Tuesday, September 14, 2010

Bennet Flip-Flops on 1099’s

The details surrounding Bennet’s new-found support of small business show he’s all politics

Denver, CO—Appointed Sen. Michael Bennet surprised some by actually supporting a measure that would help small businesses today. Unfortunately, the details surrounding Bennet’s new-found support of small business show he’s all politics.

In order for the health care reform package that Bennet rubberstamped to be “budget neutral,” he supported a requirement that would force small businesses to file a Form 1099 for any purchase over $600 annually. That means small businesses will have to spend countless hours and dollars filing their tax returns---literally 100's of 1099 filings each year.

The idea behind the onerous 1099 provision was to increase tax revenues to the tune of $19 billion. But just like the "doc fix" Bennet voted for before he voted against, Bennet voted for the 1099 burden in the healthcare bill before he voted against it today.

“Where does Washington come up with these terrible ideas?” asked John Swartout, Buck for Colorado’s campaign manager. “It’s as though they are trying to kill jobs just to protect their pet projects—in this case, it was the wildly unpopular Obamacare bill."

Swartout continued, "Bennet knew the day he voted for the healthcare bill that it would increase the deficit. Yet Bennet continued to call Obamacare a deficit reducer, touting the sham CBO number. Coloradans deserve more honesty from their senator---even an appointed one."

Today, Bennet was one of the last senators to vote. After it became apparent to Bennet that the measure was going to fail, he voted “yea.”

“Bennet is all politics,” added Swartout. “If he really supported small businesses, he would have stood on the Senate floor and fought against this job-killing measure when it was included in the health care reform bill and he would have spoken out in favor of the Johanns amendment today, not run up to the desk and vote after it became clear that the measure would fail.”

This isn’t the first time that Bennet played politics with his votes. In 2009, Bennet voted in favor of a Second Amendment bill only after asking for permission from Sen. Chuck Schumer, D-NY.

Dana Milbank of The Washington Post reported—

“Other Democrats, such as Pennsylvania's Bob Casey and Colorado's Mark Udall and Michael Bennet, were said to have been willing to vote 'no' if necessary. Twenty minutes after the voting began, Bennet and Udall left the cloakroom together and walked into the chamber. Bennet went to the well to consult with Schumer, who indicated that it was safe for Bennet -- a product of D.C.'s St. Albans School -- to vote with the NRA. Bennet looked to Udall, who gave an approving nod, and cast his 'aye' vote.”

“Of course, Bennet's flip-flops shouldn't surprise Coloradans," said Swartout. "He was opposed to Obama's latest stimulus before he had to rethink it. He was opposed to extending the Bush tax cuts before he said he needed more time. He hasn't even tried to lay out a plan for deficit reduction or entitlement reform. And no one knows where Bennet stands on Card Check, even as he receives tens of thousands of dollars from Big Labor. Coloradans are fed up and can't wait for a change on November 2."

Today Appointed Sen. Michael Bennet Voted To End Debate On Legislation That Would Eliminate A Burdensome 1099 Filing Requirement For Small Businesses:

“The Senate Will Resume Work This Morning On A Bill To Aid Small Businesses. The Package Includes Incentives Such As A $30 Billion Lending Fund For Banks To Increase Loans And Tax-Write Offs On New Investments.” (“Senate Focuses On Small Business Bill,” C-SPAN.org, www.c-span.org, Accessed 9/10/10)

“Among The Votes Scheduled On The Bill Is A Procedural Motion On An Amendment Sponsored By Senator Mike Johanns (R-NE).” (“Senate Focuses On Small Business Bill,” C-SPAN.org, www.c-span.org, Accessed 9/10/10)

“The Johanns Amendment Is Aimed At The New Health Care Law And Seeks To Repeal A Tax Provision That Requires Anyone Purchasing More Than $600 Worth Of Goods From A Vendor To File An IRS Form.” (Jay Heflin, “Small-Business Council Rallies Support For Johanns’s Repeal Of 1099 Rule,” The Hill, thehill.com/blogs, 9/10/10)

· “The New Healthcare Law Requires Organizations To Fill Out Form 1099 For Any Purchase Of At Least $600 And Report It To The IRS Beginning In 2012.” (“Senate Focuses On Small Business Bill,” C-SPAN.org, www.c-span.org, Accessed 9/10/10)

Bennet Voted In Favor Of Ending Debate On The Amendment That Would Repeal The Burdensome 1099 Requirement. “Motion to Invoke Cloture on the Johanns Amdt. No. 4596, as modified, to H.R. 5297; To repeal the expansion of information reporting requirements for payments of $600 or more to corporations, and for other purposes.” (S. Amdt 4595 To HR 5297, Vote 231: ­­46 Yea – 52 Nay – 2 Not Voting, Motion Rejected, Bennet Voted Yea, 9/10/10)

Placing The Burden On Business, The 1099 Rule Was Intended To “Be A Fund-Raiser For The Rest Of The Healthcare Bill”:

“The Section Was Intended To Be A Fund-Raiser For The Rest Of The Health Care Bill; It Was Projected To Deliver $19 Billion Over The Course Of 10 Years By Making It More Difficult For Businesses To Keep Income Unreported.” (Robb Mandelbaum, “Will Congress Ease 1099 Requirements in Health Care Bill?” The New York Times, 8/9/10)

Small Business Groups “Assailed The New Provisions”; They Favor The 1099 Repeal Claiming The Requirement Would Have Been “Onerous And Costly On Business”:

“But Business Groups Assailed The New Provisions.” (Robb Mandelbaum, “Will Congress Ease 1099 Requirements in Health Care Bill?” The New York Times, 8/9/10)

Bill Rys, Tax Counsel For The NFIB Called The Provision “Unmanageable.” Bill Rys: “This is absolutely unmanageable. ... It’s not just the amount of time and money businesses will have to spend, but all that goes with collecting this information. Who do you send it to? What do you do with employees who travel and are making purchases on the road?” (Robb Mandelbaum, “Will Congress Ease 1099 Requirements in Health Care Bill?” The New York Times, 8/9/10)

The Small Business And Entrepreneurship Council Supports The Repeal Of The 1099 Rule. “In preparation for the upcoming Senate debate on the small-business bill, the Small Business and Entrepreneurship (SBE) Council is asking members to contact their senators and urge them to support an amendment by Sen. Mike Johanns (R-Neb.) that repeals the 1099 rule.” (Jay Heflin, “Small-Business Council Rallies Support For Johanns’s Repeal Of 1099 Rule,” The Hill, thehill.com/blogs, 9/14/10)

· “The Requirement Was Created To Improve Tax Compliance, But Several Business Groups And Tax-Policy Experts Have Said That It Will Be Onerous And Costly On Businesses.” (Jay Heflin, “Small-Business Council Rallies Support For Johanns’s Repeal Of 1099 Rule,” The Hill, thehill.com/blogs, 9/14/10)

“Suggesting That Democrats Are Acknowledging The Failure Of Their Predictions,” Democrats Are No Longer Addressing The Cost-Savings Aspect Of The Health Care Bill:

“New Dem Message: ‘Improve’ Health Care, Don’t Talk Cost.” (“New Dem Message: ‘Improve’ Health Care, Don’t Talk Cost,” The Politico, www.politico.com, 8/19/10)

“Key White House Allies Are Dramatically Shifting Their Attempts To Defend Health Care Legislation, Abandoning Claims That It Will Reduce Costs And Deficit And Instead Stressing A Promise To ‘Improve It.’” (“New Dem Message: ‘Improve’ Health Care, Don’t Talk Cost,” The Politico, www.politico.com, 8/19/10)

“The Messaging Shift Was Circulated This Afternoon On A Conference Call And Powerpoint Presentation Organized By Families USA — One Of The Central Groups In The Push For The Initial Legislation.” (“New Dem Message: ‘Improve’ Health Care, Don’t Talk Cost,” The Politico, www.politico.com, 8/19/10)

The Presentation Suggested “Democrats Are Acknowledging The Failure Of Their Predictions That The Health Care Legislation Would Grow More Popular After Its Passage.” “The confidential presentation, available in full here and provided to POLITICO by a source on the call, suggests that Democrats are acknowledging the failure of their predictions that the health care legislation would grow more popular after its passage, as its benefits became clear and rhetoric cooled.” (“New Dem Message: ‘Improve’ Health Care, Don’t Talk Cost,” The Politico, www.politico.com, 8/19/10)

“Instead, The Presentation Is Designed To Win Over A Skeptical Public, And To Defend The Legislation — And In Particular The Individual Mandate — From A Push For Repeal.” (“New Dem Message: ‘Improve’ Health Care, Don’t Talk Cost,” The Politico, www.politico.com, 8/19/10)