1099 Requirement Makes a Comeback?
Obama's recently released budget proposal includes a retooled version of the infamous 1099 tax reporting requirement in ObamaCare.
by Amanda Griffin-Johnson
The onerous 1099 tax reporting requirement in ObamaCare requires businesses to “provide a 1099 form to every vendor with whom they do more than $600 worth of business over the course of a year.” This is one of the most widely criticized pieces of the healthcare legislation, and businesses across the country have spoken out against the administrative burden the requirement would cause.
Earlier this month, the Senate voted 81 to 17 to repeal the provision, and the House is likely to vote on the measure soon. During his State of the Union address, President Obama referred to the requirement as “a flaw in the legislation that has placed an unnecessary bookkeeping burden on small businesses.” But President Obama’s recently released budget proposal includes a pared down version of the requirement. What’s different? The Hill reports:
The White House budget proposal released Monday scales back but does not entirely eliminate a controversial provision of the healthcare reform law that has come under attack from Democrats and Republicans alike.
The healthcare law requires businesses to report to the IRS annual purchases of goods and services of more than $600 from each vendor. The budget proposal would eliminate the requirement for goods but retain it for services.
The National Federation of Independent Business immediately blasted the new 1099 proposal as a “bait and switch.”
“We are disappointed that the President has not clearly heard what small businesses are saying,” NFIB Senior Vice President of Federal Public Policy Susan Eckerly said in a statement. “We at NFIB remain committed to helping the President and Congress understand the needs of small business as the budget process moves forward.”
Unnecessary administrative burdens divert scarce business resources from more productive activities and hinder economic growth. To learn more about the red tape businesses in Illinois face, check out our report, “Regulatory Roadblocks: Clearing the Path for Illinois Entrepreneurs.”