Hidden clause set to undermine free enterprise and privacy
By Craig R. Smith, Chairman, Swiss America
July 26, 2010
Welcome to the latest example of the never-ending consequences of Obamacare. In the new Health Care Reform Act of 2010, (Patient Protection and Affordable Care Act) Americans face yet another major economic-tax-privacy power grab by government.
Now is the time to engage in the process of repealing the worst clause. Section 9006 is the latest attempt to strip Americans of our financial freedom. Starting in January, 2012, every U.S. businessperson will be required to report all goods and services purchased in excess of $600 (including rental cars, airline tickets, office supplies) on a 1099 form.
Why force millions of businesses to disclose everyday transactions? It’s a disguised effort to collect an estimated $17 Billion in new taxes to help pay for health care reform over the next ten years. This new 1099 reporting requirement provision will likely cost businesses and government more money than it generates.
According to an article in the Washington Post, "The idea behind the law is simple: Research shows taxpayers do a much better job of reporting taxable income when they know the IRS is receiving information about their transactions."
Nationwide, businesspeople are outraged by the new reporting requirements embedded within Section 9006 of Obamacare for at least three important reasons:
First, the burden of paperwork this ill-conceived provision will put upon businesspeople will be devastating and is likely to further kill jobs at a time when we desperately need new job creation.
Second, this provision is designed to further invade the public's privacy and is another illustration of how our nation is slowly being pushed toward a totalitarian state by the elite ruling class who now control the White House, Congress, academia, mass media and entertainment.
Third, section 9006 raises new concerns of the possibility of another gold confiscation by the Federal government like we had back in 1933 during the Great Depression, despite recent government claims otherwise by Rep. Anthony Weiner (D- NY) on ABC News.
To the contrary, John Levin, HSBC Bank's Managing Director of Global Metals and Trading recently explained why top fund managers are holding their physical gold in Europe:
"They do not want their gold stored in the U.S. but preferably in Europe because they feared that at some stage the U.S. Administration might follow the path set by Franklin D. Roosevelt in 1933 and confiscate all U.S. gold holdings as part of the country's strategy in dealing with the nation's economic problems," reports Mineweb.com.
Historically, governments have banned the ownership of gold just prior to their citizens losing confidence in their fiat paper money. During the last U.S. gold confiscation the only gold holdings that could be kept without fear of confiscation were collector coins. Although the laws could be further changed, numismatic coins have historically been the safest and most private form of gold to own.
For more information about how to preserve financial freedom and privacy, request a free copy of Swiss America’s The Right To Own Gold Special Report and Rare Opportunity DVD.
Step #1: Let’s start repealing Obamacare
(This chart illustrates Obamacare's bewildering complexity)
Rep. Daniel Lungren, (R-CA) has introduced legislation [H.R. 5151, Small Business Paperwork Mandate Elimination Act] to repeal Section 9006 of the health care bill. He recently told ABC News: "I am dumbfounded that this Administration is doing all it can to make it more difficult for businesses to succeed rather than doing all it can to help them grow." Sen. Mike Johanns, R-Nebr. Sen. Richard Burr, R-N.C have also introduced S. 3578 Small Business Paperwork Mandate Elimination Act in the Senate.
The U.S. Chamber of Commerce, the world's largest business federation representing the interests of more than three million businesses and organizations strongly supports H.R. 5141, which if passed into law, would repeal the onerous paperwork burdens imposed on business.
We also strongly support passage of H.R. 5151 and S. 3578 to repeal Section 9006 of the health care bill and encourage the public to let their elected officials know they want them to support this important bill. As of 7.26.10 H.R. 5141 has 124 co-sponsors and S. 3578 has 12 co-sponsors. Support is growing daily.
Sample letter to Senator or Representative to co-sponsor the bill from the Industry Council for Tangible Assets (ICTA)
Subject: Support HR 5141
Please repeal the new IRS Form 1099 requirement found in Section 9006 of Public Law 111-148, the Health Care Reform Act that requires me to issue a tax information reporting form to virtually all of my customers and vendors, including corporations. This will be devastating to my small business.
This new law creates a monumental increase in my paperwork burden. I buy and sell rare coins, currency, precious metals, and collectibles that I purchase for my inventory from hundreds of other dealers as well as from my retail clients. (Other than a few items that can be obtained from the US Mint, these are the only sources of my merchandise.) This new 1099 provision will require me to file hundreds, if not thousands, of these forms.
Further, it is not simply a matter of completing the form, but also the work and time involved in obtaining the proper tax identification number and dealing with backup withholding requirements.
In addition, I will be required to obtain confidential tax ID information from my colleagues and customers and also be responsible for safekeeping that confidential data subject to penalties of individual privacy protection laws.
I urge you to co-sponsor HR 5141 to prevent this business and privacy nightmare.
8.4.10 -- In Missouri 71% say NO to Obamacare: "Missouri voters on Tuesday overwhelmingly rejected a key provision of President Barack Obama's health care law, sending a clear message of discontent to Washington and Democrats less than 100 days before the midterm elections. About 71% of Missouri voters backed a ballot measure, Proposition C, that would prohibit the government from requiring people to have health insurance or from penalizing them for not having it," reports AP.
Behind the Curtain: The Health Care Law’s Impact on Small Business - 7.26.10 - The U.S. Chamber of Commerce unveils a new Web site where businesses will be able to register the effect of (read: grievances) financial and regulatory changes in the health care reform law.
The Coming 1099 Revolution: Are You and Your Clients Ready? - American Institute of Certified Public Accountants
Defusing a $100 Trillion Healthcare Time Bomb - By David Bradshaw, Editor, RMP
THE BATTLE: How the Fight between Free Enterprise and Big Government Will Shape America’s Future - By Arthur C. Brooks, president of American Enterprise Institute