Don't get me wrong, I've been outraged by the practice of concealing unrelated bits of legislation inside various bills for years, but to say that this is worse than war is truly an exaggeration. Major annoyance, yes, but still quite a bit better than being shot.
On the other hand, this is a pretty big deal, and your reply doesn't justify it. Yes, not everyone "is" a business, but everyone relies on the economy every day. Adding a not insignificant overhead to the companies that bring you food, water, electricity, etc. makes those items more expensive. Also, increasing overhead in businesses makes it harder to start businesses, which is sort of relevant given that we're on YC news.
I think that's the key of it right there. The worst the IRS could do if you failed to file the 1099s is... force you to file the 1099s. The horror.
Even if that were not the case, it would hardly be a 1984 scenario, especially given that there are no criminal penalties for failing to file the 1099s. That's pretty absurdly embarrassing hyperbole that makes you sound like you came from DailyKos or something. The war on drugs is more of a 1984 scenario than requiring 1099s is, especially since it comes with widespread criminal penalties.