In an alarming show of bipartisan corruption, the Senate voted 81 to 19 to cancel the 1099 requirement from the Patient Protection and Affordable Care Act – better known as the fascist-socialist-unconstitutional-budget-busting-obamacare law. Obama, who signaled his support of the repeal during the State of the Union, is expected to sign the bill during a press conference to announce his plans to run for reelection as a both a small “d” democrat and a Teapublican.
Corporate television “news” channels were quick to announce the story with breaking spin saying campaign contributers have been heard and announcing this great Republican victory as the first step toward total repeal* of the fascist-socialist-unconstitutional-budget-busting-obamacare law while allowing small businesses to focus on the critical work of growing their businesses and creating jobs instead of IRS paperwork.
The 1099 requirement mandated all businesses, beginning in 2012, report to the Internal Revenue Service purchases of $600 or more to another business or individual.
You might be asking, “Just, what in the hell did that have to do with healthcare?” Taxes.
You might be asking, “Huh? Reporting causes taxes?” Yes. When payments are reported, individuals and business are required to pay tax on that income. Without the 1099s, the treasury expects it will add $18 billion a year to the deficit. Those revenues were included in the funding sources to pay for the healthcare law.
You might be asking, “Then how are going to make up for the lost revenue?” Best question. They aren’t. In an effort to make up the lost tax revenue, Democrats wanted it funded by requiring requiring other tax cheats, American companies, especially oil companies, that are hiding revenues offshore, to pay taxes – they were voted down by a laugh vote. The Republican-sponsored repeal directs the Office of Management and Budget to take up to $44 billion appropriated for other purposes, but not yet spent, and pretend that it won’t be, even though it will be.
You might be asking, “If the entire future of America rests on getting the deficit under control, why would they do this?” The simple answer is, that unless our Senators are reelected, they won’t have a future and, if they don’t have a future, they will have to become lobbyists. The more complicated answer is, that all requirements are bad; all taxes are bad; tax cheats have more money for campaign contributions than law-abiding, taxpayers do; and, businesses, of course, have unlimited amounts of money for campaign contributions.
You might be asking, “Aren’t you being just a wee bit unfair? I have read on the internets that this overly burdensome requirement would cause up to 40% of American businesses to close their doors.” Yes, I am just a wee bit unfair. This requirement not only gets people to pay their taxes, but is a secret stimulus plan to create jobs for accountants and lawyers, while keeping the US Postal Service in business.
More fairly, the way the 1099 requirement was written, it was almost impossible for businesses to fulfill. A competent Congress should have revised the requirement, not repeal it.