Consultant: 1099 repeal seems likely
Is the repeal of health care’s 1099 expansion imminent? Towers Watson consultant Regina Ihrke thinks so.
During her presentation during True Value’s Spring Market, Ihrke interpreted remarks in President Obama’s State of the Nation address as a signal that the 1099 provision buried deep in the health care legislation will be repealed within the next year.
"This was snuck in there, and it would be administratively burdensome, especially for all small employers out there," Ihrke said. "I think he tried to make that point without saying those words."
The 1099 expansion — a provision calling for all purchases of products or services amounting to $600 or more to trigger the filing of a 1099 form — has been one of the more contentious features of health care reform. Designed to generate more tax revenue, the provision has been blasted by business advocates as a paperwork nightmare for businesses.
Obituary: Sanford Sigoloff
Sanford Sigoloff, a turnaround specialist who worked for Wickes and Builders Emporium, died of complications of pneumonia in his home in Brentwood, Calif., on Feb. 19, according to an obituary in the New York Times. He was 80 years old and also suffered from Alzheimer’s disease.
Singoloff, who liked to call himself “Ming the Merciless” after a character in Flash Gordon, was brought in to re-organize Wickes Cos. in 1981 after the company filed Chapter 11. At the time, Wickes Lumber operated 269 pro-oriented yards in 34 states. Wickes Co. also included Builders Emporium, a 63-unit chain.
Wickes eventually sold off its yards in the mid-1990s.
Sigoloff will be best remembered, at least to many in the home improvement industry, for firing Bernie Marcus and Arthur Blank from Handy Dan, a regional home center chain. Soon after, in 1979, the two men established their DIY concept store called The Home Depot.
Orgill Market draws a crowd
Orlando, FLa. — There were several noteworthy features of Orgill’s 2011 Spring Dealer Market. The aisles were full and suppliers approached by Home Channel News were generally pleased with booth traffic.
Behind the scenes, Orgill CEO Ron Beal said the Memphis-based distributor was working to improve on a record 2010.
"It’s hard to hit home runs, but if we can be 1% or 2% or 5% or 10% better, the cumulative impact of that is very significant," Beal said.
In 2010, all of Orgills’s retail segments — hardware, home centers, pro dealers and farm and ranch — showed sales growth over 2009. The 2010 growth was also evenly dispersed geographically, he said. Dealers continue to face difficult economic conditions, and Beal cautioned against connecting strong show attendance with a turnaround in the economy.
Pre-registration for Orgill’s 2011 Spring Dealer Market here in Orlando was at a record level. Pre-registration was up 20% over Orgill’s all-time attendance record set in 2007.
Ron Beal said discussions with attendees showed a very positive feeling of enthusiasm. But it’s too early to pin that feeling on an economic turnaround. "These are people who have weathered the storm," he said. "They are entrepreneurs and they’re naturally optimists."
Orgill’s recently announced partnership with Canadian LBM distributor Castle Building Centres did, in fact, lead to a spike in Canadian participation. The market brought together more Castle dealers than have ever been brought together in one place — about 150 of them. So far, the partnership is working as expected, Beal said. "The combination of our front end expertise and Castle’s dealer base and their experience and expertise in the building supply area means that together we offer the complete package."
On the market floor here at the Orange County Convention Center, dealers flowed steadily through two model stores that offered merchandising ideas in a simulated retail setting: Beale Street Lumber and Delta Farm & Hardware.