The Senate overwhelmingly and in a rare bipartisan manner voted Tuesday to repeal a part of the health care reform law that would require businesses to file a 1099 tax form with the government for every purchase they make over $600.
The requirement was designed to fight tax fraud and raise money for the health care reform plan Democrats passed last year. But it quickly became extremely unpopular. Businesses properly complained it would be a major nuisance that would substantially increase administrative time with paperwork and be a burden especially on small businesses.
The Senate voted 87-12 for the repeal. Beyond enough to over ride a presidential veto if one were to occur and the House already approved the bill, so it will go directly to the president, who has not said definitively if he will sign the legislation.
The President and his administration as well as some Congressional Democrats, support the repeal, but disagreed with how the proposed legislation made up for the around $22 billion the Congressional Budget Offices claimed would be lost over the next 10 years to pay for health care reform.
Multiple sources from both parties said they anticipate the president to sign the repeal.
An assistant to Sen. Mike Johanns, Republican from Nebraksa, said the senator's effort to repeal the IRS reporting requirement always was aimed at easing the workload on businesses, not at taking a partisan whack at the controversial health care law.
White House Press Secretary Jay Carney, responding to passage of the legislation, said "We are pleased Congress has acted to correct a flaw that placed an unnecessary bookkeeping burden on small businesses," Carney said in a written statement. "And the administration remains eager to work with anyone with ideas about how we can make health care better or more affordable for all Americans."
Source: CNN - Ted Barrett
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