DCRepublican.com

When President Bush announced his economic stimulus in January, he bragged that his package was the “right size” and would “boost” the economy. It sure has led to “higher consumer spending,” but not where Bush had probably hoped. The adult pornography industry reports that has seen a huge uptick in business thanks to Bush’s package.

Of  course, this is also a great opportunity to bring back one of my favorite videos from ht

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Sadly, its one of our own that has come up with one of the most ludicrous amendments to what is already seen by many as one horrible package of legislation.

It’s none other than Senator Chuck Grassley of Iowa that has developed the language that would essentially open the door to online merchants like Ebay, Amazon, Google Checkout, etc. reporting all of their transaction activity to the government.

First of all, it’s important to note that this provision was packaged in the Housing Bill, which has absolutely nothing to do with online merchants. The provision was buried amongst 600+ pages of legislation, making it more likely to be overlooked by tired Hill staffers. For those who haven’t read the language, here it is (source):

Payment Card and Third Party Network Information Reporting. The proposal requires information reporting on payment card and third party network transactions. Payment settlement entities, including merchant acquiring banks and third party settlement organizations, or third party payment facilitators acting on their behalf, will be required to report the annual gross amount of reportable transactions to the IRS and to the participating payee. Reportable transactions include any payment card transaction and any third party network transaction. Participating payees include persons who accept a payment card as payment and third party networks who accept payment from a third party settlement organization in settlement of transactions. A payment card means any card issued pursuant to an agreement or arrangement which provides for standards and mechanisms for settling the transactions. Use of an account number or other indicia associated with a payment card will be treated in the same manner as a payment card. A de minimis exception for transactions of $10,000 or less and 200 transactions or less applies to payments by third party settlement organizations. The proposal applies to returns for calendar years beginning after December 31, 2010. Back-up withholding provisions apply to amounts paid after December 31, 2011. This proposal is estimated to raise $9.802 billion over ten years.

It’s quite clear to see the many problems that could be created if this piece of legislation was enacted.

Of course, after this was exposed, Kate Szostak, a staffer on the Banking Committee quickly tried to kill any doubts and/or concerns people had with the legislation:

“This is not a controversial provision or a new one. Republicans and Democrats on the Senate Finance Committee have supported it for months, and it has been included in the Administration’s budget proposal for years. This provision simply requires banks–not small businesses–to report sales transactions to the IRS each year and to merchants at the end of each day. It makes the tax system fair for everyone, without burdening small businesses and without putting consumers’ privacy rights at risk.”

With all due respect to Kate, this is indeed a very controversial provision that could greatly effect how business is done online.

For example, let’s say I sell 500 widgets on Ebay every month and at the end of each month, $20,000 or so is transferred into my bank account. Stop. That is basically what is going to be reported to the IRS and filed away under your EIN or SSN and it should be no surprise that they are going to be there at the end of the year waiting for you to pay taxes on it.

However, if you’re a business owner, there is much more to this equation than the IRS would be seeing. Nowhere in this reporting would Ebay or the IRS have any idea how much each of these widgets cost you. Sure, you might have had $20,000 transferred to your account, but what if you had to spend $19,500 on acquisition and shipping of the widgets?

This number has to first be deducted from the $20,000 before any accurate representation of income can be generated. When you tack on other things like operating costs, it’s even easier to see how the IRS is going to have skewed numbers.

I’m sure many of you are now asking, so what, you’ll report all of this on your tax forms and pay taxes based on that.

The reality is that even if this is the case, with the IRS having all of this data, they are going to be looking harder than ever for anyone that is cheating the system. Any discrepancy on either end could potentially throw up a red flag and lead to an audit. No matter what criteria they create, there is always going to be a discrepancy in numbers, simply because each small business operates in a different way, having different pricing structures, sales models, operating costs, exposure, etc.

With this legislation, I don’t see how the IRS would be able to operate without a major expansion, and that’s just to cover the oversight of this data. There are many other arguments that people have brought up over this legislation, including privacy concerns and other important logistics, but for some reason, some of our elected officials don’t want to bring this up for more debate and are hoping to end discussion of this in the next 48 hours.

So, that’s where we come in and help disseminate information exposing America’s #1 R.I.N.O., Senator Chuck Grassley.

Here are some other bloggers that are also covering this topic, and have made excellent posts.

http://techliberation.com/2008/06/23/senate-housing-bill-to-require-collecting-of-online-payment-information/

http://blogs.courant.com/on_background/2008/06/credit-card-tracking-slipped-i.html

http://www.infowars.com/?p=2785

http://papundits.wordpress.com/2008/06/24/housing-bailout-bill-new-provision-report

http://osispeaks.com/

http://fetchingjen.blogspot.com/

http://www.oregonconservative.com

http://www.conservativerecord.com

It looks like the Democrats decided to go a bit too far this time, trying to slip in some last minute provisions into the mortgage bailout bill that had absolutely nothing to do with mortgages. Here is just a taste, but check out the rest of the story at the link below:

“This is a provision with huge reach, and was slipped into the bill this week. Not only does it affect nearly every credit card transaction, such as Visa, MasterCard, Discover, and American Express, but the bill specifically targets payment systems like eBay’s PayPal, Amazon, and Google Checkout, that are used by many online businesses.”

read more | digg story

Eerie video of a giant panda showing up at Senator Chris Dodd’s house in DC. Looks like he had an agenda: exposing Dodd’s Countrywide Financial scandal. Watch the video!

read more | digg story

Had enough with high gas prices? Join the protest!

In related news and links, surging energy prices help drive annual cost-of-living rate rise to 4.2%.

Calculator: How long do you have to work to fill your tank? 

Map: Think your gas prices are expensive? You might be surprised.

Another great video from the folks at barelypolitical.com

Odds are, if you’re a commuter, there is one thing that is more painful these days than any traffic jam - gas prices.

Obviously, you’re not alone when it comes to resenting these extremely high fuel costs. However for most folks, it’s just assumed that there is nothing that they can do to lower these costs.

For some, people have changed their routines to make their drive times as efficient as possible. For others, they have decided to take public transportation to work instead of driving. Then there are those who simply want to avoid the stress and cost altogether and give up driving completely.

It’s not just a small handful of people who are making these various adjustments to save a buck either, just check out these statistics from CNN.com:

The Department of Transportation said Monday it had seen the sharpest monthly drop in driving since it began keeping records. In March, Americans drove 11 billion fewer miles than in March of 2007.

I have no doubt that when the data is released for April and May, the number of miles driven will continue to decline significantly.

While I think it’s great that Americans are driving less, there are many who simply can’t make these adjustments, whether that be due to location, schedule, etc. What about these people? How do they fight the pain at the pump?

The truth is, the American people DO have the ability to lobby their members of Congress to fight more aggressively to reduce the price we pay at the pump.

Just today, a new website was launched serving that very purpose - giving Americans the ability to sign a petition that urges Congress to suspend the federal gas tax, increase American oil production, and expand U.S. refineries.

If you’re tired of high gas prices, and want those you have elected to take action, you should sign this petition.

I’m confident that this petition will take off soon, and hopefully, instead of Congress spending hours questioning oil executives, they will use their power and creativity to pass legislation that eases gas prices immediately.

Here is a great post examining one Congresswoman’s mortgage problems and why she creates the perfect example of what the real problem with the housing market is.

I couldn’t have said it any better myself.

Here is a great article by Dr. Wayne Brough, discussing the implications of the Farm Bill. Click Here.

Just a taste of the article:

Farm policies in the United States continue to distort markets through government interventions that benefit farmers at the expense of consumers. Despite rhetoric to the contrary and the sentimentality of saving the family farm, the subsidies and crop programs Congress is peddling do little for the small farmer.

Amen.

Today President Bush gave an address from the Rose Garden at the White House where he held nothing back in expressing his frustration with the current Congress and their inability to work issues out, instead just resulting in using political tactics to block key programs.

Particularly, President Bush used this criticism to address the financial crisis facing the United States (courtesy of CNN.com):

“I repeatedly submitted proposal to help address the problems. Time after time, Congress chose to block them,” he said.

Bush called on Congress to send him sensible and effective bills to keep the country moving forward before taking questions from reporters.

I really hope this isn’t President Bush’s way of saying that he would hope for more bailouts of corporations and individuals who are facing financial troubles.

It was after all, President Bush who pushed hard for Congress to agree on a stimulus package, which in the opinion of many conservatives was an extremely wasteful idea that will probably have little impact on the economy.

However, in the same press conference, President Bush also went after Congress for even considering passing the Farm Bill, which has become even heavier in farm subsidies, increasing the burden on the American taxpayer.

Finally, President Bush made the effort to try and set the tone for Congress as his Presidency winds down:

Bush asked Congress to focus on four areas: energy, food prices, mortgage payments and student loans. The president urged Congress to pass legislation that would lead to more affordable and reliable energy at home.

While I give President Bush credit for calling out Congress, these directives sound almost exactly like the pitch the Democrats were giving the American people when they cleaned up shop in the 2006 elections.

Calling out Congress is extremely important when the country is in financial turmoil, but I think it’s also extremely important that when the President speaks, that he has more substance and addresses the real problems that are at hand.

Instead of telling Congress to address these issues, President Bush should have told Congress what specific things he would like to see, what he would be open to signing, and what things he isn’t going to cave in on.

This is his last term and he has absolutely nothing to lose.

I would argue that this is probably one of the few opportunities where the Republicans didn’t have to cave into the pressures of the Democrats, in fear of losing political points.

Before President Bush leaves office, I’d love for him to tell Congress that he will only support packages that are based on substance and real need for ALL Americans, not just small populations, or special interests. While it wont be the most popular action in his presidency, it will set a tone that Republicans can and will stand up to frivolous spending, and actually try and use fiscal restraint to try and get this countries economy back on track.

Bailouts, subsidies and pork-projects aren’t going to fix the economy, however prudence and cutbacks will put us on the right course.