Obamacare’s anti-business tax provisions

Mulvaney: “Did John Spratt know this burden was included in the bill when he voted for it?  If so, why did he do this to our job creators?”

Lancaster, S.C. – August 3, 2010 - State Senator Mick Mulvaney, Republican candidate for Congress (SC-5), today released the following statement regarding the numerous tax provisions – especially the expanded 1099 tax form mandates – within the Patient Protection and Affordable Care Act that are unrelated to health care reform:

“Not one single person, including John Spratt, understood how Obamacare was going to affect our country before it was passed.  Unfortunately for millions of businesses, charities, and other organizations, they are now realizing that Obamacare includes new tax regulations that will mean more paperwork and higher fees.

“By burying struggling businesses under piles of new paperwork and fees with his support for Obamacare, Congressman Spratt has certainly failed the principle medical ethic ‘do no harm.’  As a businessman, I understand that small businesses work hard just to make ends meet.  The federal government should be searching for new pro-business, pro-jobs policies, not anti-growth taxes.

“Hopefully, Mr. Spratt will inform his constituents that the new ‘1099’ regulations were mistaken, and that he did not intend to lay such expensive fees on the backs of this District’s businesses.  But for now, these questions remain unanswered: Did John Spratt know this burden was included in the bill when he voted for it?  If so, why did he do this to our job creators?”

A 1099 tax form is an informational form used to report types of income other than wages, salaries, and tips.  Many businesses must send in thousands of these forms each year already.  Furthermore, according to the Internal Revenue Service, these new tax mandates present the following concerns, as well as many more:

• A provision in the Patient Protection and Affordable Care Act (PPACA), enacted in March of this year, added a new information reporting requirement that may present significant administrative challenges to taxpayers and the IRS. In particular, businesses will have to issue Forms 1099 for goods purchased after 2011, regardless of the corporate form of the vendor. The Office of the Taxpayer Advocate is concerned that the new reporting burden, particularly as it falls on small businesses, may turn out to be disproportionate as compared with any resulting improvement in tax compliance.  [Page 21]

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