that buys many components from different vendors to make his product. Once completed the widget maker sells his product. Let’s say the widget maker is operating  on a small profit margin. What will that do to the profits by adding more government regulation?? Before the health care law, the widget maker would have had NO 1099’s to issue if he did not pay out contract wages. Under the new health care bill the widget maker would have to issue a 1099 to every vendor that he spent more than $600 with throughout the year. This may create many 1099’s to issue because of the many components that are involved in this widget. For those of us that are in or have operated these types of small businesses, we understand what more government regulation does to our bottom line. It may cause us to raise prices that could cause us to lose market share, it may cause us to lay off workers or it may cause us to shut the doors. The one certain thing it will do is cause certain small businesses more accounting, more recording , more paperwork and more money.

I was going to leave politics out of this discussion but since you brought it up let’s take a look. It was a Democratic President whom drove the new health care bill. It was a democratic Senate and House whom pushed it through. It was written by Democrats. You make the call as to who is putting more regulation on small businesses with this health care bill.

Posted Tue, August 10, 2010 at 9:14 PM

I had a small business for awhile and did as much of the bookkeeping as I could myself to keep costs down.  I had maybe at most a handful to take care of at the end of the year.   If I had to do one for every vendor that I spent $600 with it would have increased my burden on that form by at least 10 fold.  Plus, you have to track it all during the year so that you know who to 1099.  I never tracked that, but I imagine it would be quite time consuming.  This makes life much more burdensome for a small business, unless you want to pay someone to do the books.   I don't think it would have been the downfall of my business, but quite a pain.  It will hurt the smallest businesses who do their own books.  Bigger businesses with lots of staff and IT systems won't even notice it and will just pass on the cost to the consumer, if they do.  I hope this gets removed.      

Posted Wed, August 25, 2010 at 8:28 PM

One of the aspects of the new Finance bill requires any business that offers credit to a client to first submit that transaction to a government agency who will either approve or disapprove the transaction. You may lose business based on a decision made by some official who knows nothing about you or your client. These decisions will be made strictly by MBA ideals.

Regards,

Joe Slater