More hidden costs and mandates discovered in ObamaCare…
Posted by iusbvision on May 13, 2010
1. First the CBO said that ObamaCare would raise insurance costs per family by $2100 a year, then the Oliver Wyman study said it would raise rates by up to 54%. So what happened? The Administration and the elite media said that bloggers like me were liars and they called us all sorts of names and accused us of spreading disinformation.
3. Then all of the sudden the elite media largely went silent on the issue (for a while till…).
4. The New York Time starts running a series of articles admitting many of the problems and costs with ObamaCare legislation as if they had discovered them anew. The NYT basically admitted that blogs like this one were right all along; without giving us credit of course.
5. The Medicare Actuary of the HHS published a report that the administration had managed to delay in its release till after the final vote admitting that the costs were much more than the Democrats admitted and they knew it. The House Ways & Means Republican Staff published a report with the new taxes that came with the legislation and the CBO published another report stating that the Obamacare tax increases would very much impact those who make less than $200,000 a year – LINK.
6. HHS Secretary Kathleen Sebelius admitted that the administration has no clue how much the ObamaCare ‘High Risk Pools’ will actually cost – VIDEO
7. The Cato Institute reported on a little known, burdensome and expensive reporting mandate in the new ObamaCare bill. Every company that spends more than $600 to vendors and suppliers will now have to submit to them and the IRS a 1099 form every year:
Most people know about the individual mandate in the new health care bill, but the bill contained another mandate that could be far more costly.
A few wording changes to the tax code’s section 6041 regarding 1099 reporting were slipped into the 2000-page health legislation. The changes will force millions of businesses to issue hundreds of millions, perhaps billions, of additional IRS Form 1099s every year. It appears to be a costly, anti-business nightmare.
Under current law, businesses are required to issue 1099s in a limited set of situations, such as when paying outside consultants. The health care bill includes a vast expansion in this information reporting requirement in an attempt to raise revenue for an increasingly rapacious Congress.
Basically, businesses will have to issue 1099s whenever they do more than $600 of business with another entity in a year. For the $14 trillion U.S. economy, that’s a hell of a lot of 1099s. When a business buys a $1,000 used car, it will have to gather information on the seller and mail 1099s to the seller and the IRS. When a small shop owner pays her rent, she will have to send a 1099 to the landlord and IRS. Recipients of the vast flood of these forms will have to match them with existing accounting records. There will be huge numbers of errors and mismatches, which will probably generate many costly battles with the IRS.
Tax CPA Chris Hesse of LeMaster Daniels tells me:
Under the health legislation, the IRS could be receiving billions of more documents. Under current law, businesses send Forms 1099 for payments of rent, interest, dividends, and non-employee services when such payments are to entities other than corporations. Under the new law, businesses will be required to send a 1099 to other businesses for virtually all purchases. And for the first time, 1099s are to be sent to corporations. This is a huge new imposition on American business, costing the private economy much more than any additional tax that the IRS might collect as a result.
8. The CBO then tells us that Medicare Payment ‘Doc Fix’ will be more expensive than expected – LINK – which by the way conservatives predicted early on.
9. The State of Indiana hired the consulting firm Milliman Inc. to provide the state with an estimate of what the new ObamaCare mandates on the state will be and how it may impact the Indiana budget. The result is not pretty. Milliman estimates that the new mandates will cost the Indiana $3.6 billion over ten years and will result in approximately 1 in 4 Hoosiers will in some way be subsidized by the program. Imagine what that will do to the state budget and to things such as education funding. But hey, why raise taxes when the feds can pass unfunded mandates on the states and force them to raise taxes to pay for it.