President Obama signed off on the 1099 tax repeal Friday.
This little-known provision in the Patient Protection and Affordable Care Act saddled small business with the onerous obligation to report any vendor expense more than $600 in a calendar year.
We actually reported on this last week, when Congress sent the repeal to the president’s desk.
While I can respect the democrats – and especially the president – when they admit they’re wrong, this particular clause shouldn’t have made it this far to begin with. At a time when small businesses are struggling enough as it is, this mandate would have added mounds of paperwork to an already overburdened chunk of the economy.
Of course, to pay for revenue lost with this repeal, the president also had to stomach provisions curtailing some health insurance tax credits.
This certainly isn’t the beginning. And we’re a long way from the end. We’ll see more revisions, corrections and flat-out backtracks over the next few years as Congress and their appointed regulators realize what they’ve passed in this legislation.
But this is a step in the right direction. All we can hope for now is that we don’t stumble two steps back next week.