From Alex Swoyer, at breitbart.com:
Establishment Republicans desperately trying to secure the passage of Trade Promotion Authority (TPA), which would give President Obama fast-track authority to secure congressional approval of at least three secretive trade deals, are now willing to increase taxes on small businesses in a way that would violate a pledge almost every Republican Congressman has taken when elected into office.
To secure final passage through Congress of a package that would include TPA fast-track authority—which would ensure finalization of the secretive Trans Pacific Partnership (TPP), Transatlantic Trade and Investment Partnership (T-TIP) and Trade in Services Agreement (TiSA), among other deals—the House would need to pass the Trade Adjustment Assistance (TAA) package that was necessary for Senate passage of TPA. The House voted TAA down 302-126 with widespread bipartisan opposition to last week, but House Ways and Means Committee chairman Rep. Paul Ryan (R-WI) and his allies in House GOP leadership have pledged that they will try to pass it again early next week. The vote would potentially be on Monday, but more likely on Tuesday—and if there is no vote by Tuesday, it’s unlikely that Ryan will be able to succeed in his ploy to revive TPA.
TAA is a big government program usually favored by Democrats—it increases the size and scope of government, and is essentially viewed by Republicans as a welfare program—so their opposition to it during Friday’s complicated and confusing House vote schedule was not opposition to TAA as a specific concept, but opposition to the full Obamatrade package, especially TPA.
House Minority Leader Rep. Nancy Pelosi (D-CA) gave a blistering floor speech against the full Obamatrade deal, causing a Democratic rebellion against TAA—and forcing Ryan to push Republicans to vote for that part of the package.
TAA was originally supposed to be financed with Medicare cuts – which sparked major outrage, and cries of hypocrisy in what would have certainly turned into boldly negative campaign advertisements against Republicans by Democrats this next cycle. But under pressure, Republican leadership, mainly Boehner and Ryan, negotiated with Democrats to remove the Medicare cuts from the financial backing of TAA and instead using direct tax hikes by raising the penalties for misfiled taxes.
“A vote for Obamatrade on Tuesday is a vote to give the IRS more power and more incentives to go after small businesses,” said Curtis Ellis, founder of the Obamatrade.com website, in an exclusive interview with Breitbart News.
Democrats overwhelmingly opposed TAA Friday after Pelosi voiced opposition to giving President Obama fast-track trade authority.
“So while I am a big supporter of TAA, if TAA slows down the fast-track, I am prepared to vote against the TAA because then its defeat, sad to say, is the only way that we will be able to slow down the fast-track,” Pelosi said just minutes before the crucial vote. She concluded: “The facts are these: If TAA fails, the fast-track bill is stopped.”
“It’s pretty outrageous what is called for in this bill that Congress is going to vote on Tuesday – it literally doubles and triples the taxes on small businesses,” explained Ellis.
Ellis spent hours researching this legislation and explained to Breitbart News how it could impact small business taxes if Congress passes the TAA during its vote on Tuesday.
“Small businesses that are already over-burdened with IRS paperwork will be penalized even further if they make a technical mistake on filing informational paperwork,” he said. “There’s a lot of dishonesty going on when the bill is described as raising the fines on tax violations. That’s dishonest because the fines aren’t for people who failed to pay their taxes, the fines are on businesses that for no fault of their own, they forget to fie a piece of paperwork telling the IRS how much someone else owes on their taxes.”
“It’s outrageous that Republicans who complain all the time – rightfully so – about the IRS’s overreach and over burdening small business are actually increasing the incentive for the IRS to spy on people – to spy on small businesses,” he added.
Essentially, as explained by Ellis, any time a small business paid an independent contractor or freelancer a commission or any tips, it must be reported to the IRS with a 1099 form, which a copy is also sent to the contractor or freelancer. If the small business is late in filing this form, then it is fined by the IRS. The proposal Tuesday, as it stands, would double and triple these fines.
“It is the height of cynicism for Congress to plan on paying for a welfare program for unions by increasing the penalties for small businesses,” Ellis reacted.
President of Americans for Limited Government Rick Manning agrees with Ellis about this increasing penalty being a tax increase on small businesses.
“There is no question that raising the penalty on small businesses who commit a paperwork error is a tax increase. It is directly intended to raise revenues, so it can’t be considered anything else. For Republican leadership to ask their members to vote to raise taxes on small business to fund a union bailout that Big Labor doesn’t want is both horrific policy and terrible politics,” Manning told Breitbart News.
This program was so unpopular with both Democrats and Republicans that they removed it from Obamacare.