Love the so-called Health Reform Bill
Jul 26th, 2010 by David Anderson
Two articles of news on the devastating effect of this bill. The first from ABC News shows how the unrelated 1099 provision which will crush small business is to affect the gold dealers.
Section 9006 of the Patient Protection and Affordable Care Act will amend the Internal Revenue Code to expand the scope of Form 1099. Currently, 1099 forms are used to track and report the miscellaneous income associated with services rendered by independent contractors or self-employed individuals.
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, according to Diane Piret, industry affairs director for the Industry Council for Tangible Assets. The ICTA, based in Severna Park, Md., is a trade association representing an estimated 5,000 coin and bullion dealers in the United States.
“Coin dealers not only buy for their inventory from other dealers, but also with great frequency from the public,” Piret said. “Most other types of businesses will have a limited number of suppliers from which they buy their goods and products for resale.”
This provision will not only make you report the people that you hire, but everyone with whom you do $600 of business with. Suppliers, the plumber, the lawyer, the book keeper, even though they already have to report themselves.
Even worse is this story from the Washington Times, a rule in the Health Care Bill will actually raise costs of insurance for some HSA companies and may deprive them of that option which may result in either no coverage or more expensive coverage for those covered.
Josh Dent is an early victim of Obamacare. The lanky, shaven-headed machine operator likes the medical insurance plan his employer, Acorn Signs, provides him. But under the newly enacted Affordable Care Act, his insurance policy will get less affordable. A provision in the law is putting his insurance company out of business, and whatever replaces Mr. Dent’s current policy will likely be much more expensive.
The way the 29-year-old sees it, Acorn Signs will have to cut benefits or cut pay. One way or another, he figures, the switch to a new insurer will cost him.
Steve Gillispie, Acorn’s president, is distressed by this unexpected development. A year and a half ago, he was facing premiums of $150,000 from an established insurer, up from $80,000 just three years before. Then along came Richmond, Va.-based nHealth. The start-up company, launched with the mission of making consumer-driven health care a reality, rescued him with a plan that kept premiums below $90,000 yearly. The plan insured his 35 employees against hospital expenses, created a $1,500 deductible for doctors’ fees and set up health savings accounts (HSAs) for employees to pay for what the health plan did not. “For most employees,” Mr. Gillispie says, “it netted out money in the pocket.”
What happened to you will be able to keep your coverage?
This bill has to be repealed and replaced with a market based solution. These provisions need to be repealed immediately. Please contact your members of Congress.
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BO doesn’t care about effectiveness. BO doesn’t care about cost. What BO does care about is that it’s now run by the government. It’s called socialized medicine..
(p.s.- it doesn’t work- see UK, Canada et. al.). When they’re really sick, they come here.