TaxProf Blog

Editor: Paul L. Caron
Pepperdine University School of Law

A Member of the Law Professor Blogs Network

Saturday, July 31, 2010

Dems, GOP Vie to be First to Repeal ObamaCare's 1099 Small Business Reporting Rule

Politico, Dems, GOP Maneuver on Repeal:

House Democrats proposed repealing a piece of the health care overhaul Friday, a move designed to thwart Republican efforts to do the same thing and declare an early victory in their efforts to repeal the whole law.

Democrats proposed repealing new IRS reporting requirements that small business has warned would be overly burdensome. But they attached a new tax on Americans conducting business overseas— essentially a poison pill for Republicans who are unlikely to support a new tax.

The Democrats hold the majority in the house, but it was brought up on a procedural rule requiring two-thirds support. It failed, 241-154, largely on party lines with Republicans in opposition.

It is nevertheless the first time Democrats have gone on record in support of repealing a piece of the health care law, which was passed just four months ago.

Neither party really likes the provision of the health law at issue, which would require businesses to file 1099 tax forms for all transactions with vendors that cumulatively total over $600.

Due for implementation in 2012, the 1099 provision would raise $19 billion over 10 years to pay for the health care overhaul.

http://taxprof.typepad.com/taxprof_blog/2010/07/dems-gop.html

Congressional News, Tax | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341c4eab53ef0133f2c07e8a970b

Listed below are links to weblogs that reference Dems, GOP Vie to be First to Repeal ObamaCare's 1099 Small Business Reporting Rule:

Comments

Democrats...attached a new tax on Americans conducting business overseas...

Of course the Democrats could have picked any number of things that Republicans would oppose to support the appearance of Democrats doing what's right when they really don't want to, like taxpayers paying for abortions (Oh, wait. Obamacare does that already) or taking away the secret ballot in union ratifications, but they decided on yet another increase in taxes. What a surprise! If they run out of taxes to impose, the Democrats will invent new ones!

We'll be finding out all sorts of other little surprises in the Obama/Pelosi/Reid socialized medicine act as time moves along. What a shock from a Congress that tossed together a two-thousand page bill for government to take over sixteen percent of our economy and didn't even read it before voting for its passage.

Thanks for all this hope and change.

Posted by: Woody | Jul 31, 2010 10:20:25 AM

Woody has it exactly right, if it doesn't mean killing jobs, adding taxes or more spending the Dems wouldn't even dream of bringing anything up for a vote.

Pelosi had it half right, the more you read part anyway, just the ending was slightly off:

the more you read it, the more you will hate it!

Posted by: swift boater | Jul 31, 2010 6:55:38 PM

I'm sure there are plenty of provisions like this buried in the legislation, for just this purpose. I'd even bet much of the gibberish that's there will eventually be exposed as leverage for political gain. How much paper does take to write, "All American Citizens will be provided with free primary care, prescription medication, and X number of dollars worth of major medical per year. Only citizens of the USA need apply. All others pay cash." There it is. BUT it doesn't allow for graft, does it?

Posted by: Nick Reynolds | Jul 31, 2010 6:55:58 PM

The amusing thing is that Democrats can't see that attaching an unrelated tax just proves the point the Tea Party people have been trying to make about this whole Obamacare debacle. It gives the GOP an out with voters: Dems voted for *yet another tax*, this one for no other reason than to stick it to their political opponents. How is this helpful for the Democrats? I can't see it.

Posted by: ern | Jul 31, 2010 7:23:05 PM

Is that the bill that caused Wiener to go into full melt down mode?

Posted by: Rick Caird | Jul 31, 2010 7:24:48 PM

After surviving the Jimmy Carter years I thought at the time there could be nothing worse than the 4 years of his tenure. Nearly two years into the Obama fiasco and financial disaster I know that there can be something very much worse. Obama and the Democrat Socialist Party have in a short time nearly ruined our country, our very Constitution and Bill of Rights and liberties are in peril.

Posted by: Ron Nord | Jul 31, 2010 9:28:21 PM

//Dems, GOP Vie to be First to Repeal ObamaCare's 1099 Small Business Reporting Rule//

Reminds me of the old joke.
..Why are you hitting yourself on the head?
..Because it feels so good when I stop.

Think of all the gratitude Congress will reap if this needless reporting requirement is repealed. I guess we keep voting those folks back to Congress so they will do these nice things for us.

Posted by: rick shuey | Jul 31, 2010 10:10:06 PM

How bout we just repeal the whole dadgum thing. It's garbage and it's a business and job killer.

Oh....and keep the pressure on that Donald Berwick. Regular calls to resign is a start.

Posted by: Army of Davids | Jul 31, 2010 11:03:51 PM

Please. Someone smarter than me. Explain to me why it's even allowed that we allow Congress, either house, to attach crap to bills that have nothing to do with the core legislation being considered.

Posted by: Scott M | Jul 31, 2010 11:31:54 PM

If they had read the bill in the first place and thought things through, maybe they wouldn't be in this position. Haste makes waste.

Posted by: Jared Rhoads | Aug 1, 2010 11:12:40 AM

It's really funny how we can allow government to force us to file 1099's all the time but don't even think about the converse. Why don't food stamp, SNAP, generate a 1099-GOV? Should the government give you a 1099-GOV if they pay part of your mortgage? If we don't see a little more perspctive shift pretty soon we'll be reporting the lunch money, or allowance, we give our kids while the government wards walk away without paper. Uh...do we have to report gifts to our kids?

Posted by: SenatorMark4 | Aug 1, 2010 11:43:38 AM

"Neither party really likes the provision of the health law at issue, which would require businesses to file 1099 tax forms..."

Sigh... This is our lawmaking process now - clauses which neither side in a two sided argument wants, yet which still get included. I suppose that is what happens when bills are 2000 pages long and no one reads them before voting.

Posted by: Bruce | Aug 1, 2010 12:20:04 PM

If there is a humorous point - the 1099 reporting was designed for the small guy to ensure reporting of income (which with segment of the self employed individuals was a problem). This reporting requirement focused on all transactions, so the IRS could locate all income. this was attempting to collect unreported income in segments of the economy which have very little unreported income. Sam's club, office depot, AA, etc. The administrative costs would most likely offset any additional taxes collected.

Posted by: Joe | Aug 1, 2010 3:40:50 PM

Maybe we should ALL be good little citizens and fill out 1099s for electric utilities, gas companys, grocery stores, department stores, etc. Image if 100 million families sent in 10+ 1099s each. I wonder how the IRS would like an extra billion forms?

Posted by: Charley | Aug 3, 2010 12:33:03 PM