The House of Representatives voted to repeal a provision of the health care reform bill Thursday that forced businesses to submit 1099 tax forms for any individual or business from which they buy more than $600 worth of goods in a year.
“Keeping another promise we made to our constituents in the Pledge to America, House Republicans voted today to repeal the overpowering, burdensome 1099 paperwork mandate to be placed on small business owners under the current health care law passed by Democrats last year,” said Congressman Buck McKeon in a statement.
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H.R. 4, The Small Business Paperwork Mandate Elimination Act, passed with a vote of 314-112, with 76 Democrats joining the GOP’s unanimous position.
Proponents of President Barack Obama’s health care reform said the provision created $22 billion in annual federal revenue. Recent Republican legislation attempts to make up for the lost revenues by changing the schedule to recoup subsidies to purchase insurance meant for low and moderate income families after they’ve reached higher income levels.
On Thursday, McKeon said oppressive mandates, such as the 1099 provision, hinder business confidence and the ability to project future growth.
“Seven out of every ten new jobs in America are created by our nation’s small businesses, making them the leading source for America’s prosperity and economic recovery,” he said. “With these considerations in mind, the federal government should be making it easier, not harder, for our nation’s small business to grow by removing barriers and obstacles in the way of our job creators. Today’s vote to repeal the 1099 requirement in the health care law achieves just that.”
Nevertheless, the 1099 provision isn’t completely eliminated. On February 2, the Senate passed its own version of the repeal with wording different from the House bill. The two chambers will need to agree on the same legislation.