Posted on 08/02/2010 10:15:24 AM PDT by Red Badger
WASHINGTON -(Dow Jones)- Congressional Democrats may water down or repeal new tax reporting rules that is supposed to raise $16 billion for health-care legislation, facing a chorus of criticism about the rules.
House Democrats were forced to postpone a vote late Thursday on a GOP motion calling for repeal of the reporting requirement. That, in turn, delayed action on an $11 billion bill that expands federally-subsidized bonds for infrastructure projects. House lawmakers may add language to the infrastructure bill to weaken or repeal the IRS reporting regime, Democratic aides said.
"This is an issue we want to address and now we have an opportunity to do so," said Kristie Greco, a spokeswoman for House Majority Whip James Clyburn (D., S.C.).
A vote on a revised infrastructure package could come as early as Friday, but House Democratic aides said no final decisions have been made.
In the Senate, Sen. Mike Johanns (R., Neb.) is seeking to add language repealing the requirement to a package of small business tax breaks.
Starting in 2012, businesses will be required to file a 1099 to the Internal Revenue Service for each supplier or service provider to which payments exceed $600 in a single year. They are already required by law to report payments to non-corporate service providers, but the health-care law broadened that to include corporate vendors and purchases of goods.
"When small businesses are focused on filling out paperwork and filing more tax forms, they aren't focused on creating jobs," said Rep. Dave Camp (R., Mich.), author of the House motion.
The National Federation of Independent Business, an influential small business group, put House lawmakers on notice Thursday that it would include the Camp motion in the vote ratings it assigns lawmakers annually.
The reporting rules have also come under fire from the National Taxpayer Advocate, an independent office within IRS. It said in a July report that the costs to businesses may outweigh any benefit the IRS gleans from the added information.
Four Senate Democrats, led by Sen. Mark Begich (D., Alaska), also called on IRS in a letter earlier this month to minimize the burden on businesses from the provision. They said they weren't looking to repeal it.
The IRS has already said that small businesses will not be required to report payments made by credit card. It is accepting public comments on implementation of the law and mulling additional ways to ease the requirement.
The problem congressional Democrats face, if they make changes to the law, is how to replace the revenue that was to be generated for the health-care overhaul.
At the same time, House leaders are anxious to pass the infrastructure bill before they leave town at the end of this week for a six-week summer recess.
-By Martin Vaughan, Dow Jones Newswires; 202-862-9244; martin.vaughan@dowjones.com
The idea that this will raise money is DUMB. They’re already accounted for on the tax info. This amounts to some kind of illogical and probably illegal audit. It’s like dumpster diving...
Word to GOP: Do not get involved.
Let the Dems who voted for this crap bill undo it on their own.
The IRS has already said that small businesses will not be required to report payments made by credit card
I seem to remember some promise about reducing cost through reducing paperwork and bureaucracy.
bwahahahah
We recently received an 864 page document from the feds full of new laws regulations and penalties...
defining 2 words which appeared in the original health care bill.
“meaningful use”
2 words => 864 pages.
Yes, paperwork and regulation burden will surely lessen further reducing cost and improving access just as planned in the original bill. < heavy /s >
Please fix our mistake for us.
The IRS has already said that small businesses will not be required to report payments made by credit card. It is accepting public comments on implementation of the law and mulling additional ways to ease the requirement.
So now you have to track how the purchase was paid for? What if you have a vendor you make purchases from both with checks and credit cards? Will the minimum purchase requirement be $600 in checks, or $600 total.
The problem congressional Democrats face, if they make changes to the law, is how to replace the revenue that was to be generated for the health-care overhaul.
No one expected any real revenue to be made from this. They just strong-armed the CBO into estimating that it would bring in a few billion dollars extra so they could spend that too.
This provision, along with any content of Obamacare, is irrelevant since it unconstitutional on its face as Article 1 Section 8 does not specifically list regulating helath care as an enumerated power! The people are not bound to comply with an unconstitutional act! It is time for people to defend the Constitution by openly defying this marxist regime!
Imagine the costs increased due to the added paperwork on a medical practice...................
Remember, Obamugabe said, “The US Constitution is a charter of negative liberties.”...............
Title IX Revenue Provisions—Subtitle A: Revenue Offset “(Sec. 9002) Requires employers to include in the W-2 form of each employee the aggregate cost of applicable employer-sponsored group health coverage that is excludable from the employee’s gross income (excluding the value of contributions to flexible spending arrangements).”
Now, why would the IRS want the ‘aggregate cost of applicable employer-sponsered group health coverage’ on the W-2?
Suggestions?
Now, if you were to make the government unhappy somehow, maybe by complaining about the tanning tax, some government jackbooted thug could 'find' some obscure regulation you failed to comply with and harass you forever.
It will also DROWN the IRS in a sea of paperwork from which they could never hope to escape. If the Republicans were smart they’d filibuster any changes and force the Dems to live with the consequences of their actions.
I really hope the Dems don't read FR. I type in too much stuff as my nightmare scenarios and then they'll use it for their master plan.
Yes, our Congresscritters would certainly like to add income tax on top of the new excise tax already imposed with the new Obamacare laws (the final version of the laws be can found here.)
Because of section 9001 of that monstrosity, starting in 2013 Obamacare will impose a new excise tax on large premiums. When it kicks in (notice how they wait for the next presidential election to go by), a punitive 40% excise tax will be imposed on any premium payment over $8500 per year for a self-only plan. For a family plan, any premium payment going over $23,000 per year will be taxed at the same extortionate rate.
Excise taxes are far more punitive than even income taxes since at least income is netted; excise taxes are off the top.
Being a small business owner here in Ohio, I’m here to tell you that catastrophic insurance is not that expensive!
We have them for all our employees (and savings accounts).
If they really wanted a better health insurance industry, they should have considered John Macky’s (Whole Foods) ideas.
But the motives of the ‘progressives’ are evil, involving command and control of the medical industry.
*
someone tell me how the hell there is a Democrat from Alaska in the Senate??
There are dumb-ass people everywhere.........
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