February 3, 2011

Senate repeals some Obamacare. Not a win.

Politico has reported,
The Senate voted Wednesday for the first time to repeal a piece of President Barack Obama’s health care overhaul, rolling back a new tax reporting requirement that’s been universally panned by business owners.

The amendment to repeal the 1099 reporting requirement passed 81-17 with broad bipartisan support.

The provision was one that Obama identified in his State of the Union speech as something that Democrats were willing to change.

The Senate voted several times last year on repealing the requirement, but all the attempts failed amid partisan bickering over how to pay for it. Republicans made an attempt to repeal the provision by taking money from the health reform law’s prevention and wellness fund. Democrats tried to repeal it without paying for it.

The provision would have required business owners to file 1099 tax documents on all cumulative purchases from a single vendor that total more than $600 in a year.
This is good news for business owners because the onerous tracking task is gone. The question though is now that it's going to be repealed (as it seems further passage has bi-partisan support), where is the $17 billion in revenue this was expected to generate to help pay for Obamacare going to come from? The answer is nowhere. It's going to add to the net debt that this health care program will fuel. More debt is not a win.

And with Obamacare not yet dead, it means that there is no guarantee that future enacting of this requirement is still possible. No, likely. That is because the end game for liberals is state funded single payer health care. As a result of that goal, any burden that can be put in place that generates revenue for government and frustrates business adds fuel to the fire of those wishing to do away with insurance companies and simply switch to a simple health tax. The game will be let's get rid of this burdensome tax and just go with a simple health care system. So, this 1099 burden is not gone for good, just for now. Some liberals are thinking long term for their single payer game. It's a second reason the repeal of this section of Obamacare is not a win.

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