The House of Representatives has voted to repeal the health reform law's provision requiring businesses to file a tax form for every vendor with which they have transactions worth $600 or more.
House votes to repeal 1099 provision
On Thursday, House members voted 314-112 to approve legislation that overturns the 1099 provision—named for the type of form required by the Internal Revenue Service—in the Patient Protection and Affordable Care Act. Last month, the Senate repealed this provision in a Federal Aviation Administration reauthorization bill in a vote of 87-8. Sen. Debbie Stabenow (D-Mich.), who sponsored the amendment attached to that bill, said about 40 million small businesses could have seen their paperwork responsibilities increase by 2,000% if the provision had remained intact.
At issue is how to pay for repealing the provision, which would cost about $22 billion over 10 years. The House bill aims to do this by recouping overpayments of taxpayer-funded health insurance exchange subsidies. The legislation mirrors a bill introduced earlier by Sen. Mike Johanns (R-Neb.), according to a House Ways and Means Committee staff member. If the Senate passes this House bill and makes changes to it, there could be a conference committee to resolve differences between the chambers.
“I am hopeful we can work with the Senate to iron out the differences between the two versions, so that the President can sign this repeal into law,” House Majority Leader Eric Cantor (R-Va.) said in a statement.
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