Wednesday, July 21, 2010

Health Care's Dirty Little Secrets

Dirty little secrets keep emerging from the belly of the beast, otherwise know as the Obama health care bill, imposed by Democrats on the American people.

And here's another one today as reported by ABC News:

Starting Jan. 1, 2012, Form 1099s will become a means of reporting to the Internal Revenue Service the purchases of all goods and services by small businesses and self-employed people that exceed $600 during a calendar year. Precious metals such as coins and bullion fall into this category and coin dealers have been among those most rankled by the change.

This provision, intended to mine what the IRS deems a vast reservoir of uncollected income tax, was included in the health care legislation ostensibly as a way to pay for it. The tax code tweak is expected to raise $17 billion over the next 10 years, according to the Joint Committee on Taxation.

Taking an early and vociferous role in opposing the measure is the precious metal and coin industry...

Pat Heller, who owns Liberty Coin Service in Lansing, Mich., deals with around 1,000 customers every week. Many are individuals looking to protect wealth in an uncertain economy, he said, while others are dealers like him.

With spot market prices for gold at nearly $1,200 an ounce, Heller estimates that he'll be filling out between 10,000 and 20,000 tax forms per year after the new law takes effect.

"I'll have to hire two full-time people just to track all this stuff, which cuts into my profitability," he said.

Republican Representative Dan Lungren has introduced legislation to repeal this section of the health care bill recognizing it will place a significant burden on the small businesses who are the job creators of our economy. However with entrenched Democrat control in place it will prove impossible to pass.

Which brings up November.

Unless we make real changes in those elected to lead, at both the national and state level, we will certainly face unprecedented economic disaster.

Real change begins on November 2. If you haven't engaged in the process of electing principled conservatives to office this should motivate you.

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