As I reported back in June in my article, New Healthcare Bill – Myths & Misconceptions, lawmakers tacked a new 1099 reporting requirement into the HealthCare Bill. This requirement, if it holds up, will require all small businesses to start issuing 1099s to ALL of your vendors and suppliers staring in 2012 (including Staples, Verizon, YellowPages, etc.).
Obviously, this portion of the HealthCare Bill (really nice that this was actually part of a “HealthCare” Bill by the way), came under tight scrutiny and was attacked by the small business community, small business CPAs, etc.
In that same article, I predicted that this portion of the HealthCare Bill would not hold up and would be repealed sometime before 2012…
…and I was almost right!
…and then the politicians got involved!
As the attacks grew, many politicians decided to jump on the bandwagon and try to put together a repeal to the 1099 reporting requirement portion of the HealthCare Bill that they voted to pass earlier in the year. Republicans and Democrats were both on board with the plan and started drafting new bills that would repeal the 1099 reporting requirements. The Democrats were the first to get a bill on paper, however, they tried to bury some additional stipulations in this new bill, including a new tax on overseas businesses and putting an end to Grantor Retained Annuity Trusts (GRATs).
With these new stipulations, the bill failed before it even got off the ground.
Maybe one day we can live in a society where each bill and each law pertains to one specific topic so that votes can be cast based on the task at hand and not based on all the other unrelated pork barrel nonsense that gets tacked onto bills. This way, when we have situations like this where the Republicans want something repealed and the Democrats want the same thing repealed, it can just be repealed without having to decide on whether or not a 4% tax on all copies of Lost Season 3 DVDs sold in Podunk, Idaho should get earmarked to fund a work study program for 37-year old college freshmen marjoring in Agricultural Sciences with a minor in Eastern Lithuanian Studies at Rutgers University.
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Such as is being proposed by DownsizeDC’s One Subject at a Time Act: http://www.downsizedc.org/etp/campaigns/83
Great article, thanks for sharing this. I have subscribed to your RSS feed and am looking forward to reading more from you.
Keep up the good work and don’t stop posting please.
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