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  • A Bipartisan Vote on the Obamacare Road to Repeal

    Tucked away in the legislation that made Obamacare into law is a tax provision that will be a compliance nightmare for small businesses if it ever goes into effect. The provision calls for all businesses to file 1099 forms with the IRS for all transactions with other businesses over $600.

    Businesses are not like individuals. They purchase lots of items in large quantities. As a result, if the Obamacare reporting requirement goes into effect as scheduled in 2012, it would create an enormous compliance burden on businesses. Businesses would have to file millions of new forms with the IRS. Small businesses would be especially hard hit, because they do not have large accounting departments that can absorb more bureaucracy like larger businesses.

    Businesses large and small have made their position clear to Congress: Repeal this burdensome new requirement. The House of Representatives voted on a bill that would’ve done that recently but failed to pass the measure.

    The Senate is working on its own version of repealing the 1099 rule now. Senator Mike Johanns (R–NE) is leading the effort and has garnered support from Democratic Senator Blanche Lincoln (AR).

    The catch in both the House and the Senate will be how to replace the $17 billion in revenue the 1099 provision is estimated to bring in. Congress passed the 1099 rule under the mistaken belief that businesses will pay more income taxes if they report more of their transactions. In reality, the 1099 rule won’t bring in a fraction of that revenue—if any at all. This is just another example of the unrealistic offsets used to “pay for” the new health care law. All the more reason to repeal this provision—and the entire law itself.

    Posted in Economics [slideshow_deploy]

    12 Responses to A Bipartisan Vote on the Obamacare Road to Repeal

    1. Lioness, Wisconsin says:

      Ridiculous law — just like many discrete parts of the healthcare "bundle". It's as full of holes as Swiss cheese. Everyone of these specific flaws needs to be repealed. By the time that's done, there will only be a skeleton left to defund.

    2. Jill, California says:

      The 1099 provision will bring in less revenue, because all of us who are affected will need to spend more time doing useless paperwork at the expense of income-producing activities. If the folks in Congress had half a brain, they would have known this and never considered such a foolish provision.

    3. Zach, Arkansas says:

      Don't let Blanche Lincoln fool you. She is simply doing this to save her hide in November.

    4. Tom davidson, Richmo says:

      If the same requirement was applied to campaign donations of $500 or more to re-election committees, political parties, and PACs, they would soon see how onerous this requirement is. A separate 1099 for each donation!!!

    5. CB from Texas says:

      Let's just give small businesses ONE MORE reason to give it up. We are hanging on by a thread as it is, with no work to do, higher taxes and higher health costs. Truly stupid requirements like this one, that any educated businessman could have told you WOULD not and WILL not bring in any more tax dollars, are going to tip us over the wall to being on the unemployment line. Never mind the 12 employees that will be there with us because we just can't keep operating at a loss. One question: if all of the small businesses shut down, who is going to pay the taxes needed to support all of this big government?????

    6. Drew Page, IL says:

      Nothing is impossible to the guy that doesn't have to do it. Those that write these regulations into legislation have no appreciation of the time, money and effort businesses need to spend in order to comply with them. Nor do they understand or care how uncompetitive they make doing business in the U.S. Those that compiled these regulations will sniff that they are merely reasonable reporting requirements.

      Here we have a President and a Congress full of Senators and Representatives, most of whom are lawyers, who can't or won't read the full text of legislation they vote on or sign into law. They impose these absurd regulations on business that makes doing business in the United States more and more difficult and expensive. The country has gotten along just fine without this IRS reporting up to now. Businesses are suffering and laying off workers, thereby compounding the suffering on the unemployed and the government , who relied on the taxes these unemployed formerly paid. The idiots who wrote this legislation must have an instinct to tear open their own jugular veins. Worse are the fools we put in Congress to read this legislation and vote on it intelligently — and to sign it into law. These people don't give a damn about what they do, as long as somehow, they can personally benefit.

    7. Hal Vinson, Texas says:

      Remember, the number of documents filed triggers other reporting requirements and methods.

      For Non-Profits, filing over 250 documents, including 1099's, W-2's and the like, triggers the requirement for electronic filing of their annual IRS Form 990, an added cost to small Non-Profits.

      Non-Profits filing a paper Form 990, when required to file electronically, are deemed not to have filed at all, triggering penalties and potential loss of non-profit status.

    8. Ben C. Ann Arbor, MI says:

      It must be fuzzy math. The presumption is that there is 17 billion dollars worth of unreported tranactions in the US. How in the world did Harry Reid et al arrive at this figure? It must be a made up number to protray Obamacare as revenue neutral. I can't wait to hear their explanation – I need a good laugh.

    9. Pingback: Keeping the Republic

    10. Spiritof76, NH says:

      How to bring in $17B? Cut that amount from any number of departments, bureaucracies, WH budget, Congressional budget, FCC,EPA and every other useless alphabet soup. As a matter of fact. start cutting $17B a week from the federal government until the deficit is erazed.

    11. Pingback: Today in Washington - September 14, 2010 | RedState

    12. Pingback: The Uncertainty Certainty | Step Down Obama

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