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This is ridiculous. Both Democrats and Republicans agree that the new 1099 reporting requirements included in the healthcare reform bill should be repealed. The pain-in-the-ass factor is simply too high to justify forcing everyone to create the mountains of new paperwork it would require. The problem is that the new requirements essentially raise taxes on contractors and small businesses and this raises revenue. So if you want to repeal the requirements, you need to figure out how to make up the revenue, and Democrats and Republicans have been unable to agree on how to do this.

Yesterday, however, Sen. Max Baucus decided the hell with it. The amount of revenue is tiny (less than $2 billion per year), so why not just repeal the 1099 provision, lower everyone’s taxes, and forget about paying for it? This is an eminently sensible position, since Republicans want the provision repealed and have repeatedly and unanimously taken the position that tax cuts don’t need to be paid for.

So Baucus introduced an amendment to do the deed. And it failed because all but two Republicans voted against it.

Can anyone defend this in any kind of principled way? Republicans are eager to extend the Bush tax cuts on the rich without paying for them, and this will cost over $70 billion per year. Ditto for the estate tax. But the $2 billion 1099 tax? That’s a no go. Gotta be paid for. If I didn’t know better, I’d say that Republicans don’t really want to repeal the 1099 provision at all. They want to keep it around so they have an issue to hammer Democrats with, even if it means voting not to relieve small businesses of a widely cursed new paperwork burden. 

Even for a confirmed cynic, though, this is cynical beyond measure. Anybody got a more Republican-friendly explanation?

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