Are Republicans finally getting serious about repealing Obamacare?
One of the issues that many Republicans ran on during the 2010 election cycle was their support of repealing or defunding Obamacare but so far they have not been willing to do either. The House did manage to pass a measure to repeal Obamacare but it was not much more than a publicity stunt as the measure stood no chance of passage in the Senate. But has that changed? Are Republicans finally getting serious about repealing and/or defunding Obamacare?
Two reports today indicate that the Republicans are finally making their move on Obamacare. Earlier today the Congress passed a bill which would repeal two aspects of Obamacare and the bill will be headed to Barack Obama for his signature or veto. Included in this bill is the repeal of a paperwork requirement which would mandate small businesses to file 1099 tax forms for every person under their employment who makes at least $600. This measure was considered to unfairly burden small businesses and its repeal had always had bipartisan support.
Why did it take this long to repeal an aspect of Obamacare that both parties and the president realized needed to be repealed? The answer is politics. Both parties supported this move, but both blocked the repeal when they felt that the other party would benefit politically from the repeal. Both parties had been putting politics above the interests of small businesses and the American people and I find this show of contempt and disregard for the good of the American people to be utterly inappropriate and disgusting. Finally today the politicians in Washington put the interests of the American people ahead of their own personal political goals.
However, the final outcome of this bill is still in doubt because of the second aspect of Obamacare to be repealed which the Congress passed today, and that is the issue over how healthcare subsidies are paid for. Here is the issue at hand:
Under current law, consumers are allowed to keep much of the money when the government overpays them, but the new bill would claw back most of that money from taxpayers
As one who believes that the federal government is robbing the American people of their hard earned money the fact remains that under the law if the government overpays an American citizen, that person should be required to give that overpayment back but apparently that is not the case with Obamacare. This second provision in the bill would require American citizens who receive money from the government that they do no deserve to give that mony back. That seems like a reasonable position to me but both the Democrats in the Congress and the president do not agree. Because of this there is the chance that Barack Obama could veto this bill and once again the small businesses will fall victim to partizan politics under the 1099 provision in the Obamacare law.
The Republicans are calling this a “down payment” on the full repeal of Obamacare
Sen. Orrin G. Hatch, Utah Republican, called the bill “a down payment on total repeal of the onerous health care law.”
They are claiming that this is only the beginning of a systematic dismantling of Obamacare which they will achieve on small piece at a time.
The Republicans also offered a budget for the fiscal year 2012 which will totally defund Obamacare.
The Republican proposal says one of its aims is “making sure that not a penny goes toward implementing the new [health care] law” enacted last year.
This includes repealing about $800 billion in new taxes that were built into the law.
The proposed Republican budget resolution lists as one of its “key objectives” that it “Repeals and defunds the President’s health care law, advancing instead common-sense solutions focused on lowering costs, expanding access and protecting the doctor-patient relationship.”
“There is no way for ‘experts’ in Washington to know more about the health care needs of individual Americans than those individuals and their doctors know,” says the proposal. “The new health-care law, rammed through Congress last year on a partisan vote, has taken the nation one step closer to this fully government-run system.
“The problems with this approach are already popping up all over the country,” says the proposal. “Health care costs continue to escalate relentlessly. The new law has aggravated the worst aspects of the U.S. health care system, without fixing what was broken. The country needs to move away from this centralized system, not towards it.
“This budget starts by repealing the costly new government-run health care law, saving roughly $725 billion over ten years by repealing the new exchange subsidies and making sure that not a penny goes toward implementing the new law,” says the resolution. “Then, this budget goes further with reforms that make government health-care programs more responsive to consumer choice.”
This is also being talked about by Republicans as part of the systematic dismantling of Obamacare:
“The health-care law enacted last year contained roughly $800 billion in new taxes and tax increases–the result of dozens of changes to tax law that added complexity and unfairness to the code.” The proposal calls for repealing all of these new taxes and tax increases as part of repealing the entirety of the Obamacare law.
So the question in my mind is; how serious are the Republicans about this? It seems to me that there is about a 50/50 chance that the 1099 repeal will go into effect as I think the president may be willing to compromise the subsidy funding for the very popular 1099 repeal, but what chance does the 2012 budget stand to pass if it includes a defunding of Obamacare?
We all know that there is no way in hell that the Democrats are ever going to agree to a budget which defunds Obamacare but if the Republicans are serious about this it could have repercussions in the 2012 elections which will make the defunding and repeal of Obamacare possible. The Republicans know that they cannot achieve this goal with the Senate as it is currently constituted, but if they can make this an issue moving into the 2012 election cycle there is the chance that they could pick up enough seats in the Senate to pull this off, and I think that is exactly what they are looking at with this move today.
I think that the Republicans are finally starting to get serious about this issue–and I also feel as if they probably waited until the 2012 election cycle started to gear up–and intend to make this a political issue in the next election. The Republicans know that they cannot either defund or repeal Obamacare–yet–but if they can convince the American people they are serious about this issue there is the very real chance that the Republicans can pick up enough seats in the Senate to repeal this unpopular bill.
The Republicans will be attacked and demagogued for this position by the Democrats, but if they hold true to this position they may be able to convince the American people that they are serious about this. Then and only then will they be able to actually pull this off. This is the beginning of a long battle, but it seems as if it is finally underway.

At this point in time, Steve, I can’t tell if the Republicans are serious or not. We need to know at a little about what their plan is for future budgets. Also, I worry they are still playing politics by call their proposal a “reduction” in spending. It is no such thing. Obama’s budget calls for increasing spending by $ 10 trillion over ten years. Ryan’s plan calls for reducing this Obama’s increase from $10 trillion to $6 trillion; i.e., there is still a 46 trillion increase in spending in the republican budget over ten years. We all know the Republican budget will be negotiated to some higher number. I would be pleased with this as a start in the right direction if they had said that each of the next six budgets they reduce (really reduce) spending relative to this proposed budget by X trillion dollars per year until we have a balanced budget.
LikeLike
I agree, it seems as if this is a political ploy which is timed perfectly for the upcoming elections. It will be interesting to watch as this moves along to see if they are really serious about this.
LikeLike
Steve, all businesses already have to file either a W2 form for everyone in their employ, regardless of how much they earn. Form 1099s are filed for independent contractors who earn $600 or more in a year.
The provision in Obamacare that generated all the angst was that every business would have to file a 1099 for everyone to whom they disbursed $600 or more during the year. That included all business-to-business transactions, not just those involving independent contractors. Thus, the dentist who hires a landscaping service to take care of the grounds around his office would have to issue a 1099 to the landscaping service. If he hired an electrician to come in and cable up a new examining room, if the bill came to $600 or more, a 1099 would have to be issued at the end of the year.
This was said to be a real onerous burden on business – I’m not so sure about that, considering that most businesses use computer-based accounting software.
The problem with repealing is that when you remove a revenue item from a bill, you’ve got to replace the revenue somehow. The Dems, bless their pointed little heads, estimated that their little gimmick would raise $20 billion or so in revenue – they claimed the money reported would otherwise go unreported. Anyway, to remove the 1099 requirement, Congress had to come up with a way to replace the $20 bil it was “eliminating” from Obamacare.
I think Pelosi, Reid and the rest of the Dems should be particularly ashamed of themselves for that little stunt, because they “created” $20 billion in imaginary revenue, and when it was removed from the Act, it had to be replaced with very real money. And that’s the reason for the second provision of this repeal measure.
Bottom line? The 1099 requirement wasn’t going to generate anywhere near $20 billion in new revenue – in fact, this new measure, requiring that overpayments be refunded, may likely produce far more revenue. IMO, of course.
Take good care and may God bless us all!
TGY
LikeLike
Both sides and the president seem to agree that this 1099 provision in the healthcare reform law was onerous to small businesses and the fact that both sides agree, I find it highly likely that this is true. If this is the case this should have been repealed before now, but both sides have blocked this when they thought the other side would gain politically from it and I think that it is despicable that neither side was willing to pass it before now because they were afraid of the political scorecard.
LikeLike
The 1099 provision wouldn’t have had small business owners spending hours c reating 1099s is all I’m saying.
The biggest obstacle to repealing the 1099 provision wasn’t so much political will, though, as it was finding a way to account for the $20 billion in revenues the 1099 provision supposedly represented.
LikeLike
I got the political angle of the 1099 repeal from this article, here is part of the article:
“Repealing the 1099 provision would cost about $19 billion. Democrats and Republicans alike have made multiple attempts to repeal the tax reporting requirement, which small businesses say is far too burdensome and even the IRS has suggested wouldn’t raise as much money as the health care reform law’s authors hoped.
But both parties, and both chambers of Congress, have played politics with the repeal, offering amendments or bills paid for with provisions they knew the other party would never accept.”
You may be right about the costs, but I do believe that there has been politics in play on this issue as well.
LikeLike
If you notice, the 1099 provision was put in place to pay for ObamaCare by fining businesses. I’m not so sure that it would be as easy to crank out 1099 by computer as some suggest. I know I have to do them by hand, or at least determine which purchases I’ve made need 1099s.
LikeLike
Balancing Obamacare on the backs of the small businesses? Where is the outrage?
LikeLike
I have small business owners in my family. Both say that they would spend hours and hours doing 1099s. Big companies can afford the expense. Small ones, not so much.
LikeLike
Get ready for a lot of articles about the shut down. Times may have changed since Newt and Bill faced off.
LikeLike
You may be right, and I also don’t think that a shutdown would hurt the Republicans as much as the media would have us believe.
LikeLike
The MSM is already doom and gloom. I was making supper tonight, and I don’t have Direct TV in the kitchen, so I watched ABC Nightly News. It was mostly “OMG people will suffer.”
LikeLike
They are trying to make this a doomsday prediction in order to scare the Republicans out of making the cuts, as well as trying to scare the people into supporting the Democrats. I am not sure it is going to work.
LikeLike
Great post. I enjoyed reading your work.
LikeLike
If not, they need to be, but the GOP is NOT showing the strength that I was hoping for…
LikeLike
They have been disappointing and it is time for them to stand up and fight.
LikeLike
One of the radio programs had a quote used back in the ’90’s about the National Parks and especially Grand Canyon and how no could visit with the shut down. Obama used the exact same words. So he really is a borg, pre-programed!
LikeLike
The same old talking points.
LikeLike