Block on Trump's Asylum Ban Upheld by Supreme Court
Earlier this week, we discussed the efforts by Senate Finance Committee Chair Max Baucus (D-Mont.) to move toward a possible repeal of the new 1099 reporting requirements for businesses. Originally proposed under the Bush Administration, the increase in tax revenue brought in by the 1099 reporting requirements would have gone to help fund the Affordable Care Act.
However, the increased 1099 reporting would be especially burdensome for small businesses, reports The New York Times. As previously discussed, a business would have to report to the IRS any goods or services purchased over $600 in a year. Small business worry that the effort to report would be substantial. For each vendor supplying more than the base amount of services, a company would have to send a form both to the vendor and to the IRS.
It is not even clear that such a burden would be off-set by a great benefit. According to The Times, the increased tax revenue was projected to be $19 billion dollars over the next 10 years. However, aides to Senator Baucus have expressed doubt whether such an offset is even necessary, or would be sought. The bill had not yet gone into effect and the savings already projected by the Affordable Care Act put the law in the black by more than hundred billion dollars at this point, reports The Times.
On the other side of the aisle, Republicans are ambivalent about requiring offsets for repeal as well. "He would like to see the provision repealed," an aide to Senator Charles Grassley (R-Iowa) told The Times. "I think he'd be willing support a provision with offsets that doesn't raise taxes."
In the end, whether offsets will be necessary before both parties will agree to an appeal is an open question. Either way, placing more burdens on small businesses already struggling to help the economy out of the downturn is not good for anyone. As Senator Baucus noted on the Senate floor, 1099 forms have been used for years to help the IRS track income. "But," he continued, "it has become clear the new rules went too far."