We just got word that the Senate may be voting on two versions of repealing the Obamacare "1099-MISC" information reporting requirement.
To recap, this tax hike in Obamacare would require that all businesses issue a 1099-MISC tax form to any person or business with whom they do at least $600 in total business over the course of the year. That means gathering tax information and issuing tax forms to every airline, restaurant, office supply store, car rental agency, etc. with whom your small business does business.
Even the IRS says they can't comply with all the resulting paperwork.
There are two amendments at the desk which would repeal this tax hike on America's small businesses. Senator Debbie Stabenow (D-Mich.) would repeal the tax hike and "pay for" it with a spending rescission. So, a win-win.
Unfortunately, Senator Carl Levin (D-Mich.) also has an amendment that would repeal the tax hike, but replace it with another series of tax hikes on energy companies. This would result in higher energy prices for all Americans.
The best solution is to repeal the 1099 provision. A spending cut would be nice, but not necessary. Another tax hike is a total non-starter.