"credit card companies would have to withhold 28 percent of receipts for businesses that do not provide a taxpayer ID number."

Wow is this an incredibly stupid idea. This would crush so many small businesses who drop ship over the internet, mine being one of them. Just the concept that a little under 50 percent of my revenue is pre-tax profit as it is, any time my cash flow got thin and I had to process returns, this would shut me down permanently and the big corporations who I am currently able to compete with would be the benefactors.

Once again, republicans showing their true colors. Stomp on the little guys and give it to the big guys and the big guys move it offshore to avoid taxes.

They might as well call this bill the "Internet Small Business Termination Act".

Let's look at the unintended consequences of this act. Small business will just refuse to accept credit cards. "Sorry, can't accept cards!" This is a good way to put a major dent in credit card companies, which in turn cascades into other consequences. I will simply refuse to deal with credit cards. If the government wants more income, it should encourage economic growth, not poison it.

Let's look at the unintended consequences of this act... I will simply refuse to deal with credit cards - Charles

...and an end to credit cards usage, a return to living by one's means, is bad how?

Good thing I insist on getting paid in cash, not that Federal Reserve Notes are worth much these days.

If this catches on at the state level, it could enforce those consumer use taxes (you know, when you don't pay sales tax on something shipped to you from out of state because that merchant doesn't have a nexus in your state?).

Some people believe "you don't have to pay sales tax on something shipped to you from out of state......"

Yes you do, but it was unenforceable, I mean theoretically enforceable by matching SSN to credit card number, but legally unenforceable, because who knew what you bought from whom from a mail order catalog, the Internet, and so on?

Unenforceable, perhaps, but what if?

I do remit my five percent of Virginia non-food sales tax because my purchases easily exceed $100 a year. When I was a Maryland resident I did the same, plus less tax on food which was not taxed. When I was a West Virginia resident I did the same on non-food at the 6% rate.

Mom was certain our neighbors were shopping over the line in Maryland and not telling anyone..... they needed to, the mom was on Food Stamps.

Perhaps the best thing states can do is agree on a uniform rate for nonfood so merchants can charge that for Internet transactions only. It is better than getting nothing.

In Socio-nazi Amerika, the credit machine processes you!

When is the Bush regime going to realize that they are the lamest ducks ever to quack at 1600 Pennsylvania Avenue. We want nothing to do with their current policies; yet they continue to dig their hole of epic failure that much deeper and away from public interest. Fly away lame ducks!

Perhaps they should apply for an EIN online? It is free, and takes about five minutes.

http://www.irs.gov/businesses/small/article/0,,id=102767,00.html

You all realize that credit card companies take 3 to 5 percent of gross charges right off the top (that includes sales tax included in the charge). But I bet anything that this proposed rule doesn't take that into account. Small businesses would be hurt for sure, especially if their credit card processors withhold 28% for invalid TINs. This is an extremely wrong-headed proposal.

How many businesses get licensed to operate by using the SS # of the owner. Most get the tax ID from the state and that is what they are asking for. If you are using your SS # then I think you are probably not operating as a licensed business at all.

Has anyone seen the Aaron Russo film "Freedom to Fascism"? If not, I suggest you do. The IRS has no right to tax you for your labor. There is no law on the books that requires you to pay an income tax. There have even been large rewards for anyone who could find the supposed law...so far those rewards remain uncollected.

In this day and age what kind of idiot does it take to use their SSN as their business tax ID#?

Are there still people out there using their SSN on their driver's license too?

I think they deserve what their ignorance brings them; Darwin at work!

Working for the IRS needs to made so dangerous that no one will report for work!

Lovely, just what we need. More nosey Government sticking its nose where it doesnt belong.

JT
www.an0n.mirrorz.com

The government continues to demonstrate it owns you and it views you as nothing more than a revenue source it can drain energy from. Pay and obey.

I am saddened that our country has become fixated on taxation so they can have carte blanche for whatever; does anyone remember the principles our country was founded upon? Our leadership continues to show it's arrogance by ignoring this countries people and their needs. Instead their only focus is blatantly how to get more money thru taxation. Is our country (our people) not worth spending the time to work on what we need so badly - Jobs, better pay, health care, etc. These things should not be impossible tasks and it doesn't take a rocket scientist to figure out that when our people prosper, the necessary revenue for our country will follow. Our country had better wake up when they go to the polls and choose someone that has a clue and cares enough to work for our country, not owned by big business and self interest. Is it too much to ask for a genuine leader?