Obamacare’s 1099 Provision Repealed By The Senate
The infamous 1099 provision would have required billions of additional tax filings each year as businesses would be required to issue and/or fill out a 1099 for any other business entity or individual they did more than $600 worth of business with.
The House passed the same repeal previously as one of their first acts of the new Congress, and now that the Senate has passed it this repeal will go to the President who has indicated that he’s supportive of the change.
WASHINGTON — Congress sent the White House its first rollback of last year’s health care law today, a bipartisan repeal of a burdensome tax reporting requirement that’s widely unpopular with businesses. Even President Barack Obama is eager to see it gone.
The Senate voted 87 to 12 to repeal the filing requirement, which would have forced millions of businesses to file tax forms for every vendor selling them more than $600 in goods each year, starting in 2012. The filing requirement is unrelated to health care. However, it would have been used to pay for part of the new health law.
Republicans hope it is the first of many such bills, resulting in the entire health care law being scrapped. Democrats say the bill is part of an inevitable tinkering that will be needed to improve the health measure.
“We are pleased Congress has acted to correct a flaw that placed an unnecessary bookkeeping burden on small businesses,” said White House spokesman Jay Carney. Of course, admitting that Obamacare was “flawed” and needed tweaking has long been a strategy of Democrats. They’ll say that the law just needs fixes, not repeals, and heading into the 2012 election season the talking point will be that they have listened to the people and enacted those fixes.
Then they’ll point to this bill.
Even so, this is a fix that needed to happen. A rare, small moment of Congress getting something right for a change.Tags: irs, obamacare, Taxes