The reason I think so many people are talking about this from what I understand is they doubled the IRS and just lowered the ceiling on transactions like this it only takes a 600 dollar transaction for a 1099 form to be generated and them to be notified when it was much higher before like 20 transactions of 600 or more or $20,000 in revenue that's a huge shift.
What they are saying is it will generate more audits and squeeze the middle class and the poor. Anyone with a small side hustle on the side to get by things like that. What they are claiming is the rich really can't get taxed anymore due to the they're knowledge of tax laws and loopholes and the fed and gov have to make money
They took a massive amount of loss first due to the pandemic and second with student loan relief and other things that are being passed. The fed makes money off of interest on loans primarily one of the biggest ones is student loans.
So investors like this guy are stating that with that loss of ability to generate revenue the fed is going to have to generate it one way or the other.
Now I'm no tax expert or financial guru so how applicable it is I don't know. But PayPal did hit me up with this so it is actually happening.
$600 of incidental income has been the threshold for 1099 for a long time, but it hasn't been enforced for selling personal items as it's about to be- I have a serious problem with the fact that they're enforcing it for 2022 didn't make much noise about it sooner. Maybe they did, but it slipped past us.
The rich are the favorite target for too many people but anyone who hates their use of the tax code should direct their anger toward Congress since that's who writes the code. You say they know the tax laws and loopholes, but most don't do their own taxes, nor would they pore over the tens of thousands of pages of the tax code- they pay people to handle this and if errors are made, the preparer pays the penalties. OTOH, some people don't want someone else to know anything about their finances because of their lack of trust. Most people don't want to know what's in the tax code- they hate the thought of doing their own taxes because it's a royal PITA, help isn't usually easy to find now (used to be- I had called the IRS ON tax day and they were very helpful) and knowing which forms are needed in their entirety can be confusing.
BTW- many of the 'loopholes' are available to everyone unless said loopholes only kick in at high income/expense levels. The rest are very accessible and people who do the 1040EZ should think about taking a bit more time, rather than doing their taxes while watching TV.
BTW- with the average IRS making over $76K/year + benefits and the government's FICA contribution, their goal of a bit more than $8 billion makes this almost pointless. The number of additional agents has been stated as 87K, right? At the $76K income, the additional FICA cost raises that to more than $81K and the simple calculated total payout will be more than $7 billion, so they make a cool billion dollars for all of the pain they're causing. According to the link, the US money supply grew by 13.1% in 2021- that adds to inflation and it seems that someone in DC hasn't considered that. THEY'RE causing a lot of the inflation, but as usual, want to blame anyone but themselves.