That slippery slope's a bitch. Better start writing congress critters.


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Senate Bill Requires eBay, Amazon, Google, All Credit Card Companies to Report Transactions
FreedomWorks ^ | 6/19/08 | Adam Brandon


Broad, invasive provision touches nearly every aspect of American commerce.
WASHINGTON, DC - Hidden deep in Senator Christopher Dodd's 630-page Senate housing legislation is a sweeping provision that affects the privacy and operation of nearly all of America’s small businesses. The provision, which was added by the bill's managers without debate this week, would require the nation's payment systems to track, aggregate, and report information on nearly every electronic transaction to the federal government.

FreedomWorks Chairman Dick Armey commented: "This is a provision with astonishing reach, and it was slipped into the bill just this week. Not only does it affect nearly every credit card transaction in America, 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 small online businesses. The privacy implications for America's small businesses are breathtaking."

"Privacy groups like the Center for Democracy and Technology and small business organizations like the NFIB sharply criticized this idea when it first appeared earlier this year. What is the federal government's purpose with this kind of detailed data? How will this database be secured, and who will have access? Many small proprietors use their Social Security number as their tax ID. How will their privacy be protected? What compliance costs will this impose on businesses? Why is Sen. Chris Dodd putting this provision in a housing bailout bill? The bill also includes the creation of a new national fingerprint registry for mortgage brokers.

"At a time when concerns about both identity theft and government spying are paramount, Congress wants to create a new honey pot of private data that includes Social Security numbers. This bill reduces privacy across America's payment processing systems and treats every American small business or eBay power seller like a criminal on parole by requiring an unprecedented level of reporting to the federal government. This outrageous idea is another reason to delay the housing bailout legislation so that Senators and the public at large have time to examine its full implications."

From the Senate Bill Summary:

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.

To your average lurker;

Well, we know smokers have been forecasting this ever since a few states started going back and collecting sales tax for on-line tobacco purchases.

In some cases, they went back years, and the sum added up to many thousands of dollars.

We've been warning people they're next, a lot of what is being done to tobacco users is just a precursor, or test bed, if you will, to other actions that will be taken by state and federal governments.

Why, you ask? Because, it seems that most state governments are flat broke, and the fed isn't far behind.

They need revenue, and by allowing the floodgates to be opened on tobacco tax on-line collections, we knew it was opening the door for ALL on-line tax collection.

Stop your bitching. You WERE warned. You didn't listen, allowed the demonization and outrageous taxation of smokers to continue,(thinking only we would carry this burden) but, soon, everyone will get to play this game.

Slippery slope, meet average Joe.

Hope you like your new pet monster.

Now, how about doing something about it?

Can you imagine the size of the government's computer installations to capture, collate, and sort this information? Together with the electronic communications of all of us, these computers will be raising the temperature of the planet all on their own.

The problem for the government is the fact that a growing percentage of citizens are not covered by payroll systems and deducting taxes. The government lives on cash flow. Payroll tax deductions are due immediately, the actual tax is due on April 15th.

The next eBay will be a barter system.

Bruce, I think you're right.

President Bush said yesterday that he will veto this bill, but he did not cite the privacy concerns as part of his rationale.

http://www.cqpolitics.com/wmspage.cfm?parm1=5&docID=cqmidday-000002901034