Dems won’t repeal 1099 provision in ObamaCare

posted at 12:45 pm on July 31, 2010 by Ed Morrissey

The bad news: as I predicted yesterday, the bipartisan effort to repeal the ObamaCare provision that requires companies to create 1099 forms for every business-to-business transaction has run aground on the shoals of Pay-Go.  The good news: four months after the bill passed, the Associated Press has caught up to the story:

Tucked into the new health care law is a requirement that could become a paperwork nightmare for nearly 40 million businesses.

They must file tax forms for every vendor that sells them more than $600 in goods.

The goal is to prevent vendors from underreporting their income to the Internal Revenue Service. The government must think vendors are omitting a lot because the filing requirement is estimated to bring in $19 billion over the next decade.

Er, maybe the AP could have asked that question a few months ago.  Three months ago, Cato’s Chris Edwards had not only identified the provision, but the potential scope of the problem.  It would have been even more helpful to have had a debate on this provision earlier than that — oh, say, before Congress passed ObamaCare and Barack Obama signed it into law.

Instead, Democrats now need to either find new revenue to replace the $19 billion or make a commensurate amount of cuts, thanks to their Pay-Go rule and their no-deficit pledge for ObamaCare.  Guess which approach they took?

Republicans want to repeal the filing requirement and pay for it by changing other parts of the new health care law, a strategy that Democratic leaders won’t support. Democrats want to repeal the filing requirement and pay for it by raising taxes on international corporations and limiting taxpayers’ ability to use special trusts to avoid gifts taxes. Republicans won’t support that.

The House rejected the Democratic bill Friday after Democratic leaders brought it up under a procedure that requires a two-thirds majority for approval. The vote was 241-154, with nearly all Democrats voting in favor of the bill and nearly all Republicans opposed.

And guess who’s fault is that, according to Democrats?

“Despite all of their rhetoric about the need to eliminate this reporting requirement, Republicans walked away from small businesses when it mattered most,” said Rep. Sander Levin, D-Mich., chairman of the tax-writing House Ways and Means Committee.

No, Republicans refused to raise taxes on businesses in order to rescue Democratic chestnuts from the fire.  Business didn’t create this problem; Democrats did by passing a bill without proper debate, and without having a clue how its provisions would hamstring the private sector in red tape.  And let’s not forget that at least in the House, Democrats can pass anything they like, with or without GOP assistance.

Levin can toss blame until he turns blue from the effort, but this debacle belongs to Levin, Pelosi, the Democrats, and Barack Obama.  They have been hoisted with their own Pay-Go petard.


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“Despite all of their rhetoric about the need to eliminate this reporting requirement, Republicans walked away from small businesses when it mattered most,”

So, Sander, who put the piece of crap into the bill to begin with? Republicans?

notropis on July 31, 2010 at 12:49 PM

Somehow, I really doubt that $19 billion figure. Sounds like wishful thinking/creative accounting by the dems.

LASue on July 31, 2010 at 12:52 PM

One more step toward North Korean-style governance.

I suppose it’s time to start talking to vendors to find ways to work things out under the table. Barter system here we come.

Bishop on July 31, 2010 at 12:52 PM

Obamacare NEEDS TO BE REPEALED. COMPLETELY.

Kini on July 31, 2010 at 12:53 PM

I don’t know what this exposes more fully: the illusion of pay-go (which applies only when Ms. Pelosi desires) or the falsity of revenue estimates. NO WAY does this massive paperwork requirement generate $19 billion to the federal treasury. The revenue estimate does not pass the smell test, but was required to make the huge package appear to be “revenue neutral” (to the U.S. government).

chaswv on July 31, 2010 at 12:53 PM

Didn’t Democrats already vote for this provision, by voting for ObamaCare? And now they want to remove it and want to blame Republicans because they can’t get it done without another job-killing measure. Amazing.

BKeyser on July 31, 2010 at 12:54 PM

But Obamacare is sooo GOOD!!

And the Democratic leadership wants to run on all the GOOD THINGS it will do…. because it is the wisdom of the GODS of CONGRESS that makes it so GOOD.

Just watch out for those feet of clay.

ajacksonian on July 31, 2010 at 12:54 PM

This provision will be a nightmare for my company.

ladyingray on July 31, 2010 at 12:55 PM

Dem talking point:

Republicans are refusing to accept any responsibility for provisions in a law they all voted against.

BobMbx on July 31, 2010 at 12:56 PM

This provision will be a nightmare for my company.

ladyingray on July 31, 2010 at 12:55 PM

I remember when the first round of “enhanced” 1099s came out. My company struggled to comply under threat of penalty, but the STATE GOVERNMENT (and various municipalities) were essentially granted a quiet exemption to allow them more time to comply!

chaswv on July 31, 2010 at 12:58 PM

NO WAY does this massive paperwork requirement generate $19 billion to the federal treasury. The revenue estimate does not pass the smell test, but was required to make the huge package appear to be “revenue neutral” (to the U.S. government).

chaswv on July 31, 2010 at 12:53 PM

I’ll go a step further: Not only will it NOT generate the 19 billion, it will cut revenues, because a lot of small businesses that are currently paying taxes will collapse under the weight of the added accounting costs, and go under. Law of unintended consequences, anyone?

iurockhead on July 31, 2010 at 1:01 PM

I remember when the first round of “enhanced” 1099s came out. My company struggled to comply under threat of penalty, but the STATE GOVERNMENT (and various municipalities) were essentially granted a quiet exemption to allow them more time to comply!

chaswv on July 31, 2010 at 12:58 PM

I don’t know how many vendors we have (tens of thousands?), and I’m pretty sure the vast majority are over $600.00

ladyingray on July 31, 2010 at 1:02 PM

As a small business owner I will say that this is going to be a nightmare. I do use contractors for labor and I 1099 all of them, but I also use places like Hess, Chevron, Staples, WalMart, Shell, Office Max, etc., on an almost daily basis.

If I have to hire a clerk just to calculate what is paid to every gas station, retail office outlet, restaurant, hotel, car rental, supply outlet? Fuggit.

Key West Reader on July 31, 2010 at 1:02 PM

Instead, Democrats now need to either find new revenue to replace the $19 billion or make a commensurate amount of cuts, thanks to their Pay-Go rule and their no-deficit pledge for ObamaCare.

Funny how congress never worries about how businesses and individuals are going to pay for all of this.

Repeal of this provision isn’t going to “cost” $19 billion anyway because as usual, the estimate is based on the assumption of full compliance and no change in business behavior in reaction to these requirements.

Moreover, it doesn’t figure in the loss of jobs and economic activity that will result from this nonsense, which will also result in lower revenues.

In short, this is an argument that is completely divorced from economic reality and is really about state power, not money.

RadClown on July 31, 2010 at 1:03 PM

Law of unintended consequences, anyone?

iurockhead on July 31, 2010 at 1:01 PM

FIFY, all this is planned. Democrats don’t have a bowel movement without a plan to use it against us.

Holger on July 31, 2010 at 1:03 PM

Oh, another thing: Will small businesses now have to report what they pay for telephone service, cell phones, internet, rent, and other ancillary services?

And, does this mean that every insurance company has to 1099 every single vendor and provider of things such as injections, bloodwork, mammograms, diagnostics, private physician charges, record copy services, radiology services, oncology ancillary charges?

This is Obama, working to shut you down.

Key West Reader on July 31, 2010 at 1:05 PM

The $19 Billion makes no difference anyway. ALL the numbers in ObamaCare are made up.

GarandFan on July 31, 2010 at 1:06 PM

I’ll go a step further: Not only will it NOT generate the 19 billion, it will cut revenues, because a lot of small businesses that are currently paying taxes will collapse under the weight of the added accounting costs, and go under. Law of unintended consequences, anyone?

iurockhead on July 31, 2010 at 1:01 PM

I’ll go further those that it does not drive under will simply at the end of the day stop paying taxes and go black market. It really is becoming easier to aviod paying all taxes then it is to follow the tax code.

unseen on July 31, 2010 at 1:06 PM

We’re headed towards a cash economy!

phillypolitics on July 31, 2010 at 1:07 PM

Cash and barter economy!

phillypolitics on July 31, 2010 at 1:09 PM

Levin can toss blame until he turns blue from the effort, but this debacle belongs to Levin, Pelosi, the Democrats, and Barack Obama. They have been hoisted with their own Pay-Go petard.

Actually Ed, they haven’t…all they have are some stupid lost political smiley-face points. My employer however (and the hundreds of thousands) of other small businesses have been “hoisted”.

SgtSVJones on July 31, 2010 at 1:09 PM

Hey, DNC! If Obamacare is oh so good, then name me five Democrats who would be more than willing to be under it right now!

OK, I’ll make it easier, name me four Democrats.

OK, three.

How about just one?

Hello? DNC? Anyone there?

pilamaye on July 31, 2010 at 1:12 PM

Obamacare NEEDS TO BE REPEALED. COMPLETELY.

Kini on July 31, 2010 at 12:53 PM

+ a Trillion
The ONLY way out of the quagmire

txmomof6 on July 31, 2010 at 1:13 PM

We’re headed towards a cash economy!

phillypolitics on July 31, 2010 at 1:07 PM

Cash and barter economy!

phillypolitics on July 31, 2010 at 1:09 PM

Only if you have gold, silver or copper….”cash” is not going to be of any value soon too….remember? Bartering, that will probably be it.

sicoit on July 31, 2010 at 1:13 PM

This bill was always a measure to wipe out independent small businesses. REmember, it was drafted from some idiot in a prison cell, Mr. Creamer is the author of the health care bill that is designed to drive a stake through the heart of our Capitalist society.

Robert Creamer is married to Jan Schakowsky The woman who announced that the purpose of the health care reform was to put private companies out of business.

Robert Creamer is a convicted felon.

Key West Reader on July 31, 2010 at 1:13 PM

Democrats don’t have a bowel movement without a plan to use it against us.

Holger on July 31, 2010 at 1:03 PM

See “David Corn”.

Del Dolemonte on July 31, 2010 at 1:14 PM

It creates some make-work clerical jobs. The equivalent of hiring someone to dig holes one day and fill them up the next day.

RBMN on July 31, 2010 at 1:15 PM

As my dearly departed Mother used to say “Save your pennies, they might be worth more in the future”. Amen to that.

sicoit on July 31, 2010 at 1:16 PM

This provision will go down in Jan 2011 – I hope and pray. It’s likely the Repubs will have control of the House, perhaps not the Senate. But the Senate will have a different flavor. Even if Chuck Shumer is Majority Leader, they will have a much smaller advantage, and some of the Dems likely to be elected will be closer to the center than those in charge now. Call me an optimist.

humdinger on July 31, 2010 at 1:18 PM

I still haven’t figured out what this 1099 provision is doing in the health care bill in the first place. The deception of Dems never ceases to amaze me.

KS Rex on July 31, 2010 at 1:19 PM

Is this for every transaction over $600 or for every vendor for which the aggregate transactions total more than $600?

Skandia Recluse on July 31, 2010 at 1:19 PM

They need to cut $1.5 trillion per year to close the deficit, and they cannot find $19 billion to cut. Instead, they want to increase taxes somewhere else for this 19 billion.

We are so boned with these bozos in power.

GnuBreed on July 31, 2010 at 1:22 PM

My prediction? “Clearing houses” or “Vendor Brokers” (for lack of a better term) will start popping up like crazy. Need widgets, staples, vehicles, machinery, paperclips? Acme Industries will do all of your ordering for you, you pay Acme (plus a 15-20% premium) to handle all those pesky 1099s, and you, in turn, pay Acme and issue one 1099 to them.

Chewy the Lab on July 31, 2010 at 1:22 PM

And what if everybody says………… No!

We just won’t do it?

golfmann on July 31, 2010 at 1:23 PM

That’s the second time I’ve heard of the “do something good X, but pay for it by doing something heinous Y…then put it through on a 2/3 vote so it can’t be fixed and blame it on Republicans when it fails” gambit.

Is it too subtle for the American people, given that the MSM is providing a chorus? We’ll find out.

cthulhu on July 31, 2010 at 1:23 PM

Is this for every transaction over $600 or for every vendor for which the aggregate transactions total more than $600?

Skandia Recluse on July 31, 2010 at 1:19 PM

Both.

RadClown on July 31, 2010 at 1:23 PM

Obamacare NEEDS TO BE REPEALED. COMPLETELY.

Kini on July 31, 2010 at 12:53 PM

Won’t happen until at least early 2013.
Assume that Repubs take the House and Senate. Owama is still in the WH until 2013 at least and would veto. And Repubs won’t have the votes to override.
The litigation route will take a long time.

Amendment X on July 31, 2010 at 1:25 PM

As far as compliance goes, the last time I checked it was expensive to not comply but there were no penalties to over-comply. So, I’m envisioning something like a 2-part check system — cut a payment, make out a 1099 on the carbon-copy. Send in a couple of thousand per business, let the IRS sort ‘em out.

cthulhu on July 31, 2010 at 1:27 PM

Is this for every transaction over $600 or for every vendor for which the aggregate transactions total more than $600?

Skandia Recluse on July 31, 2010 at 1:19 PM

Both.

RadClown on July 31, 2010 at 1:23 PM

[expletive deleted]
It should be obvious that the IRS will have to hire a lot of people to tabulate all that data, and compare it to the income reported by all those businesses (which was the stated purpose of the legislation). This is in addition to all those people who will be needed to verify that everyone has health insurance, and that the coverage meets the federal mandated specifics.

Skandia Recluse on July 31, 2010 at 1:33 PM

This is the first step toward an enforcement scheme for a VAT tax. They want to be able to tax every one of those transactions next for ‘deficit reduction’.

Jeff2161 on July 31, 2010 at 1:34 PM

So if a small home run LLC with only the owner working/runing it, pays another company for a mailing list and mail service they have to file a 1099 for that transaction if it hits the magic $600? Or that LLC buys a new computer or printer etc for business use, same thing?

aikidoka on July 31, 2010 at 1:35 PM

….and no one has even mentioned that 1099′s are the most error ridden portion of tax filings. Add in the complications of returned merchandise, rebates and reimbursements.

There are also going to be massive errors driven by lack of knowledge about the structures of various businesses. You’ve got sole-proprietors and franchisees. Many national corporations are divided into regional or state divisions for either practical or regulatory reasons.

2nd Ammendment Mother on July 31, 2010 at 1:35 PM

This is in addition to all those people who will be needed to verify that everyone has health insurance, and that the coverage meets the federal mandated specifics.

Skandia Recluse on July 31, 2010 at 1:33 PM

It’s a JOBS* provision.

* Jokes Over, Better Squeal

Jeff2161 on July 31, 2010 at 1:37 PM

Won’t happen until at least early 2013.
Assume that Repubs take the House and Senate. Owama is still in the WH until 2013 at least and would veto. And Repubs won’t have the votes to override.
The litigation route will take a long time.

Amendment X on July 31, 2010 at 1:25 PM

All the more reason to change the majorities of both the House and Senate in 2010. Do not Fund Obamacare, then Repeal it in 2012.

Keep the pressure up.

Kini on July 31, 2010 at 1:37 PM

They really are scared using this 2/3 trick repeatedly.

lizzie beth on July 31, 2010 at 1:38 PM

Well, the good news is that this mistake illustrates fully the problem of government these days.

AnninCA on July 31, 2010 at 1:38 PM

So if a small home run LLC with only the owner working/runing it, pays another company for a mailing list and mail service they have to file a 1099 for that transaction if it hits the magic $600? Or that LLC buys a new computer or printer etc for business use, same thing?

aikidoka on July 31, 2010 at 1:35 PM

That means that if your small home run LLC buys $600 of toilet paper over the course of a year, you will be issuing a 1099 to your toilet paper vendor. Large purchases are easy, it’s the small ones that are going to kill small business owners.

2nd Ammendment Mother on July 31, 2010 at 1:40 PM

“Despite all of their rhetoric about the need to eliminate this reporting requirement, Republicans walked away from small businesses when it mattered most,” said Rep. Sander Levin, D-Mich., chairman of the tax-writing House Ways and Means Committee.

Hmm… that has a familiar ring to it…

Oh yeah…

But Assange shot back Friday that if the names of any Afghan informants were identified in the WikiLeaks documents, the U.S. military has only itself to blame for what he said would be a “disgraceful” lapse in security by allowing easy accessibility to such material.

Yup… The Democrats love the I’m sorry I beat you… but you make me do it… argument…

Skywise on July 31, 2010 at 1:40 PM

It sure be very clear that the intent of Obama and the democrat party is to destroy the private sector which to date, they have been doing a fine job of it. Obamacare will not only destroy the best health system in the world but they also want to destroy the Insurance Companies. This 1099 requirement is going to cripple most small businesses. One would have to ask himself- WHY? Answer should be clear- to destroy. Obama and the entire democrat party will only be happy when the USA joins the rest of the Third World Countries, where only the ruling class lives well.

flintstone on July 31, 2010 at 1:45 PM

We’re headed towards a cash economy!

Cash and barter economy!
phillypolitics on July 31, 2010 at 1:09 PM

We’re already there. Those of you who live in urban/suburban areas aren’t observing it as much yet, but the backwoods folk and farmers are way ahead of you.

listens2glenn on July 31, 2010 at 1:47 PM

That means that if your small home run LLC buys $600 of toilet paper over the course of a year, you will be issuing a 1099 to your toilet paper vendor. Large purchases are easy, it’s the small ones that are going to kill small business owners.

2nd Ammendment Mother on July 31, 2010 at 1:40 PM

Sounds like a disincentive for claiming business expenses and thereby raising taxes.

aikidoka on July 31, 2010 at 1:48 PM

Somehow, I really doubt that $19 billion figure. Sounds like wishful thinking/creative accounting by the dems.

LASue on July 31, 2010 at 12:52 PM

Of course it is, it will only increase cost of doing business and actually might decrease actual tax revenue as it will help drive the small companies out of business. It’s just more BS from the Democrats, they need to be removed from power and banned from controlling anything.

whbates on July 31, 2010 at 1:48 PM

Back when he signed the most recent unemployment benefits extension, Obama said,

“Small businesses are the engine of job growth, and measures to cut their taxes and make lending available should not be held hostage to partisan tactics like those that unconscionably held up unemployment insurance.”

Of course, by “tactics” he means using Pay Go to insist costs are covered. Funny how Pay Go gets so much Dem support when it fits in with their plans–and so little when it doesn’t.

Dee2008 on July 31, 2010 at 1:54 PM

Imagine, $600 in stamps in one fiscal year by a business, 1099 to the Post office, 1099 to the local gas station if you use one for about 12 fillups for a typical SUV.

It will be a nightmare. I expect Office Depot and those kind of companies to tally the purchases under their “work life rewards” program and maybe self report the 1099 as a courtesy to that small business, but not everyone is participating in that program (has great cash rebate cards, love the program).

On the flip side, I deal with someone on a business level that hides behind his own Schedule C enterprise (think it is a S Corp)to AVOID getting 1099′s from people who pay him consulting fees. One of these days, he is going to anger me beyond my rational mind and I will probably turn his tax ID into the IRS Whistleblower just to get him audited. I am sure he under-reports more than half his revenue. He is panicking over this new tax provision. He makes me laugh, the only silver lining from this ugly dark cloud this horrible Congress has foisted on our economy.

karenhasfreedom on July 31, 2010 at 1:56 PM

United Airlines sells millions of tickets every year used by business travelers. Every one of those tickets over $600 – which is pretty much every ticket bought last minute – will have to have a 1099 sent to United.

United will have to hire hundreds of people to process all these 1099s. United will then take the cost of hiring these people and raise ticket prices.

Now take that same inefficiency and assign it to every chain where business people eat, every rental car, every taxi company, every golf course.

The only business I see that will benefit is paper product companies as there will suddenly be a need for billions of new pieces of paper for all the 1099s out there.

angryed on July 31, 2010 at 2:00 PM

Sounds like a disincentive for claiming business expenses and thereby raising taxes.

aikidoka on July 31, 2010 at 1:48 PM

And hence the $19B in new taxes claimed by Pelosi.

angryed on July 31, 2010 at 2:02 PM

Quickbooks will probably experience a huge increase in sales, as if it is properly setup, it can track this stuff.

The end of the year forms are not that cheap. We are required to send in a stupid red form with the 1099′s so you can’t just download the 1099 from the internet, as this red form has to be an original.

karenhasfreedom on July 31, 2010 at 2:04 PM

I wonder what they’ll do when they start getting 1099s for the purchase of tar and feathers?

aikidoka on July 31, 2010 at 2:04 PM

This provision will be a nightmare for my company.

ladyingray on July 31, 2010 at 12:55 PM

So just ignore it. The government isn’t enforcing laws anyway, you can take the approach as the illegal alien student protesters:
Government won’t deport illegals

AZfederalist on July 31, 2010 at 2:04 PM

I used about four HotAir threads to write and complain to one of my senators. These people have lost their minds.

Cindy Munford on July 31, 2010 at 2:04 PM

this is going to swamp the small law firm I work for: I worry for our future.

Willie on July 31, 2010 at 2:05 PM

Why do democrats punish prosperity?

Inanemergencydial on July 31, 2010 at 2:13 PM

I frankly think it never occurred to them that this would be considered controversial or burdensome. This isn’t how businesses work, but it’s EXACTLY how government & bureaucracy works. You add more paperwork when you change things, that’s how the bureaucracy is expanded & justified.

I have a friend that is a counselor at a local high school, probably 50% or a bit more of her time is spent filling out FEDERAL paperwork for NCLB & ESL programs. They get less than 10% of their funding from the feds, but every time the feds add something it means reams of new paperwork, it’s just how they operate. Streamlining has never occurred to any of these people. Plus, all the paperwork has to be done in triplicate, and it’s not stuff there are programs to help you with so you can just plug in numbers and such, it all has to be done individually, by hand.

lizzie beth on July 31, 2010 at 2:16 PM

I should add to my “just ignore it” statement. Your company should make sure that it is a member of the protected class who is in charge of whatever department would be responsible for compliance. Get at least one check-box, if not two or three or more, say a gay, transgendered, black-latino female. Or heck, hire one of those illegal alien students when they get out of college and put them in charge of that department. Then, when the fed presses, throw the race card. Problem solved.

/only 1/2 sarc

AZfederalist on July 31, 2010 at 2:24 PM

Here’s the plan, they are making the tax code so onerous, confusing and complicated that it will be impossible for anyone (especially evil for-profit businesses) to comply with it completely even if you hire the best accountants.

Then we are all vulnerable. Any time the State may want to “get you” for any reason, they will be able to through the tax code. And they are the State, so recourse is extremely limited if they come after you.

A few years ago, I would have said this is paranoid, but I’d have been wrong.

forest on July 31, 2010 at 2:24 PM

Hey, wasn’t the polling for this idiotic law getting slightly more favorable lately?

forest on July 31, 2010 at 2:29 PM

Obamacare NEEDS TO BE REPEALED. COMPLETELY.

Kini on July 31, 2010 at 12:53 PM
But…..will the Republicans listen to the American people?

mobydutch on July 31, 2010 at 2:56 PM

I say use Cloward-Plaven (sp?) against ‘em. Small/Large businesses ban together to refuse to file! Tax disobedience on a LARGE scale. Overwhelm the bastards.

SoldiersMom on July 31, 2010 at 3:07 PM

Ed, you’re a real good Republican. Too f’g polite.

Didn’t we just get done with the Unemployment Extension? The Marxist party didn’t give a tinker’s damn about Pay Go did they? PAY GO only exists to kill cuts; it NEVER is mentioned to stem spending.

Why do you play into their f’g game? You’re just being suckered by their Lackoff (rhymes with…) linguistics strategy. The media sets the words and template and conservative fools shape their arguments to fit into the planned linguistic structure. Dopey GOPers go along like good little robots so they won’t be called extremists and radicals.

Goldwater was right, extremism in the defense of Liberty is no vice.

rcl on July 31, 2010 at 3:12 PM

We will not comply.

Fishoutofwater on July 31, 2010 at 3:12 PM

I have a relative in Nevada who runs a small business. She tells me everyone she knows is aware of this new requirement, and they are all doing “cash under the table” to avoid it. In addition, all her former employees are now “contractors”.

sdillard on July 31, 2010 at 3:15 PM

Then we are all vulnerable. Any time the State may want to “get you” for any reason, they will be able to through the tax code. And they are the State, so recourse is extremely limited if they come after you.

A few years ago, I would have said this is paranoid, but I’d have been wrong.

forest on July 31, 2010 at 2:24 PM

“There’s no way to rule innocent men. The only power government has is the power to crack down on criminals. Well, when there aren’t enough criminals, one makes them. One declares so many things to be a crime that it becomes impossible for men to live without breaking laws.” – Ayn Rand

RadClown on July 31, 2010 at 3:16 PM

But…..will the Republicans listen to the American people?

mobydutch on July 31, 2010 at 2:56 PM

Short answer = NO!

rcl on July 31, 2010 at 3:22 PM

I say use Cloward-Plaven (sp?) against ‘em. Small/Large businesses ban together to refuse to file! Tax disobedience on a LARGE scale. Overwhelm the bastards.

SoldiersMom on July 31, 2010 at 3:07 PM

Not enough people are willing to put everything on the line and sadly that is the only way to bring us back from the brink.

thomasaur on July 31, 2010 at 3:29 PM

This is ALL about killing off small business and forcing everyone into unionized, govt-controlled, mega-corporations. Small businesses are too independent, too hard to control for this Regime… you all must become worker ants in the Glorious State-Run Workers’ Paradise of Obamaland.

glockomatic on July 31, 2010 at 3:35 PM

“There’s no way to rule innocent men. The only power government has is the power to crack down on criminals. Well, when there aren’t enough criminals, one makes them. One declares so many things to be a crime that it becomes impossible for men to live without breaking laws.” – Ayn Rand

RadClown on July 31, 2010 at 3:16 PM

Brilliant! That’s it precisely.

Remember when in a debate the moderator noted to Obama that his plan for raising capital gains taxes had always produced LESS revenue when tried in the past. Obama said that wouldn’t matter. “Fairness” was his goal.

Actually your Ayn Rand quote is his real goal. Put in force enough regulations that virtually everyone is breaking the law in some way and is therefore at your mercy.

This isn’t new. For decades OSHA has known it can find something wrong at any business they investigate. The Totalitarians in charge of America will create through the Health Care Bill so many rules that at their discretion they will shut down or crippled anyone who causes them trouble.

We need to DISMANTLE Federal Power.

It’s time for conservatives to honestly admit that the majority of the GOP leadership shares this goal of seizing power from the individual and the States. They will not help. They will fight us as hard as the Democrats.

rcl on July 31, 2010 at 3:36 PM

“Despite all of their rhetoric about the need to eliminate this reporting requirement, Republicans walked away from small businesses when it mattered most,” said Rep. Sander Levin, D-Mich., chairman of the tax-writing House Ways and Means Committee.

Not a single G.D. Republican voted for this monstrous POS and they’re trying to hang this around the neck of the GOP.

F. U. and the horse you rode in on, pal.

Purple Fury on July 31, 2010 at 3:41 PM

Any time the State may want to “get you” for any reason, they will be able to through the tax code. And they are the State, so recourse is extremely limited if they come after you.

A few years ago, I would have said this is paranoid, but I’d have been wrong.

forest on July 31, 2010 at 2:24 PM

Sarah Palins Defense Fund comes to mind…

Jeff2161 on July 31, 2010 at 3:47 PM

“There’s no way to rule innocent men. The only power government has is the power to crack down on criminals. Well, when there aren’t enough criminals, one makes them. One declares so many things to be a crime that it becomes impossible for men to live without breaking laws.” – Ayn Rand

RadClown on July 31, 2010 at 3:16 PM

Exactly. Smart woman there. How am I gonna get the EIN numbers of Staples and the PA Turnpike Commission and everyone else and issue them proper 1099s. We’ll all be non-compliant somehow, and at risk.

forest on July 31, 2010 at 3:50 PM

We’ll all be non-compliant somehow, and at risk.

This provision will never, ever be enforced. It’ll go away, somehow. The only question is how much noise will be made once it gets repealed and whether or not the Dems will somehow spin it as a REPUBLICAN failure — like they’ve done here. Despicable jerks, the Dems. Absolutely despicable.

Purple Fury on July 31, 2010 at 3:53 PM

If I have to hire a clerk just to calculate what is paid to every gas station, retail office outlet, restaurant, hotel, car rental, supply outlet? Fuggit.

Key West Reader on July 31, 2010 at 1:02 PM

Quit whining they are just trying to create jobs.

/sarc
facepalm

CWforFreedom on July 31, 2010 at 3:55 PM

If I were the GOP, I’d be half-inclined to resist Dem efforts to repeal this. The Dems made this mess. Let them lie in it and reap the whirlwind.

Purple Fury on July 31, 2010 at 3:57 PM

They have not been hoisted until the media reports that they have been hoisted. Ed saying it to this chior is not enough to make it so.

AnotherOpinion on July 31, 2010 at 3:59 PM

We’ll probably start seeing lots of things sold for $599 (state tax included) in the near future.

Steve Z on July 31, 2010 at 4:04 PM

Passing a ridiculous law that invites mass disobedience knowing that they can’t arrest all of us is a foolish way to test the citizens’ respect for our laws.

slickwillie2001 on July 31, 2010 at 4:20 PM

I bet the bill does NOTHING to crack down on the (largely illegal immigrant) cash economy.

PattyJ on July 31, 2010 at 4:57 PM

Tucked into the new health care law is a requirement that could become a paperwork nightmare for nearly 40 million businesses…

And a nightmare for many a taxpayer is the other thing Cranky Screecher Weiner jabbed into the Health Care bill (so-called) before squishing it on through: the added tax on investments in gold.

Tax or fine or fee or…it’s all the same.

Just what that has to do with “health care,” try and get a calm, straightforward explanation from Weiner about that (which will never happen, I realize).

Weiner hates gold. He hates gold investments. We get it. But whattheheck does all that have to do with “health care”?

Lourdes on July 31, 2010 at 4:57 PM

Weiner hates gold. He hates gold investments. We get it. But whattheheck does all that have to do with “health care”?

Lourdes on July 31, 2010 at 4:57 PM

Correction ^^ :

Weiner hates other people having gold. He hates other people investing in gold. We get it. But whattheheck does all that have to do with “health care”?

Lourdes on July 31, 2010 at 4:58 PM

When it come to anything to do with economics the Democrats can only be described as abysmally incompetent.

jeanie on July 31, 2010 at 5:01 PM

Democrats can only be described as abysmally incompetent.

jeanie on July 31, 2010 at 5:01 PM

They are actually exceptionally incompetent.

thomasaur on July 31, 2010 at 5:03 PM

I bet the bill does NOTHING to crack down on the (largely illegal immigrant) cash economy.

PattyJ on July 31, 2010 at 4:57 PM

THAT’S the issue that Weiner is trying to bury (that means, another issue he’s trying to sneak past the American people) in the current “9/11 Responders’ Health Care” bill.

He (and other Dems) refused to disallow illegal aliens from receiving benefits/health care coverage/payouts to relatives. AND, they TRIED to bypass the possibility of amendments being added on that might disallow such.

SO, Weiner and other Dems opted to follow the “2/3 vote” procedure in the House (that would, if it had passed, disallowed the amendment process, that would then have disallowed, potentially, illegal aliens from receiving taxpayer-funded payouts, etc. in that legislation)…

When the “2/3″ failed, Weiner screeched on the House floor about “Republicans” who foiled his sneaky, sneaky plan. Rather than admit what he was up to, to inform the public, he just screeched at Republicans…

Lourdes on July 31, 2010 at 5:03 PM

Democrats can only be described as abysmally incompetent.

jeanie on July 31, 2010 at 5:01 PM

They are actually exceptionally incompetent.

thomasaur on July 31, 2010 at 5:03 PM

You know what’s said about liars? That once one lie is cast, that many more have to be cast to support the initial one…and eventually, the liar is caught in the “web” of lies.

That about sums up why Democrats are incompetent. They approach issues with a huge array of hidden agendas that they try to cover-up with screaming, yelling, etc., about the rest of us…to avoid revealing what their actual objectives are.

Reid uses this ugly tactic routinely, so does Pelosi. Well, so do, it appears, all Democrats.

Lourdes on July 31, 2010 at 5:06 PM

As my dearly departed Mother used to say “Save your pennies, they might be worth more in the future”. Amen to that.

sicoit on July 31, 2010 at 1:16 PM

“And my advice to those who die,
Declare the pennies on your eyes”

JFS61 on July 31, 2010 at 5:07 PM

is the irs doing a happy dance over this?

seriously?

cmsinaz on July 31, 2010 at 5:59 PM

Levin can toss blame until he turns blue from the effort, but this debacle belongs to Levin, Pelosi, the Democrats, and Barack Obama. They have been hoisted with their own Pay-Go petard.

But will the public recognize this blatant act? This is the second time they tried it in 2 days, the 9/11 bill and this. And if Anthony Weiner has anything to say about it the blame will be labeled with a big red R.

LifeTrek on July 31, 2010 at 6:16 PM

I wonder what they’ll do when they start getting 1099s for the purchase of tar and feathers?

aikidoka on July 31, 2010 at 2:04 PM

Don’t buy some of these things through your business. Buy them personally or barter, else a visit from the IRS and in some instances other agencies!

dhunter on July 31, 2010 at 6:23 PM

We’re headed towards a cash economy!

Cash and barter economy!
phillypolitics on July 31, 2010 at 1:09 PM

We’re already there. Those of you who live in urban/suburban areas aren’t observing it as much yet, but the backwoods folk and farmers are way ahead of you.

listens2glenn on July 31, 2010 at 1:47 PM

The urban community is totally cash. A friend had a chain of restaraunts in New Orleans before Katrina. His accountant said he should pay by W2 instead of the traditional cash. Of his 150 or so employees, most quit. They were taking cash and doing who knows what else. Anyway, the urban community is a cash community

The suburbs are headed that way

Best business for the 2010s? A Car Wash!

phillypolitics on July 31, 2010 at 6:37 PM

Smell Test? Huge FAIL.

One of those “rubber numbers” that was used to expand to make the bill deficit neutral by Reid and Company.

These clowns are hilarious.

GoldenEagle4444 on July 31, 2010 at 6:42 PM

So far it looks to me like the healthcare bill is a TOTAL FAILURE can we drive a stake through it now before it KILLS us?
Oh and also through any who voted FOR it?
Ben Nelson Traitor D NE.

dhunter on July 31, 2010 at 6:48 PM

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