Last May I posted Healthcare 1099s to show just one of many flaws in the Healthcare bill. Remember that Pelosi stated that “we had to pass this bill to see what was in it”. This rings as one of the most irresponsibly moronic statements ever from a House leader. Well now that we have passed the bill, we see how recklessly it was constructed.

The change in 1099 reporting has nothing to do with health care except claim it is an effort to raise revenues by capturing income that was not before. The claim is spurious at best and the requirement is so onerous that it will more likely create new black markets to avoid the paperwork. This is the result of an administration that has such little experience in the private sector.

In the 1099 Insurrection in the Wall Street Journal Online the authors note that now “we see what is in the bill” we don’t like it and the Senate is trying to change this provision. Yet the White House is strongly resisting even this change, fearing it will only begin the unraveling of the bill.

An excerpt:

Meanwhile, small businesses are staring in horror toward 2013, when the 1099 mandate will hit more than 30 million of them. Currently businesses only have to tell the IRS the value of services they purchase from vendors and the like. Under the new rules, they’ll have to report the value of goods and merchandise they purchase as well, adding vast accounting and paperwork costs.

Think about a midsized trucking company. The back office would have to collect hundreds of thousands of receipts from every gas station where its drivers filled up and figure out where it spent more than $600 that year. Then it would also need to match those payments to the stations’ corporate parents.

Most Democrats now claim they were blindsided and didn’t understand the implications of the 1099 provision—which is typical of the slapdash, destructive way the bill was written and passed. As the critics claimed, most Members had no idea what they were voting on. Some 239 House Democrats voted to dump the 1099 provision in August, and the repeal would have passed except Speaker Pelosi rigged the vote procedurally so it needed a two-thirds majority. She thus gave Democrats the cover of a repeal vote without actually repealing it.

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