Back in March, House Speaker Nancy Pelosi (D-California), when speaking about what was in the then pending ObamaCare plan said, “Congress has to pass the bill so you can find out what’s in it, away from the fog of controversy.” We see.  Vote now, read later.  Then much later begin to understand the mess that these inside the beltway power addicts have created.

Well folks, your friendly Congress persons did just that.  They (almost exclusively Democrats) passed the bill.  Since that time all Americans have been finding out just what is in it. And in short they do not like it and are liking even less these Democratic politicians (or any career politician of any party) that foisted this 2,400 page monstrosity upon the citizenry.

Now, we find a little noticed revenue provision, one of about 15 in the bill, which was essentially “overlooked” (guess that was too much for these pols to read) places enormous bureaucratic tax reporting burdens on all businesses.  At present a large number of Democrats are j0ining with Republicans in calling for repeal of this onerous tax provision in the new health care law.

The theory was that in order to improve compliance with tax laws, businesses would be required to file a 1099 tax form identifying anyone to whom they pay $600 or more for goods or merchandise in a year. Businesses will also have to send copies of the form to their vendors, suppliers and contractors.    Under the law, businesses will be required to report purchases of items like office equipment, food and bottled water, gasoline, lumber and plumbing supplies if payments to any vendor in the course of a year total at least $600. They will, in many cases, also have to report payments for things like travel and telephone and Internet service.  The annual reports must include the vendor’s address and taxpayer identification number.  In other words, if you buy more than $600 a year in gas from the corner station, you have file a 1099 for your payments to them and report it to the IRS.  Does anyone have time for this nonsense?

Understandably, businesses are denouncing the requirement.  Even the national taxpayer advocate at the Internal Revenue Service, Nina E. Olson, said the reporting burden might “turn out to be disproportionate as compared with any resulting improvement in tax compliance.”

Republicans want a full repeal. In a recent speech, the House Republican leader, Representative John A. Boehner of Ohio, said the “1099 mandate” showed how the health care law could “wreak havoc on employers and entrepreneurs.” Republicans also see this as just one example of  the intrusive role the I.R.S. will play in enforcing the health care law, including its requirement for most Americans to carry insurance.

In the end, we can see that tax policy and tax reform are linked to health reform (as is immigration reform as we have posted on previously).  In the end, we have believed that all Congress accomplished was to set up a system of reduced benefits for Medicare and increased fees and taxes to find a way to subsidize health insurance for the variously estimated 30 or so million without coverage, many of whom choose to be without coverage.  We are no fans of the health insurance industry, but saddling American citizens and businesses with onerous taxes and reporting requirements is not the way to go . . . obi jo and jomaxx

Many Push for Repeal of Tax Provision in Health Law – http://www.nytimes.com/2010/09/12/health/policy/12health.html?_r=1&emc=tnt&tntemail0=y

Movement to Repeal ObamaCare Tax Requirement Gains Momentum – http://www.thenewamerican.com/index.php/usnews/health-care/4584-movement-to-repeal-obamacare-tax-requirement-gains-momentum

Democrats join GOP in bid to repeal payment reports – http://www.newsobserver.com/2010/09/12/676676/democrats-join-gop-in-bid-to-repeal.html

Health care reform bill summary: powerful tax bombs, delayed fuses – http://www.csmonitor.com/Business/Tax-VOX/2010/0323/Health-care-reform-bill-summary-powerful-tax-bombs-delayed-fuses

Josten: Repeal the 1099 Reporting Mandate – http://www.rollcall.com/news/49737-1.html

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