On Tuesday’s broadcast of the Fox News Channel’s “America Reports,” Rep. Raja Krishnamoorthi (D-IL) stated that the provision in the American Rescue Plan lowering the reporting threshold for payments through PayPal or Venmo to $600 is a bad idea and the threshold should be raised or at least the rule’s implementation needs to be delayed. Krishnamoorthi argued that lowering the threshold will result in people getting 1099-K forms when they really didn’t make any money and acknowledged that it’s routine to have to fix legislation like the American Rescue Plan in the years after it’s passed.
Krishnamoorthi stated, “I don’t agree with this particular rule, so I’ve actually co-sponsored legislation to radically increase the threshold. And today, I’m asking leadership to include some delay of the rule or increase in the threshold on a bipartisan basis as part of the year-end spending package, John.”
He added, “I don’t agree with it because a lot of people are going to receive a 1099-K for money which is really not taxable income. So, say that you actually got a Taylor Swift ticket somehow, miraculously, and then say that you actually resold it because you couldn’t attend a concert. Well, most likely, you didn’t have taxable income because the price at which you resold the ticket was probably lower than the price at which you purchased it. So, you actually experienced a loss. And that happens repeatedly when people sell used stuff or pre-owned stuff.”
Krishnamoorthi concluded, “Routinely, there’s legislation that gets passed and then it gets corrected in succeeding years. A good example would be the Tax Cuts and Jobs Act. A lot of my Republican colleagues and I are still trying to fix the SALT cap, which is really messed up and has raised taxes on a lot of middle-class homeowners in my district and numerous others.”
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