Full article from WSJ
”..The Senate will vote this morning on whether to repeal part of ObamaCare that it passed only months ago. The White House is opposed, but this fight is likely to be the first of many as Americans discover—as Nancy Pelosi once famously predicted—what’s in the bill.”
- Senate will vote on amendments to rescind an ObamaCare mandate that companies track and submit to the IRS all business-to-business transactions over $600 annually.
- Although Dems claim this will raise $17 billion in revenue, Treasury Dept’s National Taxpayer Advocate Nina Olson says the costs will be “disproportionate as compared with any resulting improvements in tax compliance.”
- Under new rules, businesses will have to report the value of goods and merchandise they purchase, in addition to services acquired.
- WH doesnt want to set a precedent of repealing parts of ObamaCare… therefore they are endorsing an alternative proposal from Bill Nelson (FL-D)
- Nelson Amendment would increase the 1099 threshold to $5,000 and exempt businesses with fewer than 25 workers.
- Businesses would still have to track all purchases, not knowing in advance which contractors will exceed $5,000 at the end of the year. It also creates a marginal barrier to job creation—for a smaller firm, hiring a 26th employee would be extremely costly. Also it adds a tax on domestic oil production.
Dems claim they were blindsided and didn’t understand the implications of the 1099 provision, but that’s what happens when you don’t read the bill.