Beginning in 2012 businesses will be required to report all payments in excess of $600 for services or merchandise to the Internal Revenue Service on a Form 1099. That means businesses will have to send a 1099 to other businesses for virtually all purchases.
This onerous regulation will be expensive while adding absolutely no value for the cost incurred to comply. So much for driving costs out to improve competitive positions.
The Washington bureaucrats will probably spin this as a ‘job stimulus’ initiative because it might force companies to add a job to process this paper. But it will cost American consumers in higher prices. That is until a foreign company not subject to this nonsense takes all the work and eliminates the need for any U.S. jobs.
Kentucky’s political leadership saw no need to protect the commonwealth’s businesses from this type of onerous federal mandate. Too bad. This stinks. This hurts.