1970 silver art
31st July 2010, 10:58 PM
Sounds like bad news on trying to repeal the 1099 law. Bummer.........
Source: http://online.wsj.com/article/BT-CO-20100730-717884.html
By Martin Vaughan Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--House Democrats Friday reversed course and backed the repeal of controversial Internal Revenue Service reporting rules that were part of health-care legislation.
But the measure to repeal the rules failed in the House as Republicans rallied against provisions--added to the bill by Democrats to irk the opposition--to raise taxes on U.S. multinational firms.
The measure fell on a 241-154 vote. All but one of the House Democrats who voted supported the measure, and only two Republicans voted in favor of the bill.
Democrats have come under increasing pressure over the IRS reporting requirements. Business groups, Republicans and a watchdog agency within the IRS have charged that it would burden small business with mounds of extra paperwork.
Friday's House vote came only after Democrats postponed a vote on a Republican motion to repeal the IRS reporting rule. Democratic leaders set a high procedural hurdle on the vote for repeal, bringing it to a vote under special House rules that require a two-thirds majority for passage. Republican aides said this was mainly a way for Democrats to avoid a politically damaging vote on the GOP motion.
Still, the switch appears to be the first instance of Democrats broadly calling for repeal of a part of the health-care law. Republicans are campaigning on promises to repeal various aspects of the overhaul.
"It's awfully good to hear the other side admit that they messed up in the health care bill," said Rep. Ginny Brown-Waite (R., Fla.) during House floor debate.
House Democratic aides who spoke on condition of anonymity downplayed the significance of the reversal, saying the IRS reporting requirement was not integral to the functioning of the health-care overhaul. They also noted that the provision was drafted by the Senate, and said House lawmakers were never enthusiastic about it.
A Treasury spokeswoman declined to comment on the bill, while a White House official did not respond to a request for comment.
Under the health-care law, businesses beginning in 2012 will be required to file a form 1099 to the Internal Revenue Service for each supplier or service provider to which payments exceed $600 in a single year.
They are already required by law to report payments to non-corporate service providers, but the health-care law broadened that to include corporate vendors and purchases of goods.
House Ways and Means Committee Chairman Sander Levin (D., Mich.), speaking on the House floor Friday, called the requirement "a potentially onerous burden for small businesses."
The extra reporting is projected to raise $17 billion in government revenues for the IRS over the next 10 years, because it will give the IRS ability to ferret out some income that currently is not reported by the vendors.
To replace that revenue, Democrats proposed curbing foreign tax credits that multinationals use to lower their U.S. tax burden. They inserted proposals from the Obama administration that have been vigorously opposed by firms including International Business Machines Corp. (IBM).
That strategy pitted some frequent Republican allies against one another, as the U.S. Chamber of Commerce rushed to oppose the bill while the National Federation of Independent Business urged lawmakers to support it.
Senate Republicans, led by Sen. Mike Johanns (D., Neb.) are also seeking to add language repealing the IRS reporting requirement to small business tax package pending in that chamber. Four Senate Democrats earlier this month wrote the IRS to raise concerns over the provision.
-By Martin Vaughan, Dow Jones Newswires; 202-862-9244; martin.vaughan@dowjones.com
(Corey Boles contributed to this article.)
Source:
http://online.wsj.com/article/BT-CO-20100730-717884.html
Source: http://online.wsj.com/article/BT-CO-20100730-717884.html
By Martin Vaughan Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--House Democrats Friday reversed course and backed the repeal of controversial Internal Revenue Service reporting rules that were part of health-care legislation.
But the measure to repeal the rules failed in the House as Republicans rallied against provisions--added to the bill by Democrats to irk the opposition--to raise taxes on U.S. multinational firms.
The measure fell on a 241-154 vote. All but one of the House Democrats who voted supported the measure, and only two Republicans voted in favor of the bill.
Democrats have come under increasing pressure over the IRS reporting requirements. Business groups, Republicans and a watchdog agency within the IRS have charged that it would burden small business with mounds of extra paperwork.
Friday's House vote came only after Democrats postponed a vote on a Republican motion to repeal the IRS reporting rule. Democratic leaders set a high procedural hurdle on the vote for repeal, bringing it to a vote under special House rules that require a two-thirds majority for passage. Republican aides said this was mainly a way for Democrats to avoid a politically damaging vote on the GOP motion.
Still, the switch appears to be the first instance of Democrats broadly calling for repeal of a part of the health-care law. Republicans are campaigning on promises to repeal various aspects of the overhaul.
"It's awfully good to hear the other side admit that they messed up in the health care bill," said Rep. Ginny Brown-Waite (R., Fla.) during House floor debate.
House Democratic aides who spoke on condition of anonymity downplayed the significance of the reversal, saying the IRS reporting requirement was not integral to the functioning of the health-care overhaul. They also noted that the provision was drafted by the Senate, and said House lawmakers were never enthusiastic about it.
A Treasury spokeswoman declined to comment on the bill, while a White House official did not respond to a request for comment.
Under the health-care law, businesses beginning in 2012 will be required to file a form 1099 to the Internal Revenue Service for each supplier or service provider to which payments exceed $600 in a single year.
They are already required by law to report payments to non-corporate service providers, but the health-care law broadened that to include corporate vendors and purchases of goods.
House Ways and Means Committee Chairman Sander Levin (D., Mich.), speaking on the House floor Friday, called the requirement "a potentially onerous burden for small businesses."
The extra reporting is projected to raise $17 billion in government revenues for the IRS over the next 10 years, because it will give the IRS ability to ferret out some income that currently is not reported by the vendors.
To replace that revenue, Democrats proposed curbing foreign tax credits that multinationals use to lower their U.S. tax burden. They inserted proposals from the Obama administration that have been vigorously opposed by firms including International Business Machines Corp. (IBM).
That strategy pitted some frequent Republican allies against one another, as the U.S. Chamber of Commerce rushed to oppose the bill while the National Federation of Independent Business urged lawmakers to support it.
Senate Republicans, led by Sen. Mike Johanns (D., Neb.) are also seeking to add language repealing the IRS reporting requirement to small business tax package pending in that chamber. Four Senate Democrats earlier this month wrote the IRS to raise concerns over the provision.
-By Martin Vaughan, Dow Jones Newswires; 202-862-9244; martin.vaughan@dowjones.com
(Corey Boles contributed to this article.)
Source:
http://online.wsj.com/article/BT-CO-20100730-717884.html