Senate votes $18 billion in breaks for tax cheats

In an alarming show of bipartisan corruption, the Senate voted 81 to 19 to cancel the 1099 requirement from the Patient Protection and Affordable Care Act – better known as the fascist-socialist-unconstitutional-budget-busting-obamacare law. Obama, who signaled his support of the repeal during the State of the Union, is expected to sign the bill during a press conference to announce his plans to run for reelection as a both a small “d” democrat and a Teapublican.

Corporate television “news” channels were quick to announce the story with breaking spin saying campaign contributers have been heard and announcing this great Republican victory as the first step toward total repeal* of the fascist-socialist-unconstitutional-budget-busting-obamacare law while allowing small businesses to focus on the critical work of growing their businesses and creating jobs instead of IRS paperwork.

The 1099 requirement mandated all businesses, beginning in 2012, report to the Internal Revenue Service purchases of $600 or more to another business or individual.

You might be asking, “Just, what in the hell did that have to do with healthcare?” Taxes.

You might be asking, “Huh? Reporting causes taxes?” Yes. When payments are reported, individuals and business are required to pay tax on that income. Without the 1099s, the treasury expects it will add $18 billion a year to the deficit. Those revenues were included in the funding sources to pay for the healthcare law.

You might be asking, “Then how are going to make up for the lost revenue?” Best question. They aren’t. In an effort to make up the lost tax revenue, Democrats wanted it funded by requiring requiring other tax cheats, American companies, especially oil companies, that are hiding revenues offshore, to pay taxes – they were voted down by a laugh vote. The Republican-sponsored repeal directs the Office of Management and Budget to take up to $44 billion appropriated for other purposes, but not yet spent, and pretend that it won’t be, even though it will be.

You might be asking, “If the entire future of America rests on getting the deficit under control, why would they do this?” The simple answer is, that unless our Senators are reelected, they won’t have a future and, if they don’t have a future, they will have to become lobbyists. The more complicated answer is, that all requirements are bad; all taxes are bad; tax cheats have more money for campaign contributions than law-abiding, taxpayers do; and, businesses, of course, have unlimited amounts of money for campaign contributions.

You might be asking, “Aren’t you being just a wee bit unfair? I have read on the internets that this overly burdensome requirement would cause up to 40% of American businesses to close their doors.” Yes, I am just a wee bit unfair. This requirement not only gets people to pay their taxes, but is a secret stimulus plan to create jobs for accountants and lawyers, while keeping the US Postal Service in business.

More fairly, the way the 1099 requirement was written, it was almost impossible for businesses to fulfill. A competent Congress should have revised the requirement, not repeal it.

* A vote on repealing the Patient Protection and Affordable Care Act failed in the Senate with all 47 Republicans voting for repeal and 51 Democrats voting against repeal.

3 thoughts on “Senate votes $18 billion in breaks for tax cheats

  1. Monica Smith

    That 1099 thingy had Republican finger-prints all over it. They’re always trying to figure out how to collect more taxes from little people. Keeping a record of every six hundred dollar payment to anyone and sending it off to the IRS was one of those poison pills inserted, like the last-days consultations, to give Republicans something stupid-sounding to be against. In this case, the paper-work requirement was supposed to be the basis for hiring the 15,000 new IRS agents that weren’t being hired.

    It’s very likely that the shadow or underground economy has been growing steadily from the 10% of GDP that was estimated in 2000 (the Treasury now estimates that $356 billion in taxes aren’t being collected annually) and Republicans are keen to come up with strategies to get non-filers to file income tax returns. The Bush tax rebate was one such trick. Economists argue that shadow economies flourish in underdeveloped countries — i.e. well-organized governments know how to capture taxes. What I’d argue is that tax-avoidance increases when people perceive that the public monies aren’t well spent. Trying to argue that Greece and Italy, two of our oldest civilizations, are under-developed is silly. But, if that’s not the rationale, then what’s going on in the U.S. is best not talked about.

    Anyway, the best laid traps of Republicans gang aft awry.

  2. Tom Ferguson

    of course that $600 was a cut-off, $600-and-above, meaning it was meant to capture not just $600 but that and everything above, excusing that amount below, like self-employment in general… AND it’s not surprising it would be inserted as sabotage by republicrats whose sense of fair play knows no shame.


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