<p>StealthyRoid writes "The Senate mortgage bill proposed by Sen. Chris Dodd (who was the recipient of a sweetheart deal on his mortgage from Countrywide, one of the beneficiaries of the bill) includes an attempt to sneak into law a requirement that all electronic payment processors send detailed transaction data to the federal government. The proposed law contains an exception for businesses with fewer than 200 transactions or a total value less than $10,000. Quoting FreedomWorks chairman Dick Armey (former House majority leader) from the article: 'This is a provision with astonishing reach, and it was slipped into the bill just this week. Not only does it affect nearly every credit card transaction in America, such as Visa, MasterCard, Discover, and American Express, but the bill specifically targets payment systems like eBay's PayPal, Amazon, and Google Checkout that are used by many small online businesses. The privacy implications for America's small businesses are breathtaking.'" --- This is the same bill that contains a controversial provision to fingerprint all mortgage brokers. </p>
<p>(Read Original Article - Via Slashdot: Your Rights Online.)</p>

<p>A bill under consideration in Congress to bail out homeowners affected by the mortgage crisis enjoys strong bipartisan support, despite a recent White House veto threat. But the free-market advocacy group FreedomWorks is drawing attention to a provision introduced on the Senate side that has little to do with housing loans: a measure that would require credit card companies and electronic payment processors, such as PayPal, to file aggregate transaction reports with the IRS listing their total annual payments to individual merchants who receive more than $10,000 and conduct more than 200 transactions each year. </p>
<p>The reporting provision was introduced without debate as a revenue offset measure, meant to defray the costs of the housing bailout. According to the Senate's summary, the measure is projected to raise some $9.8 billion in revenue over 10 years by increasing tax compliance and encouraging merchants to accurately report their income. </p>
<p>During hearings earlier this year before the House Small Business Committee, however, Committee Chair Nydia Velásquez complained that such reporting requirements create "significant technical and financial challenges for banks and entrepreneurs alike." Projections of tax compliance gains, she said, were "built on the incorrect premise that electronic payments foreshadow profits. The reality is quite different for most small businesses: Electronic transactions bear little relationship to actual income, especially when chargebacks, merchant discounts, and other fees are accounted for. The result is that even careful compliance by entrepreneurs could lead to costly IRS audits." </p>
<p>Representatives for small business associations opposed to the requirements observed, for instance, that many businesses took deposits via credit card that did not constitute true income. Some also worried that the IRS would use the data to target to audit businesses that accepted an unusual number of electronic or credit card transfers for their industry. </p>
<p> Privacy groups harbor their own objections. David Sohn of the Center for Democracy and Technology testified that the reporting requirements would force transaction middlemen to retain information like tax ID numbers—which in the case of many small businesses will simply be the owner's Social Security Number—that the firms otherwise would discard. He also warned that an aggregate reporting requirement could easily transform into a demand for more detailed data. </p>
<p>The bill is expected to be kicked back to the House for a straight up-or-down vote sometime next week. That, according to CDT's Ari Schwartz, is "bad process," as it means the reporting measure is unlikely to be subject to much close consideration. The popular housing relief bill is expected to pass by a wide margin, despite the president's veto threat. "If you're going to add something like this,<br />
says Schwartz, "at least have some independent discussion on the floor." </p>

<p>Source: Freedomworks.org</p>
<p>Washington, DC - Hidden deep in Senator Christopher Dodd’s 630-page Senate housing legislation is a sweeping provision that affects the privacy and operation of nearly all of America’s small businesses. The provision, which was added by the bill’s managers without debate this week, would require the nation’s payment systems to track, aggregate, and report information on nearly every electronic transaction to the federal government.</p>
<p>Call Congress and Tell Them to Oppose The eBay Reporting Provision in the Housing Bill: 1-866-928-3035<br />
FreedomWorks Chairman Dick Armey commented: “This is a provision with astonishing reach, and it was slipped into the bill just this week. Not only does it affect nearly every credit card transaction in America, such as Visa, MasterCard, Discover, and American Express, but the bill specifically targets payment systems like eBay’s PayPal, Amazon, and Google Checkout that are used by many small online businesses. The privacy implications for America’s small businesses are breathtaking.”</p>
<p>“Privacy groups like the Center for Democracy and Technology and small business organizations like the NFIB sharply criticized this idea when it first appeared earlier this year. What is the federal government’s purpose with this kind of detailed data? How will this database be secured, and who will have access? Many small proprietors use their Social Security number as their tax ID. How will their privacy be protected? What compliance costs will this impose on businesses? Why is Sen. Chris Dodd putting this provision in a housing bailout bill? The bill also includes the creation of a new national fingerprint registry for mortgage brokers.</p>
<p>“At a time when concerns about both identity theft and government spying are paramount, Congress wants to create a new honey pot of private data that includes Social Security numbers. This bill reduces privacy across America’s payment processing systems and treats every American small business or eBay power seller like a criminal on parole by requiring an unprecedented level of reporting to the federal government. This outrageous idea is another reason to delay the housing bailout legislation so that Senators and the public at large have time to examine its full implications.”</p>
<p>From the Senate Bill Summary:</p>
<p>Payment Card and Third Party Network Information Reporting. The proposal requires information reporting on payment card and third party network transactions. Payment settlement entities, including merchant acquiring banks and third party settlement organizations, or third party payment facilitators acting on their behalf, will be required to report the annual gross amount of reportable transactions to the IRS and to the participating payee. Reportable transactions include any payment card transaction and any third party network transaction. Participating payees include persons who accept a payment card as payment and third party networks who accept payment from a third party settlement organization in settlement of transactions. A payment card means any card issued pursuant to an agreement or arrangement which provides for standards and mechanisms for settling the transactions. Use of an account number or other indicia associated with a payment card will be treated in the same manner as a payment card. A de minimis exception for transactions of $10,000 or less and 200 transactions or less applies to payments by third party settlement organizations. The proposal applies to returns for calendar years beginning after December 31, 2010. Back-up withholding provisions apply to amounts paid after December 31, 2011. This proposal is estimated to raise $9.802 billion over ten years.</p>

<p>Is this true? Would Chris Dodd really support something like this?</p>
<p>Washington, D.C. - Hidden deep in Senator Christopher Dodd’s 630-page Senate housing legislation is a sweeping provision that affects the privacy and operation of nearly all of America’s small businesses. The provision, which was added by the bill’s managers without debate this week, would require the nation’s payment systems to track, aggregate, and report information on nearly every electronic transaction to the federal government.</p>
<p>FreedomWorks Chairman Dick Armey commented: “This is a provision with astonishing reach, and it was slipped into the bill just this week. Not only does it affect nearly every credit card transaction in America, such as Visa, MasterCard, Discover, and American Express, but the bill specifically targets payment systems like eBay’s PayPal, Amazon, and Google Checkout that are used by many small online businesses. The privacy implications for America’s small businesses are breathtaking.”</p>

<p>Senator Chriss Dodd a former democratic presidental contender inserted language into the Senate mortgage bailout bill that would require credit card merchants to submit transactions to the Feds.</p>
<p>See article. http://www.freedomworks.org/newsroom/press_template.php?press_id=2571</p>
<p>I have two basic problems with this. </p>
<p>First, shame on Senator Dodd who used the amendment process to insert an amendment that is completely unrelated to the mortgage bailout bill currently up for debate and a vote. I believe this is completely antithetical to the founding father’s concepts of fair, open, and honest debate. </p>
<p>If Senator Dodd believes that merchants should be required to submit transaction records to the federal government, he is more than welcome to introduce a bill to that effect.</p>
<p>However, any elected official who uses the amendment process to surreptitiously insert an unrelated provision should be ashamed of himself/herself for engaging in such egregious circumvention of democratic principles Americans expect from their leaders.</p>
<p>Second I am stunned that Senator Dodd who championed himself as a defender of civil liberties inserted an amendment that tramples on the very civil liberties and privacy he has led us to believe he defends. </p>
<p>I believe Senator Dodd should have to explain to the American people why he felt it is necessary and appropriate to insert this amendment into the mortgage bailout bill.</p>
<p>What do you think?</p>

<p>…from Freedomworks:</p>
<p>
--------------------------------------------------------------------------------</p>
<p>Contact: Adam Brandon<br />
Phone: 202-942-7698<br />
Email: abrandon@freedomworks.org </p>
<p>
--------------------------------------------------------------------------------</p>
<p>Senate Housing Bill Requires eBay, Amazon, Google, and All Credit Card Companies to Report Transactions to the Government</p>
<p>Broad, invasive provision touches nearly every aspect of American commerce. </p>
<p>Washington, DC - Hidden deep in Senator Christopher Dodd’s 630-page Senate housing legislation is a sweeping provision that affects the privacy and operation of nearly all of America’s small businesses. The provision, which was added by the bill’s managers without debate this week, would require the nation’s payment systems to track, aggregate, and report information on nearly every electronic transaction to the federal government. </p>
<p>FreedomWorks Chairman Dick Armey commented:</p>
<p>This is a provision with astonishing reach, and it was slipped into the bill just this week. Not only does it affect nearly every credit card transaction in America, such as Visa, MasterCard, Discover, and American Express, but the bill specifically targets payment systems like eBay’s PayPal, Amazon, and Google Checkout that are used by many small online businesses. The privacy implications for America’s small businesses are breathtaking. </p>
<p>Privacy groups like the Center for Democracy and Technology and small business organizations like the NFIB sharply criticized this idea when it first appeared earlier this year. What is the federal government’s purpose with this kind of detailed data? How will this database be secured, and who will have access? Many small proprietors use their Social Security number as their tax ID. How will their privacy be protected? What compliance costs will this impose on businesses? Why is Sen. Chris Dodd putting this provision in a housing bailout bill? The bill also includes the creation of a new national fingerprint registry for mortgage brokers. </p>
<p>At a time when concerns about both identity theft and government spying are paramount, Congress wants to create a new honey pot of private data that includes Social Security numbers. This bill reduces privacy across America’s payment processing systems and treats every American small business or eBay power seller like a criminal on parole by requiring an unprecedented level of reporting to the federal government. This outrageous idea is another reason to delay the housing bailout legislation so that Senators and the public at large have time to examine its full implications.</p>
<p>From the Senate Bill Summary:</p>
<p>Payment Card and Third Party Network Information Reporting. The proposal requires information reporting on payment card and third party network transactions. Payment settlement entities, including merchant acquiring banks and third party settlement organizations, or third party payment facilitators acting on their behalf, will be required to report the annual gross amount of reportable transactions to the IRS and to the participating payee. Reportable transactions include any payment card transaction and any third party network transaction. Participating payees include persons who accept a payment card as payment and third party networks who accept payment from a third party settlement organization in settlement of transactions. A payment card means any card issued pursuant to an agreement or arrangement which provides for standards and mechanisms for settling the transactions. Use of an account number or other indicia associated with a payment card will be treated in the same manner as a payment card. A de minimis exception for transactions of $10,000 or less and 200 transactions or less applies to payments by third party settlement organizations. The proposal applies to returns for calendar years beginning after December 31, 2010. Back-up withholding provisions apply to amounts paid after December 31, 2011. This proposal is estimated to raise $9.802 billion over ten years.</p>

<p>Via freedomworks.org</p>
<p>Broad, invasive provision touches nearly every aspect of American commerce. </p>
<p>Contact:</p>
<p>Adam Brandon<br />
Phone:</p>
<p>(202) 942-7698<br />
Email: abrandon@freedomworks.org</p>
<p>
--------------------------------------------------------------------------------<br />
Washington, D.C.-</p>
<p>Hidden deep in Senator Christopher Dodd’s 630-page Senate housing legislation is a sweeping provision that affects the privacy and operation of nearly all of America’s small businesses. The provision, which was added by the bill’s managers without debate this week, would require the nation’s payment systems to track, aggregate, and report information on nearly every electronic transaction to the federal government.</p>
<p>FreedomWorks Chairman Dick Armey commented: “This is a provision with astonishing reach, and it was slipped into the bill just this week. Not only does it affect nearly every credit card transaction in America, such as Visa, MasterCard, Discover, and American Express, but the bill specifically targets payment systems like eBay’s PayPal, Amazon, and Google Checkout that are used by many small online businesses. The privacy implications for America’s small businesses are breathtaking.”</p>
<p>“Privacy groups like the Center for Democracy and Technology and small business organizations like the NFIB sharply criticized this idea when it first appeared earlier this year. What is the federal government’s purpose with this kind of detailed data? How will this database be secured, and who will have access? Many small proprietors use their Social Security number as their tax ID. How will their privacy be protected? What compliance costs will this impose on businesses? Why is Sen. Chris Dodd putting this provision in a housing bailout bill? The bill also includes the creation of a new national fingerprint registry for mortgage brokers.</p>
<p>“At a time when concerns about both identity theft and government spying are paramount, Congress wants to create a new honey pot of private data that includes Social Security numbers. This bill reduces privacy across America’s payment processing systems and treats every American small business or eBay power seller like a criminal on parole by requiring an unprecedented level of reporting to the federal government. This outrageous idea is another reason to delay the housing bailout legislation so that Senators and the public at large have time to examine its full implications.”</p>
<p>From the Senate Bill Summary:</p>
<p>Payment Card and Third Party Network Information Reporting. The proposal requires information reporting on payment card and third party network transactions. Payment settlement entities, including merchant acquiring banks and third party settlement organizations, or third party payment facilitators acting on their behalf, will be required to report the annual gross amount of reportable transactions to the IRS and to the participating payee. Reportable transactions include any payment card transaction and any third party network transaction. Participating payees include persons who accept a payment card as payment and third party networks who accept payment from a third party settlement organization in settlement of transactions. A payment card means any card issued pursuant to an agreement or arrangement which provides for standards and mechanisms for settling the transactions. Use of an account number or other indicia associated with a payment card will be treated in the same manner as a payment card. A de minimis exception for transactions of $10,000 or less and 200 transactions or less applies to payments by third party settlement organizations. The proposal applies to returns for calendar years beginning after December 31, 2010. Back-up withholding provisions apply to amounts paid after December 31, 2011. This proposal is estimated to raise $9.802 billion over ten years.</p>

<p>Washington, DC - Hidden deep in Senator Christopher Dodd’s 630-page Senate housing legislation is a sweeping provision that affects the privacy and operation of nearly all of America’s small businesses. The provision, which was added by the bill’s managers without debate this week, would require the nation’s payment systems to track, aggregate, and report information on nearly every electronic transaction to the federal government.</p>
<p>Call Congress and Tell Them to Oppose The eBay Reporting Provision in the Housing Bill: 1-866-928-3035<br />
FreedomWorks Chairman Dick Armey commented: “This is a provision with astonishing reach, and it was slipped into the bill just this week. Not only does it affect nearly every credit card transaction in America, such as Visa, MasterCard, Discover, and American Express, but the bill specifically targets payment systems like eBay’s PayPal, Amazon, and Google Checkout that are used by many small online businesses. The privacy implications for America’s small businesses are breathtaking.”</p>
<p>“Privacy groups like the Center for Democracy and Technology and small business organizations like the NFIB sharply criticized this idea when it first appeared earlier this year. What is the federal government’s purpose with this kind of detailed data? How will this database be secured, and who will have access? Many small proprietors use their Social Security number as their tax ID. How will their privacy be protected? What compliance costs will this impose on businesses? Why is Sen. Chris Dodd putting this provision in a housing bailout bill? The bill also includes the creation of a new national fingerprint registry for mortgage brokers.</p>
<p>“At a time when concerns about both identity theft and government spying are paramount, Congress wants to create a new honey pot of private data that includes Social Security numbers. This bill reduces privacy across America’s payment processing systems and treats every American small business or eBay power seller like a criminal on parole by requiring an unprecedented level of reporting to the federal government. This outrageous idea is another reason to delay the housing bailout legislation so that Senators and the public at large have time to examine its full implications.”</p>
<p>From the Senate Bill Summary:</p>
<p>Payment Card and Third Party Network Information Reporting. The proposal requires information reporting on payment card and third party network transactions. Payment settlement entities, including merchant acquiring banks and third party settlement organizations, or third party payment facilitators acting on their behalf, will be required to report the annual gross amount of reportable transactions to the IRS and to the participating payee. Reportable transactions include any payment card transaction and any third party network transaction. Participating payees include persons who accept a payment card as payment and third party networks who accept payment from a third party settlement organization in settlement of transactions. A payment card means any card issued pursuant to an agreement or arrangement which provides for standards and mechanisms for settling the transactions. Use of an account number or other indicia associated with a payment card will be treated in the same manner as a payment card. A de minimis exception for transactions of $10,000 or less and 200 transactions or less applies to payments by third party settlement organizations. The proposal applies to returns for calendar years beginning after December 31, 2010. Back-up withholding provisions apply to amounts paid after December 31, 2011. This proposal is estimated to raise $9.802 billion over ten years.</p>
<p>From FreedomWorks.org</p>