Yes, it gives them someone to blame for the imaginary "loss" when this abomination is cancelled.

There are a very small number of criminal underground businesses that are not declaring income, but those purchase are not made with check or credit cards, they are cash-only, no receipts. The customers buying blackmarket or illegal goods from these sketchy places are mostly not legit themselves. Mostly it is drug dealers and undocumented alien sole proprietor gardeners, not licensed legitimate long established businesses. They are not going to start filing 1099s. Maybe a few of them will though, and this will bring in an additional 10 million in income tax. That's a huge exaggeration, undoubtedly it will be less. But let's say 10 million.

Consider though the 99.999% of businesses that have always done legit business and report income who will be massively burdened by this and to process their 30 billion submitted 1099s each year is going to require new IRS personnel to the cost of way more than $10 million. In addition, a lot of companies will forgo purchases rather than have to deal with the additional paperwork. Submitting requests and filling out these forms and tracking it all to make sure you got them all is going to mean hiring more people (yay more jobs?) to handle it, but that means prices go up, or you have to lay off somewhere else. It's not stimulating the economy to hire people to do busy work at the cost of producing and earning less, it's stimulating to actually produce more and do well.

When we have a customer that needs IRS forms to be filled out with a purchase (often W-9s), it is never ever a simple request. It always comes coupled with very dense bureaucratic requirements from the other company (usually some government institution or contractor) which mean in addition to tracking and filling out forms, there is several hours of busy work, emails and phone calls because the people that demand this level of bureaucracy are like little helpless children, but very uptight ones. We have a W-9 filled out and available. This is followed by requests that they "entered it into the system and it came back wrong". Entered into what system? "The IRS validation system." IRS doesn't have that, do you mean an third party one? Did you type in the name of the business correctly? Yes. Try it again. I already did that, please mail us the W-9 form again. Two weeks later, same problem. Four weeks later, oops, they misspelled the name of the business, or the EIN, or they are using some dodgy company for validation which only has a small fraction of companies nationally. And never mind that W9s are not required for retail sales of $20 in off the shelf software as it is, that doesn't matter, it "is their policy." Likewise, every institutional purchaser is going to demand several days of work to deal with 1099s as well now for a $20 purchase, because their policy will now be to collect on ALL purchases regardless of size just in case they happen to go over that $600 limit. To manage all this, it will be approved vendors only, which will be large institutional supplier/resellers who charge ten times normal retail in order to deal with bureaucracy. What happens to tuition then. And what happens to the small companies locked out of the system. No longer will it even be an option to buy the best product or lowest price, it will be whatever the approved vendor asks.

All this burden to find hidden income from a tiny blackmarket and illegal sector that isn't going to file these forms anyway.

The software guys salivating at the chance to sell software to manage all this stupidity should be ashamed of themselves, that is pathetic. Our economy has collapsed because of greedy non-producers who siphon off value from economic activity in order to benefit themselves financially while contributing nothing of real value. This selfishness is what is destroying our country and the world.