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txradioguy
04-05-2011, 01:32 PM
The Senate voted overwhelmingly, 87-12, Tuesday to repeal an unpopular reporting requirement in the new health care reform bill that small business owners had said would impose a tsunami of paperwork had it gone into effect in 2012. The paperwork mandate would have required all businesses to report to the IRS each time they made payments and purchases totaling more than $600 in a calendar year, regardless of what the money was used to buy.

Sen. Mike Johanns [1], R-Neb., spear-headed the effort with seven different attempts at repeal, and, over a year's time, support grew as small businesses made their opposition known in a flurry of lobbying and public events.

"This has had a rather tortured history, if you will. We started this effort in the summer of last year," Johanns said, noting that churches and non-profits would have been caught up in the requirement, as well. "I could not be more pleased by the action of the Senate today...We'll have the 1099 reporting requirement completely and totally repealed in the next few days."

The Patient Protection and Affordable Care Act (PPACA), as the health care bill is formally known, contained the provision designed to raise revenue without raising tax rates, and removing the so-called "1099 reporting requirement," named for the IRS form which businesses would have been required to file, leaves a $19 billion hole.

Democrats, led by Senate Finance Committee Chairman Max Baucus [2], D-Mont., contended that the PPACA is already more than $100 billion in the black, according to the nonpartisan number crunchers at the Congressional Budget Office.

Regardless, the Johanns provision, which is identical to a bill already passed by the House, would pay for itself by recouping excess health care subsidies from taxpayers.

The measure now heads to the president's desk for his signature.

http://politics.blogs.foxnews.com/print/2011/04/05/congress-repeals-unpopular-tax-reporting-requirement-businesses

ColonialMarine0431
04-05-2011, 02:31 PM
I'm amazed the democrat majority Senate actually passed this.

lacarnut
04-05-2011, 02:43 PM
I'm amazed the democrat majority Senate actually passed this.

Me too. Matching revenues or cuts elsewhere had to be implemented to offset the loss of revenues that this boondoggle was supposedly going to bring in.

ColonialMarine0431
04-05-2011, 02:46 PM
I don't know if we can repeal Obamacare completely, but chipping away at it bit by bit like this is a good sign.

Novaheart
04-05-2011, 02:51 PM
I confess I didn't put any research into it, but I assumed that the 1099 thing was designed to reduce the number of people and businesses hiding income through off the books transactions and employment.

lacarnut
04-05-2011, 04:54 PM
I confess I didn't put any research into it, but I assumed that the 1099 thing was designed to reduce the number of people and businesses hiding income through off the books transactions and employment.

No. If you went to a furniture store, bought 200 dollars today, 300 dollars next month and 100 dollars in Dec., the business would have to keep a running tally and at the end of the year issue you a 1099. Or if you bought a 1 ounce gold coin from a dealer, that would trigger a 1099.

Private transactions between individuals would also fall under this law. However, guess how many would have been reported? The government will never eliminate under the table deals. However, audits can catch many of them.

fettpett
04-05-2011, 06:04 PM
I confess I didn't put any research into it, but I assumed that the 1099 thing was designed to reduce the number of people and businesses hiding income through off the books transactions and employment.

all this would do is make companies and people get around it more. it's what politician's fail to grasp, the more regulation you up on a company, the more people try and get around it, especially when there is this level of micromanagement by the Government.

This should never have made it to the bill. if Pelosi and her ilk had actually let the House read the bill and then make changes to it, this crap and other boondoggles wouldn't have made the bill.

mind you that is a completely separate issue from the bill being passed in general

Novaheart
04-05-2011, 09:01 PM
This should never have made it to the bill.

Then it would be interesting to know who put it in the bill and what he hoped to get out of it, specifically. We were told that part of the reason this bill is such a hodgepodge is because Harry Reid walked it around asking everyone what he needed to get it signed.

Madisonian
04-05-2011, 09:30 PM
The original provision in the ACA required any business that spent more than $600 with any other business for goods or services to send a 1099-misc to the business and to the IRS.

My gas is paid for by my company. I spend about $3500 annually for gas between about 5 local stations. I would have to send each of them a 1099-misc.
Over $600 aggregate at Best Buy - 1099.
Insurance companies (3 - Health, business and liability) - 1099
Business meals over $600 aggregate at any restaurant - 1099

Any entity that does $600 or more with my company would have to send my company a 1099.

This was potentially a bookkeeping nightmare so that the goobermint could collect about 17 billion is "unreported transaction income". Never mind that it would have cost businesses more than that for accountant, book keeper and compliance cost, but since when were they ever concerned that it cost 5 dollars to collect 3.

ColonialMarine0431
04-05-2011, 09:35 PM
Never mind that it would have cost businesses more than that for accountant, book keeper and compliance cost, but since when were they ever concerned that it cost 5 dollars to collect 3.

This so called "administration" is bereft of ANY business sense. As career egg-head academic types and beurocrats, the Accounting 101 concept of "Don't waste a dollar finding a dime" is uncomprehensible to them.

lacarnut
04-05-2011, 10:03 PM
The original provision in the ACA required any business that spent more than $600 with any other business for goods or services to send a 1099-misc to the business and to the IRS.

My gas is paid for by my company. I spend about $3500 annually for gas between about 5 local stations. I would have to send each of them a 1099-misc.
Over $600 aggregate at Best Buy - 1099.
Insurance companies (3 - Health, business and liability) - 1099
Business meals over $600 aggregate at any restaurant - 1099

Any entity that does $600 or more with my company would have to send my company a 1099.

This was potentially a bookkeeping nightmare so that the goobermint could collect about 17 billion is "unreported transaction income". Never mind that it would have cost businesses more than that for accountant, book keeper and compliance cost, but since when were they ever concerned that it cost 5 dollars to collect 3.

I seriously doubt that the IRS would have collected anywhere near that figure in extra revenues. Look what happened to the luxury tax many years ago. The rich quit buying expensive cars, yachts, diamonds and furs. It was a complete failure and drove many northeastern boat builders out of business. Every time punitive taxes are initiated, there are some smart cookies out there that can out fox the IRS legally.

fettpett
04-05-2011, 11:42 PM
Besides it was like a 3rd or 4th tax anyway, utter bullshit and glad that it's gone or will be soon