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Originally posted by crimvelvet
reply to post by burdman30ott6
Package sizes haven't decreased...
You just have not paid attention.
Originally posted by VonDoomen
reply to post by mnemeth1
No i do, but like I said, these 2 items FLUCTUATE THE MOST. So you can't use food as an economic indicator.
I was just talking to my professor about this 40 minutes ago.
edit on 2/3/2011 by VonDoomen because: (no reason given)
Howveer, when economist measure the CPI they don't include food and energy since they fluctuate a lot. so I hope people dont worry to much
...the new 1099 form could create a huge paper tsunami at the IRS. At least 38 million taxpayers will be subject to the new requirement, including 26 million who run sole proprietorships, two million farming businesses and one million charities,...
Olson also says that “the IRS has authority to impose monetary penalties against businesses that fail to file information reports,” adding that “the new volume of information reports could exacerbate under-assessment of penalties in some cases and over-assessment of penalties in others.”
Olson also said: "In our view, it is highly likely that the IRS will improperly[..]ess penalties that it must abate later, after great expenditure of taxpayer and IRS time and effort."
...And then there are other ugly side effects. Start with reporting errors. Someone sells your small business a laptop for $600. Today, you don’t have to issue a 1099 to that person because the IRS realizes not only that these transactions count in the millions, but often mistakes are made about the correct amount to report on the form.
The seller often makes mistakes deducting from that $600 his cost of goods to sell that laptop -- prorating payments to a distributor, office overhead, gas costs to go pick it up. You see how crazy this can get.
Next, the small businesses will have to collect from the laptop seller his Social Security or TIN to complete the 1099 form. What if a vendor fails to furnish a correct TIN? The small business is required by law to calculate and then impose back-up withholding at the rate of 28% of the purchase price.
It gets worse. In that event, under the law, “the small business must prepare and file Form 945, Annual Return of Withheld Federal Income Tax, and make federal tax deposits at an authorized institution on a prescribed schedule,” to comply with the 1099 law, Olson says.
If the small business doesn’t do that? It gets slapped with a penalty.
So say you paid just $200 for the $600 laptop. Say you get in a fight with your laptop seller because he won’t give you his Social Security number due to privacy concerns, or he simply gives you the wrong Social Security number. Then you’ll have to start filing federal forms to do backup withholding for $168. Wouldn’t that make you feel like you shouldn’t pay the full purchase price?
“Failure to withhold an amount generally results in liability for that amount,” TAO Olson says, who acknowledges that “back-up withholding may be impracticable, because a business already may have paid the full price at the point of sale before learning that the TIN was incorrect.”
TAO Olson also notes this TIN fight could hurt the economy, especially in this scenario. “A vendor may simply refuse to sell good to any purchaser that refuses to pay the full purchase price,” Olson says. “Such an outcome could significantly impair the normal course of commerce. No business should have to choose between compliance with back-up withholding and losing access to vendors on the one hand, and noncompliance while keeping vendor access on the other hand.”
What if your vendors are not computerized to track customer purchases, what if they are not up to speed? Wouldn’t you be inclined to drop them? Wouldn’t that in turn put other small businesses out of work?
And get this -- if a small business makes individual purchases of $600 or more from at least 250 vendors during a calendar year, it must also by law file forms 1099 electronically to the IRS. That’s even more costly, because the small business would have “to pay a per-report fee charged by an e-file service provider,” Olson says.
And what happens if you want to return the item? Aren’t there millions more returns of items at the level of $600?
“The goods market is subject to a high rate of returned items that result in refunds to the purchaser,” TAO Olson notes.
Say your small business wants to return the laptop. But you both already filed 1099 forms for the purchase. You have to file more federal forms showing the transaction was undone.
And what if someone erroneously pumps out a 1099 form that says you sold them a laptop, when you didn’t, and the IRS matches that form to find out you did not report income on your tax return?
The IRS then issues a so-called “CP 2000 “notice of underreported income. That’s basically an IRS form letter explaining to you that the 1099 income information in IRS files does not match entries on your tax return and advises you to respond. At this point, you’re stuck, you’ll “have to prove a negative,” TAO Olson says.
And that means more bureaucracy. “Consequently, the IRS would have to develop a process for verifying and using information reports to est@blish an accurate amount of gross proceeds,” Olson says....
i will get you in touch with my professor. She has a PHD in economics. And we went over EXACTLY what I said TODAY.
I WILL REPEAT AGAIN, THE PRICE OF FOOD AND ENERGY FLUCTUATE THE MOST OFTEN OUT OF ANY OTHER COMMODITY. ECONOMIST DONT EVEN INCLUDE IT WHEN MEASURING THE CPI, BECAUSE IT THROWS OFF THE CPI TO MUCH, WETHER GOOD OR BAD.
China is dumping the dollar
To me, our leaders don't want us to be self-sufficient either.
The entire global scheme is killing us. The solution, short-term as it may be, is to provide for ourselves in the immediate future. Not think about profits on a global basis. Not, continue on the global path of destruction.
Hmm...I'm still convinced it's all one, big, well-orchestrated plan. Somehow it all is speeding up towards a well-hyped up date too.
Again, this is a rule used by economist, not specifically by my professor, so character attacks on her are unneccessary, considering your more than likely less educated than her on the topic!
And we're talking the economy, not weather. these two systems are regulated by vastly different forces.
International discussions have been going on for a while and no consensus has been reached yet. I do think an international currency is the best way out for all concerned, but it needs to be based on a strong foundation free of corruption if it is to work, not pushed through the back door like the Euro. Maybe the world can get there one day, maybe it can't. The future is uncertain.
The Germans have demanded that gold bullion held in US custodial accounts be returned to their owners, with physical gold shipped back to Germany. The Dubai bankers have demanded that gold bullion held in London custodial accounts be returned to their owners, with physical gold shipped back to the w:st="on"United Arab Emirates. They are following the hired German counsel. In all likelihood, neither US nor London sources are in possession of all the gold held in those custodial accounts, since at least some of it probably was improperly leased. By that is meant without owner permission or knowledge. So an uproar could come soon with charges of gold bullion theft, or at least failure of fiduciary responsibility. Theft is a simpler description. news.goldseek.com...
Hong Kong is pulling all its physical gold holdings from depositories in London, transferring them to a high-security depository newly built at the city's airport, in a move that won praise from local traders Thursday. www.marketwatch.com...