IRTA Sends Letter To USA Today
(The following letter to the editor of
USA Today was sent last week on letterhead from the International
Reciprocal Trade Association.)
Dear Mr. Hillkirk:
We are responding to address issues that were brought forward in the
February 26, 2009, article titled �For Work, That Will Cost One
Laptop� by Emily Bazar.
The article was primarily focused on one-to-one barter activities
between individuals. One-to-one bartering, or ancient barter, was
man�s first method of commerce and is still widely practiced today.
As Professor Staiger said, it does not significantly contribute to
the nation�s or world�s GDP.
We would like to point out that there is a Modern Trade and Barter
Industry that facilitates 12 billion dollars in business-to-business
barter transactions worldwide annually. Last year over 250,000
participating businesses in the U.S. utilized this process to earn
additional revenues and profits.
Modern Trade and Barter companies in the U.S. are considered third
party record keepers pursuant to the Tax Equity and Fair
Responsibility Act (TEFRA) of 1982 and as such are required to make
IRS 1099-B filings verifying the gross amount of barter sales for
their participating members. Clearly, the Modern Trade and Barter
Industry is hardly an �underground economy� and it does indeed make
a significant contribution to the nation�s GDP.
With the current economic conditions, businesses are searching for
innovative ways to capitalize and earn additional revenues, and they
are finding these benefits by utilizing the services provided by the
Modern Trade and Barter Industry. Right now the industry is
experiencing a major increase in barter transactions and
applications for membership.
In our view the Modern Trade and Barter Industry is poised to
provide a significant element in the economic recovery by supplying
business capital that will lead to job creation and increases in
production and consumption.
IRTA is a non-profit organization now in its thirtieth year of
operation. IRTA regulates and provides standards for companies who
supply businesses with Modern Trade and Barter services. For more
information regarding IRTA�s mission and goals please access our web
David Wallach, President
Ron Whitney, Director