Tax reporting threshold buried in ‘American Rescue Plan’ squeezing online sellers of secondhand goods

Buried in the “American Rescue Plan” of 2021 that Democrats love to cite and Republicans have yet to effectively attack is an initiative that only increases the power of the federal government.

Ever bought or sold something from a place like Etsy? The Biden regime is about to make that type of commerce a thing of the past – unless you’re willing to pay for the privilege.

Nice business you got here; would be a shame if something happened to it …

That’s just one example, and business owner Melissa Williams is now having the screws put to her from the Biden muscle machine. She used to just buy and sell clothing for children. Considering how quickly children grow in and out of clothing, it seemed like a sensible business. Even in fiction, it’s successful. Rent-A-Swag from “Parks and Recreation” was a roaring success.

But as The Hill reported, certain new tax laws may cause Williams to close up shop.

“If I couldn’t do what I do and buy hand-me-downs from other sellers, then we’re headed to big box department stores, especially where I live,” said Williams, a stay-at-home mom from Walla Walla, Washington

A revised portion of the behemoth bill of $1.9 trillion requires sellers to report transactions over third-party networks that exceed $600. Before it was amended, the line of demarcation was $20,000.

Now, small business owners like Williams must fill-out a 1099-K form for what would normally be daily transactions. Previously she said of her business endeavor, “It really helps us financially, being able to sell my kids’ used clothing and then turn around and buy their next size up,” Williams told The Hill.

No more apparently, and as such, she has joined forces with online retailers including Kidizen, eBay, Etsy and Poshmark with hopes of convincing the overbearing Biden regime and their allies in Congress to reset the threshold back to the original $20,000.

In fact, lot of small business owners were unaware of the new, stifling changes. A survey taken in February found that 47 percent of American resellers polled in a February 2022 survey said they weren’t aware of the new restrictions, according to the Coalition for 1099-K Fairness.

In addition to the aforementioned sellers, that includes Airbnb, Goldin, Mercari, OfferUp, PayPal, Reverb and Tradesy.

Others agree with Williams and her business model.

“If you’re someone like me, you’re finding this stuff in your closet when you clean out for spring, or you’ve got stuff in your garage,” Renée Morin, chief sustainability officer for eBay, told the outlet.

“You want to participate online and put these goods into e-commerce and avoid sending them to a landfill,” Morin said.

While certain counter-offensives to the bill are in the works – supposedly – it has yet to come to fruition.

The Hill wrote, “Multiple Republican-sponsored bills, meanwhile, call for a return to the $20,000 threshold: Rep. Carol Miller’s (W.Va.) Saving Gig Economy Taxpayers Act (HR.3425), Sen. Bill Hagerty’s (Tenn.) SNOOP Act of 2022 (S.3546) and a third bill (S.948) proposed by Sen. Rick Scott (Fla.)

But talk is cheap without any institutional power, and it does little to assuage Williams. She retains hope that Congress will reconsider and revert back to the original $20,000 threshold written in the bill.

“I’d know that I would never have to be worried or question that,” she said. “There’s no way I would ever reach that — not even close, doing what I’m doing.”

“We’re not trying to weasel our way out of paying taxes,” Williams added. “We’re trying to dress our kids.”

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