Health

Senate Upholds Controversial Obamacare Provision

As 20 states present their lawsuit to a Florida judge seeking to have Obamacare’s individual mandate stuck down, another controversial provision in Obama’s health-care law has passed a hurdle in the Senate.

In a 46-52 vote, lawmakers killed an amendment sponsored by Sen. Mike Johanns (R-NE) that would have allowed businesses and nonprofit groups to bypass the law’s requirement to file 1099 tax forms for every purchase with a single vendor that totals more than $600 in a year.

As Ezra Klein reports over at The Washington Post, the provision requires an extensive amount of paperwork, and “making the lives of small-business owners miserable isn’t a good idea.”

Yet that provision is estimated to raise $17 billion over 10 years to pay for a new prevention and public health-care fund.

According to The Hill, a handful of Democrats voted for the Johanns proposal, including Sens. Evan Bayh (IN), Michael Bennet (CO), Blanche Lincoln (AR), Ben Nelson (NE), Mark Pryor (AR), Mark Warner (VA), and Jim Webb (VA).

“The White House does not want to set the precedent of rewriting the healthcare bill,” a GOP aide told The Hill. “They don’t want to admit they made any mistakes in the bill before the election.”

An alternative to Johann’s amendment sponsored by Sen. Bill Nelson (D-FL), which would have increased the reporting trigger from $600 to  $5,000 and exempted employers with less than 25 employees, was also defeated.

Comments (45)

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  • Rampart
    Posted on September 15, 2010 at 5:10am

    As usual…Rules for businesses by Ivy League Idiots who have never run a business [and never will]. They haven’t a clue what a drain this ridiculous filing rule will be on small businesses–Nor do they understand the colossal opportunity for ERROR in such voluminous cross-filing. The IRS will field BILLIONS of additional forms next year via this 1099 lunacy.

    Ultimately, I say to the IRS–If you want us to help do your job, put us on the payroll. Otherwise, you’re outright *steeling* a commodity from hard-working US citizens that no amount of money can replace…TIME. Time with our children, our spouses, our parents, our brothers and sisters, our friends…Time helping the needy, helping our communities…Time earning more revenue for us and, thus, for the government!

    To Washington: You may NOT steel any more of our time. We small business owners have precious little of it and already spend far more than reasonable on fruitless exercises of governmental compliance.

    Report Post » Rampart  
  • Chialms
    Posted on September 14, 2010 at 9:33pm

    So I run purchasing and supply for a fairly large Hospitality Industry provider in GA. We supply management and staffing, or own outright, 24 major brand hotels and restaurants. I can not, even after going back five years, find a single vendor with whom I do business on a regular basis that I have spent less than $600. In fact, I only choose suppliers based on a track record of being able to provide the highest quality product at a reasonable spread rate. This means we will do business with a certain purveyor for a number of years and purchase most or all of a specific item type from them.

    At last count, we had 28 suppliers. At one property. A relatively small property.

    I’m looking for a job flipping burgers as we speak. Anyone hiring?

    Report Post »  
  • LadyIzShy
    Posted on September 14, 2010 at 7:38pm

    all I can say is get informed and VOTE.. speak up speak out and tell them how you feel. they work for you NOT you for them If they get away with this we will work for them..

    TERM LIMITS !!

    Report Post » LadyIzShy  
  • nevadapat
    Posted on September 14, 2010 at 7:03pm

    Who the hell gave OBOZO the keys to the little clown car that him and his circus cronies are driving around anyhow? I‘ve got a bridge that I’d like to sell them.

    Report Post »  
  • Uber
    Posted on September 14, 2010 at 6:47pm

    This is governments attempt to get a better way of tracking wealth. People need to fight this in many ways. Price things to avoid the 600 trigger. Give multiple receipts for part of things. Boy a new TV, charge $599 and you want it shipped to your house and have an extended warranty, thats $599. Write 2 bill of sale, no 1099. Owners need to be creative in how they price things.

    Report Post » Uber  
  • zagfan
    Posted on September 14, 2010 at 6:30pm

    If you don’t comply, the IRS could come and shut down your company. Let’s not have to worry about it and get the whole thing thrown out before it becomes and issue. There are more of us than there is of them…and if we refuse to send in taxes, file 1099, what every they are requiring, hit the streets and have a national protest..We don’t have to take it any longer. I will not make Obama any more of a dictator than he is acting now! America on Strike!

    Report Post » zagfan  
  • usualsuspect
    Posted on September 14, 2010 at 5:51pm

    I have very strong feeling that the 26 Th.. amendment should be repealed or at least modified as the New Health Care laws that require’s all parents to provide Health Care coverage for their children until they are 26 years of age. My argument is this that if A 18 year old citizen is able to Vote in any and all elections they also should bare the responsibility of the democratic vote other wise they truly can vote and dictate to We The People how taxes will be dispersed, A favorable compromise would be that all who are serving in the armed forces can and will have their right to Vote. I only say this because this was the original argument that was made by Ted Kennedy when he made his case that if A American is old enough to serve his Country than he should also have the Right to Vote. however a 26 year old is not A minor any longer. And if you have Rights to Vote than you also should have the responsibility that is A part of that Right

    Report Post » usualsuspect  
    • GnomeChomsky
      Posted on September 14, 2010 at 6:37pm

      It doesnt require parents to provide insurance, it allows you to stay covered on your parents insurance until you are 26.

      Report Post »  
  • Persephone
    Posted on September 14, 2010 at 5:24pm

    We’re just counting the days to get rid of Lincoln. She is purely, and foremost, a party voter.

    November cannot come soon enough. Another job-killing law. Wake up.

    Report Post » Persephone  
  • Persephone
    Posted on September 14, 2010 at 5:23pm

    Well, Arkansas is just waiting to get rid of Lincoln. She is totally a Party voter. Doesn’t care about the people.

    This is just another job-killing law. Wake up.

    Report Post » Persephone  
  • broker0101
    Posted on September 14, 2010 at 5:03pm

    Sorry for the repetition, but this is important.
    Make no mistake, the IRS is BANKING on massive non-compliance. Then they will be able to specifically target any business they choose for non-compliance with IRS regulations (A Federal Offense, I’m sure). It becomes a license to target Democrat unfriendly businesses. Think these things through, people!!!!
    I will further simplify: This eliminates the need for Card Check. With this provision, the IRS can force the businesses of their choosing (i.e. Non-union shops. Think Wal-Mart.) to comply with the 1099 rule – putting them at a HUGE disadvantage (or possible out of business) to favored (i,e, unionized – and also non-1099-rule-enforced) businesses. Have you had the “Ah Hah!” moment yet?

    Report Post » broker0101  
  • qjill
    Posted on September 14, 2010 at 4:53pm

    The purpose of the $600.00 vendor invoice 1099 requirement is obvious. The government has to track all levels of production before they institute the VAT tax (national sales tax). Before you tax the beans, you have to count the beans.

    Report Post » qjill  
  • DSTSS2010
    Posted on September 14, 2010 at 4:44pm

    I hope the 52 (Democrats) who voted against this amendment will suffer the inevitable consequences of their action when they run for re-election.

    Report Post » DSTSS2010  
  • Rickfromillinois
    Posted on September 14, 2010 at 4:17pm

    This is just another reason why the elections in November are so important. It’s time to end this and countless other “the voters are too stupid to know what is good for them so we are going to do it” type laws. The Democrats are constantly taking money from the taxpayers with one and and giving billions to the unions with the other. Enough of these arrogant clowns.

    Report Post » Rickfromillinois  
    • Down2TheC
      Posted on September 14, 2010 at 7:16pm

      Amen Rick. I’m also stuck in IL with the fine voters that brought us quality politicians like Obama, Rhambo, and Blago.

      Report Post »  
  • needanotherReagan
    Posted on September 14, 2010 at 4:14pm

    I’m not filling out one damn thing. It already takes me two months to prepare and file my taxes, for which I have to sort through a mountain of paperwork. The private sector is called the private sector for a reason. End this government intrusion, and kill this bill.

    Report Post »  
  • Time_To_Stand
    Posted on September 14, 2010 at 4:11pm

    I think we all have fallen down the rabbit hole.

    This is just another horrible example of why our votes are so very important.

    The senators that voted in favor to keep this provision should be ashamed! They are not in touch with reality. What is the true purpose of this?

    Repeal the Health Care Bill – all of it. The cost of our healthcare is going to skyrocket!

    Term Limits!
    Throw them out!
    Get out the vote!

    Report Post » Time_To_Stand  
  • wingedwolf
    Posted on September 14, 2010 at 4:09pm

    Seems like civil disobedience is the only way. My dearest friend owns a tiny city grocery store and must constantly replenish her shelves. She works many hours a day now because she can’t afford to hire anyone. I go in and help her for free. She has almost no time for herself now! I can’t imagine how this will impact her. I hear small business owners saying they will close if that portion of the takeover law isn’t repealed.

    Report Post » wingedwolf  
    • jussayin
      Posted on September 14, 2010 at 6:21pm

      God bless you for helping her out! I own a small embroidery business and am in the same boat – it’s me, myself and I working mostly 7 days a week.
      This paperwork nightmare, not to mention the higher taxes that are looming, may be the death of my 15 year old business.

      Report Post »  
  • OldFlyGuy
    Posted on September 14, 2010 at 4:00pm

    As a SMALL business owner I easily spend more than $600 per year at the office supply store for minor supplies like paper, ink, toner, pens, binders and such let alone everything else. This will be a major issue for me to comply with this nonsense. I can’t imagine what it will take for other larger businesses. Can you imagine the paper work stores like Staples, Sam’s, CostCo, HP, Dell and such will have to deal with!!! Incredible!!!

    Report Post »  
  • plunderpower
    Posted on September 14, 2010 at 3:44pm

    Killing trees and adding fees AKA: DBag’s fleas

    Report Post » plunderpower  
  • gapch68
    Posted on September 14, 2010 at 3:39pm

    And we are supposed to believe all of O’s rhetoric this week about how he is ALL about helping small businesses and creating more jobs?! Anyone who still believes this crap about him really trying to get our economy back on track and create jobs, is dilusional!

    Report Post »  
  • MrButcher
    Posted on September 14, 2010 at 3:35pm

    i won’t do it. this law is crap.—-i’ll leave you with the words of H.L. Mencken “the urge to save humanity is always a false front for the urge to rule it.”

    Report Post » MrButcher  
    • BernieKittyCat
      Posted on September 14, 2010 at 3:48pm

      Brilliant!

      Report Post » BernieKittyCat  
    • wingedwolf
      Posted on September 14, 2010 at 4:04pm

      I hope you stick to your guns. I know quite a few retail store owners who intend to not comply. The burden of paperwork is incredible for anyone who has to keep inventory on shelves!!

      Report Post » wingedwolf  
    • GnomeChomsky
      Posted on September 14, 2010 at 4:42pm

      Whoa! I never thought I would ever see HL Mencken quoted on this site.

      Report Post »  
  • dteam270
    Posted on September 14, 2010 at 3:30pm

    Let the good news keep coming in…I don’t see how a lot of small business people are going to make it with additional cost of more paper work. Future keeps looking brighter doesn’t?

    Report Post » dteam270  
    • wingedwolf
      Posted on September 14, 2010 at 4:12pm

      Not only the cost in dollars, but the amount of time this will take! The mind boggles.

      Report Post » wingedwolf  
  • REVEL
    Posted on September 14, 2010 at 3:29pm

    Remember to get out and vote. The absurdity must be halted.

    Report Post »  
  • wingedwolf
    Posted on September 14, 2010 at 3:24pm

    Can you imagine having to file paperwork at a grocery store for every expenditure $600.00 or over? I am hoping that people will just refuse to do it. They can’t prosecute all of us.

    Report Post » wingedwolf  
    • VegasGuy
      Posted on September 14, 2010 at 4:33pm

      Quote: “Yet that provision is estimated to raise $17 billion over 10 years to pay for a new prevention and public health-care fund.”

      The 1099 provision is not going to raise squat. Businesses already claim expenditures as part of their overhead. The vendor supplies a receipt or invoice to the business. The business pays the vendor. The vendor shows the payment as income on its tax forms and pays income tax on it. The paper trail already exists. This is just more paperwork. I believe it is designed to drown businesses and add to their overhead.

      It is clear. Obama is clueless when it comes to business.

      Report Post » VegasGuy  
    • DanB
      Posted on September 14, 2010 at 7:00pm

      I think it the prosecution is exactly how they expect to raise that $17 billion. Businesses will start being forced to pay more than they are required (many provision can be read one or another and both are legal although both produce different taxable amounts) just to appease “Uncle Sam” fining them for non-compliance. Or they’ll lavish more gifts on congressmen to keep the IRS at bay….

      This is going to be like squeezing that lost ounce of toothpaste out of the tube using a hammer. It will be messy. And if you believe that the politicians think we need to have capitalism collapse into socialism, then perhaps they want the mess. Otherwise, they are just so greedy to get every last penny they can that it won’t be long before they kill the golden goose that pays their bills.

      Report Post »  
  • tobywil2
    Posted on September 14, 2010 at 3:22pm

    To classify Mr. Obama as “dumb” one must believe that he is actually trying to improve the economy. In recent history, almost all coups, resulting in a dictatorship were preceded by a very severe economic crisis. Remember when Rahm Emanuel , Obama’s chief of staff, stated one should never waste a crisis. What do you think he meant?

    Mr. Obama presents 3 alternatives:
    Ignorance, which can be cured with knowledge
    Stupidity, which is forever
    Evil, he plans to avenge King George III by destroying the American Revolution and create a dictatorship.

    Almost every initiative that Obama has instigated is destructive to the economy. Does anyone really believe that a President can be that stupid or ignorant? If you do, I have some perfectly dry, vacant land that is completely ready for development in Florida for sale cheap, cash only. http://commonsense21c.com/

    Report Post » tobywil2  
    • poppopschell
      Posted on September 14, 2010 at 3:27pm

      It seems to me thyat it was Pelosi who said pass the bill then you‘ll know what’s in it. Now the DP is saying that no amendments/changes are allowed even though they didn’t even know what was in it. I’m confused.

      Report Post »  
    • Rock Knutne ND
      Posted on September 14, 2010 at 3:30pm

      Little by little the truth started to come out…

      Hard to argue against ones own words from a book or an interview on tape.

      The truth is now coming in bigger chunks.

      Thank you Tea Partiers. Keep digging!

      Report Post » Rock Knutne ND  
    • wingedwolf
      Posted on September 14, 2010 at 4:02pm

      Well said. This prez is far from stupid. He and his commie helpers are systematically dismantling the United States of America. I only hope it isn’t too late to put them down.

      Report Post » wingedwolf  
    • passingliaison
      Posted on September 14, 2010 at 5:13pm

      Speaking of Nancy Pelosi, has it occurred to anyone why people would actually vote to re-elect a Democrat considering most of them never even read the bill in the first place? Seriously, why aren’t republicans running campaign adds that detail such stupidity by Democrats? If they are having to make amendments to the bill on a piecemeal basis because they didn’t know what was in the stupid bill is it any wonder then why Americans are starting to revolt against the Democratic party? At least no republican or independent i have heard of has eve done anything so stupid. Voting for that Obama-care and noting reading its provisions is like having a house built but not ever reading the blueprints before they start to build.

      Report Post »  
  • broker0101
    Posted on September 14, 2010 at 3:21pm

    Clear, undeniable proof that the purpose of this law is to deter or destroy private sector businesses. There is absolutely no other logical reason for this provision to exist.

    Report Post » broker0101  
    • wingedwolf
      Posted on September 14, 2010 at 4:00pm

      And we need to rebel be not complying. The owner of a small store would spend every waking hour generating paperwork for replenishing the inventory. What about the owners of large stores? Is anyone else visualizing the reams of paperwork under which retail stores are going to be crushed?

      Report Post » wingedwolf  
    • Anonimouse
      Posted on September 14, 2010 at 4:04pm

      Amen comrade!

      Report Post »  
    • broker0101
      Posted on September 14, 2010 at 4:16pm

      Make no mistake, the IRS is BANKING on massive non-compliance. Then they will be able to specifically target any business they choose for non-compliance with IRS regulations (A Federal Offense, I’m sure). It becomes a license to target Democrat unfriendly businesses. Think these things through, people!!!!

      Report Post » broker0101  
    • broker0101
      Posted on September 14, 2010 at 4:31pm

      I will further simplify: This eliminates the need for Card Check. With this provision, the IRS can force the businesses of their choosing (i.e. Non-union shops. Think Wal-Mart.) to comply with the 1099 rule – putting them at a HUGE disadvantage (or possible out of business) to favored (i,e, unionized – and also non-1099-rule-enforced) businesses. Have you had the “Ah Hah!” moment yet?

      Report Post » broker0101  
    • Ccbn213
      Posted on September 14, 2010 at 6:08pm

      So we’re going back to the redundant “red tape” era…nice.

      Report Post »  
    • dascarlos
      Posted on September 14, 2010 at 11:53pm

      What type of FEAR has our UNITED STATES OF AMERICA’S GOVERNMENT EMPLOYEES, ( That are ELECTED to provide a service, HIRED by the PEOPLE of this NATION, ) Being threatend with..!!!!!.
      To make them vote on Immoral , illegal , stupid , Laws that are not even READ.
      And the parts of the new laws, that are not even written yet, (by others ? ).
      Will be not voted on but have been Passed By Law. GEE THANKS WASHINGTON….
      I would like to be the first UNITED STATES of AMERICA’S CITIZEN , To Say “YOUR FIRED ”

      Report Post »  
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