The Palmetto Insider

The blog of the South Carolina Policy Council

Posts Tagged ‘senate

No, We’re not joking. Senate fails to repeal 1099 Tax. Again.

leave a comment »

In what is consistently becoming a tragic, comedy of errors, the Senate failed once again to repeal the 1099 provision of Obamacare.

In case you missed it, this little snafu in the legislation will require all businesses to file a 1099 form for anyone paid $600 or more. So if you’re a self-employed individual and you purchase a $900 macbook for work, you’ll be filing a 1099 to Apple and the government.

This is despite the fact that small business communities have strongly voiced their opposition to 1099 provision and that Democrats have acknowledged three weeks ago that the provision would curb jobs creation.

But thankfully (sort of), this measure has been widely criticized by members of both sides of the aisle. President Obama has even called for this provision’s removal. But still, rhetoric itself is not enough. Actions should prove louder than words.

Again, did anybody read the legislation? Shouldn’t this have been the kind of thing that was caught before the bill was passed in a measure of pomp-and-circumstance? If legislators had caught it before passing the legislation, it could have been stricken from the bill as easily as a student erases a mistake on his history test.

But now, we’re stuck having to trust the political establishment that is notorious for failing to act – even when there is consensus approval.

Proof in point was Monday’s vote – which actually passed 61-35, but needed 67 votes to become part of an unrelated food bill.

If you listen to senators discuss the matter, they’d have us put all our trust and faith in them to fix it before the measure takes effect in 2012. “We have plenty of time,” said Senate Finance Chair Max Baucus.

The 1099 measure will supposedly raise $17 billion over 10 years to help pay for Obamacare.

The fact that Democrats felt the need to use this measure as a way to drum up revenue for the healthcare bill is proof that they were really scraping at the bottom of the barrel to find funding for their massive, trillion dollar expansion of government control over healthcare. Perhaps, they think tax revenue is more important than jobs.

Advertisements

Written by Geoff Pallay

December 1, 2010 at 12:12 pm

Posted in Taxes

Tagged with