The Senate failed to pass legislation to repeal a tax provision in the health reform law requiring small businesses to report purchases of $600 or more. Senate Finance Committee Chairman Max Baucus (D-Mont.) and Sen. Mike Johanns (R-Neb.) introduced separate amendments related to the Form 1099 measure that were to be attached to the Food Safety Modernization Act, a piece of legislation the Senate passed Tuesday.
Senate shuns repeal of 1099 provision
Johanns said his amendment would have offset the entire cost of the 1099 repeal, compared with Baucus' amendment, which Johanns said would have added another $19 billion of debt for future generations, according to Johanns' remarks in the Congressional Record. Johanns proposed paying for the repeal using about 5% of unspent and unobligated funds from money left in the accounts of federal agencies at the end of the year.
Baucus promised to revisit the issue, saying such a provision would allow business owners to focus on growth and job creation, rather than paperwork. “Small business owners voice legitimate concerns that these requirements would be burdensome, and the Senate should act in response to those concerns,” Baucus said in a statement. “I am disappointed that we weren't able to repeal these requirements today, but I intend to keep working until we do.”
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