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By Rep. Paul Anderson
We seem to have been slammed directly into winter. Icy roads and sidewalks, along with cold, snow, and wind, have all combined to leave memories of a beautiful fall season well in the rearview mirror. Here’s hoping your loved ones traveled safely, and that a wonderful Thanksgiving was had by all.
Employees receiving information about health plans for the coming year are hearing about some of the provisions of the new, federal health insurance law. Although most changes won’t go into effect until 2014, there are some that take place with the new year. Among the revisions going into effect in 2011 is one that allows children up to the age of 26 to be listed on their parents’ policy, regardless of their student or marital status. In addition, there will no longer be any dollar limits placed on lifetime medical benefits. Another change, one that affects those with Health Spending Accounts, is that over-the-counter medications are no longer an eligible expense.
One of the more “silent” provisions of the legislation, one that pertains to tax reporting, goes into effect one year from now, on Jan. 1, 2012. According to Section 9006 of the 2,409-page law, all businesses will be required to issue 1099 tax forms, not only to contractors, but to any individual or corporation from which they buy more than $600 in goods or services in a tax year. Under current law, 1099’s need only be issued to individuals and not corporations. This new provision not only means a much higher number of forms being sent through the mail, but, even more burdensome, it requires a huge increase in data collection, such as gathering names and tax I.D. numbers for every payee and vendor. One estimate predicts as much as a five-fold increase in 1099 filings once the new law takes effect. According to a spokesman for the National Federation of Independent Business, it’s a pretty heavy administrative burden, particularly for small businesses without large in-house accounting departments.
Although final regulations regarding this new provision have not yet been released by the IRS, legislation has already been introduced in Congress that would repeal this part of the law. At this time, more than 50 members of the House have signed on as co-sponsors.
A large gathering honored longtime educator Myrtle Vander Beek last week end in Glenwood, the occasion being her 100th birthday. I had the pleasure of having her as my sixth grade science teacher many years ago at Starbuck. Myrtle’s career in education began in the early 1930’s at the Lake Johanna Township School in southern Pope County and didn’t end until her retirement in 1975. In addition, following her formal retirement, she traveled to Arizona and taught at the Sun Valley Indian School for four years. Mrs. Vander Beek was an outstanding teacher, one who made learning fun and interesting. It was a pleasure visiting with her again.
Members of the Legislature hear much testimony and read many, many documents during the course of a session. One day, during a hearing in the Education Committee, I heard a saying that stuck with me. It’s simple yet contains a good message. Here it is:
“Opportunity is missed by many because it often comes dressed in overalls and looks a lot like work.”
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