The Senate voted 87-12 to repeal the so-called 1099 tax provision after months of loud complaints from every group representing small business.
Democrats and Republicans have banded together to eliminate a small but fiercely resisted piece of President Obama’s massive health-care law signed last year, reports MarketWatch.
The Senate voted 87-12 to repeal the so-called 1099 tax provision after months of loud complaints from every group representing small business. The provision would have required small businesses to file a tax form for any company from which it bought more than $600 in goods or services in a single year. The provision was set to take effect in 2012.
The House has already passed the measure and it’s expected to be sent to the White House soon for Obama’s signature. The president has signaled support for repeal.
Small businesses made repeal of the provision their top priority, complaining it would be very costly and time consuming to comply with. Even the main lobby for accountants opposed the 1099 provision despite the likelihood it would have increased their business.
The provision was quietly slipped into the original health-care bill as a way to deter tax fraud among small businesses that underreport income. It was expected to generate around $20 billion in federal revenue over the next decade, most of which was to be used to help pay for Obama’s health-care plan.