The ObamaCare provision that would have businesses submitting 1099s to the IRS for business transactions with other entities totaling over $600 and which has those same businesses justifiably freaked-out over the resulting admin. nightmare, is getting a closer look by this current Congress. (Previous posts on how that was all going to work can be found, here).
The Senate Finance Committee Chairman (Max Baucus) said Friday that he plans to introduce a bill to repeal the 1099 tax provision in response to small business’ outcry over the provision. His office did not release the text or how the repeal would be paid for. Republicans have said the provision would likely have been one of the first ones they would try to repeal in the next Congress, when they’ll have control of the House and a larger minority in the Senate.
(italics, ours)
The 1099 provision was tucked into ObamaCare as a footnote in hopes of raising $17 billion over ten years to help pay for ObamaCare and to bolster the claim that ObamaCare was deficit-neutral.
This provision actually had the votes to get repealed back in August but Speaker Pelosi rigged the rules to require a two-thirds vote to repeal rather than a simple majority in order to both save the provision and protect Democrats voting for the repeal.
And we have never seen any justification for that $17 billion figure as that represents the amount of money American businesses are apparently bilking the federal government. So, as for paying for the repeal of this wildly unpopular provision, how about not having to hire those thousands and thousands of IRS agents needed to monitor the massive paper mill that will be created by the 1099 provision?
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3 comments:
I have been puzzling over this one. Nelson had offered an amendment to raise the limit to $5,000. It was voted down. Since we track everything on a spreadsheet at my corporation, putting stuff on 1099s is pretty easy. An expenditure of $5,000 is pretty significant for a small business, so it would be on their books, and should be pretty easy to comply with. What do they do at your place of work?
Steve
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