IRS
will require 1099K’s be issued for all purchases over $600 next year. This has been the formal requirement by the
feds ever since Obamacare, but if one’s accounting is faithful, it makes no
difference in federal revenue, thus has rarely been don by businesses for small
purchases. It applies only to business
transactions. But with the 87,000 new agents, IRS now wants to require it for
all transactions over $600. This will generate
a mountain of paper with almost every transaction of certain businesses
required to provide a 1099. The reason this came about with Obamacare was that
it was perceived as a way to pay for it. But then IRS quickly yelled uncle
because of the tons of paper that would be coming their way.
Whywas this part of Obamacare?
Democrats believe that most small businessmen, tradesmen and farmers are crooks
hiding income. After all, they vote 90% Republican. A small subset of them actually
are petty tax cheats. By requiring 1099s Dems hope to find more money.
But think about this. If a return
and accounting are honest, the 1099 (a note to the govt that you’ve paid
someone some money) is unneeded. It
generates zero federal revenue.
So in 2023 if you go to Walmart and
buy a TV for $601, will you have to remit a 1099 to Walmart? Yes, if any
portion of its use is for business. A car repair? Yes, if the car is used for
any deduction or business. (Keep your fuel receipts handy too.) What if you mow
your neighbor’s lawn while he’s gone and he mows yours in return? Technically, you are both engaged in a
service business and must record fair market value for the services. But of course, it will be hard to catch
people doing such things. And what if a business buys something for nominally
$601 and agress to 2 payments of $302? Then there is no 1099. Do you see how this gets complicated? Is a
staggering burden for small biz?
The fed govt dreams of block chains. That is, a crytodollar being used. There will be no cash allowed. Instead of transactions being secret, by lack
of ID like they are in current crypto currencies, everyone’s business will be
viewable by govt. But we aren’t there
yet.
Think of the consequences of 2023. A voter rebellion may be in store. Or
bartering may occur. Currently, stuff
gets bartered—say, a dozen eggs for a haircut—by some very small players, often
on welfare or with no visible means of support.
The origin of currencies came when a guy went to town with his load of
firewood to barter for something else like flour. It’s very cumbersome to haul your load of
wood around town. So a guy with a
warehouse says, “Park it in my warehouse and I’ll give you a note to say you
own so much wood.” You could then go to
the miller and agree on a rick of wood for a bushel of flour. You give a claim note on your load, and he
gives you one on his load of flour in the warehouse. And you both go to claim
your stuff. But maybe he needed milk
more than firewood and traded the firewood note to a dairyman. Eventually people got to the point where they
were trading their notes. And who
verified the purchases? The guys sitting in the town square on benches “banks”. They were often Jews making coins out of
gold. So notes and coins became a
currency. And states or businesses also
made their own currencies from ancient times.
Multiple odd currencies were found all the way up into the 1950s. What
would happen if the mafia wanted secret transactions after crypto dollars were put
in place? They’d devise their own secret
notes/currency. And maybe others would like
handling this new “cash” so they would also trade mafiabucks. In fact, this might happen even without
crypto dollars, simply because govt has made the system too burdensome or too
surveilled.
2023 is going to be an interesting
year.
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