Illiquidity dangers - Italy lowers cash transaction limits.

[Daal]

Quote from nutmeg:

I don't know if this is on or off but the annoying part is it is on the table, maybe to test the reaction.

Congress talks in billions and now trillions and we have to deal with reporting 10k cash transactions and maybe $600 transaction, pennies in the scheme of things yet somehow this is very important.

My guess is that they will raise that $600 limit, a lot. Otherwise small businesses would just get toasted

 

[morganist]

Quote from ASusilovic:

Explain what this measure has to do with" illiquidity" ????

That is exactly what I was thinking.

I thought perhaps he meant there were issues with the limitations of money supply and that they were preventing people from spending too much with cash due to a limited number of notes. But I don't think that is what he meant.

 

[moarla]

its only about taxes nothing else. If someone cant understand italian, interpretations could be wrong, so it happens to ZH.

 

[Arnie]

Quote from Daal:

Is this for real?I remember Henry Paulson going to congress and saying this measure was considered extremely costly and unworkable and they decided to scrap it

An until-now unnoticed provision of the new health care overhaul law could change the way U.S. businesses—including freelance workers—prepare for tax day, causing an avalanche of additional recordkeeping and reporting.

According to Section 9006 of the 2,409-page Patient Protection and Affordable Care Act, beginning on January 1, 2012 all businesses will have to issue 1099 tax forms not just to contractors but to any individual or corporation from which they buy more than $600 in goods or services in a tax year. Currently 1099s need only be issued to individuals, not corporations.

The requirement will now include items such as shipping charges, hotel bills, and equipment purchases, all currently exempt from 1099 reporting.

While the notion of sending a tax form to Costco for every large purchase may seem absurd to small business owners, that's not the worst of it, says Marianne Couch, a principal with the Cokola Tax Group in Michigan and former chairwoman of the IRS Information Reporting Program Advisory Committee's subcommittee on small business and self-employed tax issues.

Full story here........

http://www.heartland.org/healthpoli..._Provision_1099s_Could_Quintuple_in_2012.html

 

[ASusilovic]

Quote from moarla:

its only about taxes nothing else. If someone cant understand italian, interpretations could be wrong, so it happens to ZH.

Maybe ZH should broaden its "educational horizon"...

 

[C6H12O6]

Quote from zdreg:

it has nothing to do with the decline of the Euro or that Italy is bankrupt.
the sun rises in the evening.

Oh boy, now Italy is bankrupt because ZeroHedge and other propaganda crap&gold permabull who can't understand the difference between a limit on the cash transactions and a limit on the cash withdrawings say so.
Thanks man, that's a really good info, LOL

 

[TGregg]

If one reads the article instead of just going apeshit, one would see this text in the opening paragraph:

. . Reducing the ceiling on cash transactions, which currently stands at 12,500 euros. .

They are lowering the limit from 12.5k euros to 5k.

 

[luckyluciano]

These measures are long overdue. I don't know about everyone else but I am sick and tired and disgusted of paying into a tax system where many who work the cash system have the better lifestyles. I am tired and angry for having to pay for these freeloaders. I have literally paid millions in taxes and continue to bust my chops to get ahead where clients I know snicker and tell me they paid $6,000 only and the live in 5,000 sq ft homes and driving convertible benzes and pay golf 3-5 days a week.