He has called for repealing a tax-filing mandate included in the ObamaCare law. Starting in 2012, under Section 9006 of the new health care law, businesses will have to file a 1099-MISC form with the IRS for every transaction with a vendor of at least $600.
Unfortunately, the Baucus bill does not completely repeal the 1099 mandate – only doing so for firms with fewer than 25 employees, and increasing the threshold amount for others to $5,000.
In addition, the Baucus effort would include, as noted in TheHill.com, an energy tax increase: “‘Specifically,’ Baucus's office explained, ‘it would repeal Section 199 of the tax code, which currently allows these corporations to deduct 6 percent of their income from oil and gas production from their tax liability, effective December 31, 2010.’”
Of course, this would raise the costs of domestic energy production, with all consumers, including small businesses, eventually feeling the negative effects.
The 1099-MISC mandate will be a costly paperwork nightmare, and it must be repealed. But that repeal should be complete, and not used as an excuse to raise other taxes.
Raymond J. Keating
Small Business & Entrepreneurship Council