"The bad news: as I predicted yesterday, the bipartisan effort to repeal the ObamaCare provision that requires companies to create 1099 forms for every business-to-business transaction has run aground on the shoals of Pay-Go. The good news: four months after the bill passed, the Associated Press has caught up to the story:
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.
Er, maybe the AP could have asked that question a few months ago. Three months ago, Cato’s Chris Edwards had not only identified the provision, but the potential scope of the problem. It would have been even more helpful to have had a debate on this provision earlier than that — oh, say, before Congress passed ObamaCare and Barack Obama signed it into law.
Instead, Democrats now need to either find new revenue to replace the $19 billion or make a commensurate amount of cuts, thanks to their Pay-Go rule and their no-deficit pledge for ObamaCare. Guess which approach they took?
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