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04 August 2010

New Health Care Law Burdens 40 Million Businesses With Additional Paperwork

The Associated Press reported last week that in their rush to pass a health care reform bill, the Democrat-controlled Congress burdened 40 million businesses with a "paperwork nightmare."

Tucked into the new health care law is a requirement that could become a paperwork nightmare for nearly 40 million businesses.

They must file tax forms for every vendor that sells them more than $600 in goods.
The goal is to prevent vendors from underreporting their income to the Internal Revenue Service.

The government must think vendors are omitting a lot because the filing requirement is estimated to bring in $19 billion over the next decade.

Business groups say it will swamp their members in paperwork, and Congress is listening. Democrats and Republicans want to repeal it, but getting them to work together on the issue is proving difficult in an election year.

Ohlemacher, Stephen (2010-7-31). Paperwork nightmare: A struggle to fix new law. Associated Press. Retrieved on 2010-8-4.

Last Friday, Democrats attempted to repeal the burdensome provision utilizing the same heavy-handed tactics that created the mess in the first place.

Not enough Republicans voted for the bill resulting in House Ways and Means Committee chairman Sander Levin (D - Michigan) saying, "Republicans made clear that they care more about some companies that ship jobs overseas than small businesses that face a potential burden by this reporting requirement." [Needham, Vicki (2010-7-30). House Republicans nix Democrats effort to repeal 1099 requirement. The Hill. Retrieved on 2010-8-4.]

However, I disagree.

Instead of slowing down and getting it right the first time, Congressional Democrats were so desperate for a political victory that they were willing to pass any health care bill by hook and by crook. And now, we're seeing the result of what happens when elected officials legislate for politics rather than legislate for the people.