1099 Repeal Moves Ahead; Full Health Care Repeal Stalls
Subscribe today for Free Enterprise Updates
- Latest business trends and best practices
- News about legislation and regulation impacting business
- Business how-to articles from industry experts
- Commentary and interviews with newsmakers in business and politics
Small businesses everywhere cheered as the Senate passed a U.S. Chamber-supported amendment that would repeal the 1099 reporting requirement contained in the 2010 health care reform law.
The 1099 mandate, if not repealed, will force more than 40 million entities, including governments, nonprofits, and both small and large businesses, to comply with onerous data collection and IRS information filing burdens for virtually all noncredit card purchases totaling $600 or more with any vendor in a tax year.
“At a time when they can least afford it, entities will have to institute new complex record-keeping, data collection and reporting requirements to track every purchase by vendor and payment method,” the Chamber’s Executive Vice President for Government Affairs Bruce Josten wrote in a February 2 letter to senators. “This provision will dramatically increase accounting costs and could expose businesses to costly and unjustified audits by the IRS.”
The amendment, introduced by Sen. Stabenow (D-MI) during debate on an aviation bill, passed by an 81-17 margin. The repeal would be paid for by requiring the Office of Management and Budget to find the funding in unspent but appropriated funds.
A separate amendment to repeal the complete health care law was introduced by Senator Minority Leader Mitch McConnell (R-KY) but failed 47 to 51.
The House on January 19 pushed through a full repeal bill strongly supported by the Chamber.
“There is no question that the health law threatens the ability of employers to create jobs at a time when our economy is still struggling with high unemployment,” Josten said. “It is time for supporters and opponents of this law alike to acknowledge that this bill has not achieved, and will not achieve, our shared goals of lower costs and higher quality health care for Americans.”
The Chamber is encouraging small business owners to tell their health care story at www.healthreformimpacts.com.
Read one small business owner’s story here.