The tax reporting requirement in Obamacare that will cause American businesses to file perhaps millions of addition 1099 forms is under attack by Republicans and may be excised from the bill by the time it becomes mandatory in 2012.
The requirement is for businesses who previously only had to report services performed by other companies valued at $600 or more. The new reporting procedure now requires not only services be listed but also goods purchased. Hence, if a company spends more than $600 on stationary, they must use the 1099 to report it.
The potential for a massive increase in the paperwork burden is great. Hence, the GOP has already plotted to repeal the requirement:
Sen. Mike Johanns (R-Neb.) this week continued his push to eliminate a controversial tax-reporting provision of the new healthcare reform law, vowing to offer his repeal bill at every turn."I will file this amendment on every viable vehicle that comes to the Senate floor," Johanns said Monday at a healthcare forum hosted by the U.S. Chamber of Commerce. "Sooner or later, we'll get a vote and we'll see who stands with our job creators and who does not."
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Conservatives on Capitol Hill have joined many in the business community in slamming the provision, arguing that it will hobble small businesses with onerous new paperwork mandates amid a fragile economy when the resources would be better spent hiring new workers."The most routine business expenses will be subject to this new burdensome paper trail," Johanns said Monday. "This mandate has nothing to do with improving the healthcare of this country and should not be part of this law or any other."
What does it say about an administration more concerned with trying to keep track of the minutia of businesses rather than job creation?
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