Senate passes 1099 repeal bill

The Senate voted 87-12 to repeal the unpopular 1099 provision of the Affordable Health Care Act, April 5. This is the first piece of legislation that officially repeals part of President Obama's widely-debated health-care reform movement.

 

Small business owners have expressed their frustration at the provision, which would require them beginning in 2012 to report to the IRS all payments of more than $600 on 1099 forms—work that many small companies just don't have the time or manpower to do.

 

"It's a reporting requirement. I call it a snitch act. It's basically assuming the people you do business with are cheating," said Rep. Dan Lungren (R-CA.) "So therefore, the government requires paperwork on your side because of something they believe may or may not be occurring with respect to somebody on the other side of a business transaction."

 

"The President thinks it's bad. Democrats think it's bad. Republicans think it's bad. Even the Senate thinks it's bad," said. Rep. Charles Boustany (R-LA). "It's taken long enough to move on this. Let's do it. Let's get it done."

 

The bill would have generated an additional $22 billion in tax payments over the next ten years, according to The Washington Post. The president is expected to sign the bill.