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Member, Beacon International Group, Ltd.
WASHINGTON—The Senate last week turned back the first legislative efforts to repeal a portion of the health care reform law.
Two amendments—one proposed by Finance Committee Chairman Max Baucus, D-Mont., and the other by Sen. Mike Johanns, R-Neb.—to repeal a requirement that employers furnish 1099 tax reporting statements if they do more than $600 in business with a corporate vendor—failed to win enough votes to be attached to a food safety bill. The Senate approved the food safety measure, S. 510, last week.
Small employers have complained that the reporting burden of the health care reform law requirement, which is scheduled to go into effect in 2012, is too great.
While there is broad congressional support for repealing the requirement, the amendments failed for reasons unrelated to the health care reform law, Washington observers say. Democrats, for example, were concerned about language in Sen. Johanns' amendment giving new authority to federal regulators to cut government spending.
Despite the setback, new proposals to repeal the 1099 reporting requirements are expected soon.
“Small business owners voiced legitimate concerns that these requirements would be burdensome, and the Senate should act in response to those concerns. I am disappointed that we weren't able to repeal these requirements today, but I intend to keep working until we do,” Sen. Baucus said in statement.
The reporting requirement would raise about $2 billion a year, according to estimates by the congressional Joint Committee on Taxation.
President Barack Obama has said he would consider changes to the 1099 reporting requirement.