by Rob Roper
Even Obama didn’t like this provision of Obamacare. In his State of the Union address, he called the infamous 1099 Law, “a flaw in the legislation that has placed an unnecessary bookkeeping burden on small businesses.”
What the provision did was require all companies to gather the names and taxpayer identification numbers for every payee and vendor with which they do business and issue 1099 tax forms to any individual or corporation from which they purchase more than $600 worth of goods or services per year.
If actually put into practice, it would be a paperwork nightmare of immense proportions, particularly for micro-businesses and small businesses that don’t have dedicated accounting offices — like the kind that form the backbone of the Vermont economy.
Imagine a husband and wife start a home business making handcrafted Vermont furniture. They purchase their lumber from a local mill (1099), they buy their tools from a local hardware store (1099), they get a computer to do their marketing and track their billings (1099 to Small Dog Electronics), they get their brooms, mops, clean up materials at Costco over the course of the year (1099), they attend a trade show in New York (1099 to the airline for the tickets, 1099 to the hotel, 1099 to the vendor for their booth)… you get the picture.
This was so onerous the cost to businesses nationwide in lost time and labor was estimated to be much more than the $17 billion in tax revenues the government hoped to collect by implementing the law. It was rightly judged to be a “job killer.”
Who could support such a monstrosity?
Answer: our own two delegates to the United States Senate, Patrick Leahy (D-VT) and Bernie Sanders (I-VT). The Senate voted to repeal the 1099 law 81-17 . Among the seventeen (all Democrats)… Leahy and Sanders.