Socialism has a price tag, and the American Rescue Plan Act of 2021 is making eBay, Mercari, Bonanza, Etsy, Poshmark and Amazon sellers pay for it.
For over a year, we were bombarded on Facebook, Twitter, and news media channels with populists Socialism Propaganda. Legitimate discussions about the economy, taxes, small business were silenced by intentional censorship, lies and tagging those speaking transparently about the American Rescue Plan as racists to silence them. Welcome to 2021, the American Age of Propaganda and Racial Finger Pointing.
Republicans and former president Trump warned about the content included in the American Rescue Plan Act of 2021, as being full of unnecessary expenses, like bailing out that unneeded over budget Speed Rail that no one in California voted for in the first place, sending billions of money to states that ruined their economies by bad over reaching and constitutional violating policies, money to every non-citizen squatting in America illegally, etc. Foul! They cried, only to be tagged as racists anti-American's and to help shut them down from legitimate public discord.
No Republicans voted for the ARPA (American Rescue Plan Act), only Democrats did. That should of been a major indication, that it would be an anti-capitalist act, pro socialism act. But no one cared, we all just went about our business and lives as usual posting meme to Twitter and wishing that a friend on Facebook would actually pick up the phone and call, or invite us over for social distancing night.
What is most egregious, or at least should be for those of us who sell online to survive, is the changes to the laws for requirements of reporting income and being forced to turn over social security numbers, photo id's and addresses to a marketplace.
In 2022, The American Rescue Plan Act eliminates the protections that have always existed for those selling online making under $20,000 a year with at least 200 sales transactions. Under the democrats law, that threshold becomes $600 and all transactions requirements were eliminated.
Additionally, in 2021, the IRS under the guidance of the democrat administration and congress, made everyone who sells over $400 on any marketplace within a year, a "Gig economy, Independent Contractor". This means that they are essentially deemed a business and required to report any sale over $400 to the IRS, and required to pay self-employment taxes too.
It's genuinely unreasonable to require, someone selling an iphone on eBay for $400 and a couple of pairs of used shoes, to document all of their expenses, all of their sales, file a schedule-C, IRS profit and loss statement, provide a social security card number, photo ID and home address to a marketplace so they can issue a 1099K for every seller.
This is a -$19,400 change in what has been the standard, before an individual had to stress out about business laws, and keeping a file of documents, worry about being audited, and dealing with the horrendous tax laws that those who actually are small businesses have had to deal with each year when they do their taxes.
It is especially a slap in the face of financial recovery for those in states like California, who forced small businesses and people selling online, out of business for over a year.
Randy Dreammaker of SellerThink, discusses 10 Ways the American Rescue Plan Act of 2021 will impact everyone who sells on literally any online marketplace in America, beginning January 1, 2022 in this video.
Here are a few sources of information in addition to the discussion in the video you may be interested in reading. One thing not mentioned in the video, is that Mercari, Ebay, Poshmark, OfferUp and Etsy have formed a coalition, intended on attempting to influence and persuade those in government in revoking or amending the section applying to those of us who sell online. Never before have these companies come together, so that should suggest how major and potentially devastating these changes to the law are.
The coalition to protect America's small sellers.
(eBay, Mercari, Poshmark, Etsy, Offerup)
http://www.protectsmallsellers.org
Intuit Response to American Rescue Plan
https://ttlc.intuit.com/community/tax-credits-deductions/discussion/new-1099k-tax-law/00/2067836
IRS Manage Taxes for Your Gig Work
https://www.irs.gov/businesses/small-businesses-self-employed/manage-taxes-for-your-gig-work
10 Ways American Rescue Plan 2021 Harms Online Marketplace Sellers
https://www.randydreammaker.com/2021/05/10-ways-american-rescue-plan-2021-harms.html