U.S. Rep. Steven C. LaTourette, R-Bainbridge Township, today voted to repeal a tax requirement in the new health care law that would require businesses to file a 1099 tax form with the IRS for every vendor they paid more than $600 a year.

The measure, H.R. 4, passed in the U.S. House of Representatives by a vote of 314-112. It now goes to the U.S. Senate for consideration.

The Senate earlier this year passed 1099 repeal language as part of a Federal Aviation Administration bill.  The House and Senate will have to hammer out repeal language that is identical in both the House and Senate before a measure can be sent to the President for signature.

In a report released in June 2010, the IRS Taxpayer Advocate said the new 1099 reporting requirement would apply to almost 40 million businesses, including more than 1 million charities and tax-exempt organizations and more than 100,000 government entities.

“The 1099 reporting requirement has nothing to do with health care, and its days are numbered,” LaTourette said. “This would be a compliance nightmare for the IRS, and small businesses should focus on job creation, not filing tax forms reporting the purchase of toilet paper and paper towels from Costco or toner and paper from Staples.”

The congressman said H.R. 4 reduces the deficit by $166 million in the first 10 years, and is expected to reduce federal spending by nearly $20 billion over 10 years.

-- John Arthur Hutchison
JHutchison@News-Herald.com
Twitter: newsheraldjah

State Sen. Tim Grendell continues to be upset over the fact that Ohio Attorney General Richard Cordray won’t join in a lawsuit with other state attorney generals who oppose the new federal health care law.

At least 14 state attorney generals have signed on to the the court action to claim the legislation has no constitutional merit.

Grendell, R-Chester Township, also has introduced legislation, Senate Bill 224, that would make it Ohio’s policy for people living in the state to be able to choose not to have health insurance.

It also would ensure that Ohioans are not assessed a fine or fee as a result of their choice.

“It is most unfortunate for Ohio that Attorney General Cordray is no longer acting as the lawyer for the people of Ohio,” Grendell said. “Instead he now acts as a federal judge who is unilaterally passing judgment on the constitutionality of the abusive federal healthcare bill, instead of letting Ohioans have the constitutionality of that legislation tested in federal courts."

Cordray, a Democrat who is seeking re-election, said he drew upon his experience as an appellate lawyer and law professor to research the request and make his decision.

“Based on my review of Ohio law and H.R. 3590, and my experience with federal constitutional law, I do not believe that the lawsuits filed against the Patient Protection and Affordable Care Act have any legal merit whatsoever,” Cordray said. “As a result, I believe it would be a waste of taxpayer resources for Ohio to join any such lawsuit, and we will not be doing so.”

-- John Arthur Hutchison
JHutchison@News-Herald.com