Republicans Cross the Aisle to Get Their Way

Well, sure, take the onerous chore of issuing 1099s off the back of small businesses.  Forgetting to declare income certainly seems a harmless way to aid small businesses.  I have a housekeeper who I pay $100/mo, that’s 1200/year.  It would be a burden to have to write her a 1099.  Then again I’m not a small business owner anymore but I get the picture.

I have a friend who fixes networks and sometimes gets a couple of thousand that he tries not to declare.  This gives me some pause.  Add a zero and we’re talking real money.  So, who do these lobbyist represent?  Honest Burghers?  I think not. –  carlos


 

The Health Care Tweak

Published: February 5, 2011
For a brief moment last week Republicans and Democrats agreed on something about health care reform. The Senate voted overwhelmingly — the tally was 81 to 17 — to repeal a minor provision that had brought vociferous complaints from business lobbyists.
The agreement is being hailed as a glimmer of hope that the two parties can cooperate to fix small flaws in the reform law. But don’t applaud too loudly. The Senate action could allow continued tax cheating. And there is no sign at all that Republicans are backing off their campaign to repeal or obstruct reform, no matter the cost.

The provision, known as the expanded 1099 reporting requirement, has almost nothing to do with health care reform beyond generating roughly $20 billion over the next decade to help finance expanded coverage.

It was designed to curtail tax evasion by requiring businesses to report payments of $600 or more a year to any vendor. The notion was that the vendors would then think twice before “forgetting” to report the income to the Internal Revenue Service.

Unfortunately, it would also impose a bookkeeping burden, which would be especially hard on small businesses — a fact the Republicans have been gleefully trumpeting.

The Senate should have solved this problem by exempting the smallest businesses and raising the threshold for reporting, perhaps to $5,000 a year, thus recouping at least some of the uncollected taxes. But bipartisan anti-tax fervor won out. The Senate repealed the provision and told the Obama administration to take the money from other projects. Meanwhile, don’t expect the posturing about reform to let up.

NY Times 2/6/11

 

Advertisements

About carlos

I'm a curious person, of reasonable intellect, "on the beach" (retired) and enjoying my interest in anthropology, language, civil rights, and a few other areas. I've been a hippie/student/aerospace tech writer in the '60s, a witness to the Portuguese revolution in the ‘70s, a defense test engineer and witness to the Guatemalan genocide in the '80s, and a network engineer for an ISP in the '90s. Now I’m a student and commentator until my time is up. I've spent time under the spell of the Mesoamerican pyramids and the sweet sound of the Portuguese language. I've lived in Europe, traveled in Brazil, Central America, Iceland, New Zealand, and other places. My preferred mode of travel is with a backpack and I eat (almost) anything local. Somehow, many of the countries I have been to have had civil unrest (for which I was not responsible). I'm open to correspond with anyone who might share my liberal, humanist interests. I live in San Buenaventura, California.
This entry was posted in Economics, Poli/Econ and tagged , , , , . Bookmark the permalink.