Washington (CNN) – The Senate 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 unpopular with both parties when businesses complained it would be too burdensome.
The Senate voted 87-12 for the repeal. 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 Obama administration and some congressional Democrats, while favoring the repeal, had opposed the way the Republican-sponsored bill made up for the approximately $22 billion the Congressional Budget Offices says would be lost over the next 10 years to pay for health care reform.
However, multiple sources from both parties said they expect the president to sign the repeal.
An aide to Sen. Mike Johanns, R-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.
However, other Republicans said they hope this is the first vote of many that pares back the health care law.
"This is a big win for small businesses," Senate Republican Leader Mitch McConnell said before the vote Tuesday. "Importantly, it's also the first of what I hope are many successful repeal votes related to the disastrous health spending bill Democrats passed last year."
White House Press Secretary Jay Carney, responding to passage of the legislation, said the administration is "open to working with Republicans and Democrats to improve the health reform law."
"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."
Right–Fighting corporate fraud is too expensive for corporations to allow it. GOPher support for corporate fraud, welfare, malfeasance, etc. knows no bounds. Scalia says they can spend unlimited amounts to buy elections, and that defending against a class action suit charging gender discrimination in promotion is too difficult for a multi-gazillion dollar company like WalMart that has no trouble coercing thousands of vendors to lower theit prices. Anti-democrstic Scalia and Resentful Clarence are turning this country into one big Chamber of Commerce fiefdom.
The one political entity worldwide most in need of "regime change" is the Supreme Court of (but not "for") the US.
the beginning of the end.....
Hopefully this is the beginning of the end of the Obamacare debacle.
What 12 idiots voted against reapeal of this idiotic piece and why are they still in office ?
Voters wake up !
I'm so tired of hearing businesses complain about their precious time. 60% of all businesses in the USA don't pay taxes. If you ahve trouble filling out forms, close your doors – you're too stupid to be in business.
Most businesses fail b/c the owners don't know how to run a successful business. And instead of admitting they don't know what they're doing, they blame their failure on 1) too much paperwork (really, guys? that's like the fifth grader saying his dog ate his homework!) 2) Minimum wage increases 3) HC costs 4) taxes (even though 60% don't pay ANY taxes) the list goes on and on.
How about you small business owners take some management classes? Learn how to operate a business, not how you THINK one should be run. Learn how to provide customer service. Learn how to respond to requests for information about your product/services ina a TIMELY manner.
I've run two successful independent businesses – sold them both. The new owners ran them BOTH into the ground b/c they didn't konw the first thing about running a business or how to comply with regulations.
Instead, American businesses just got a great way to continue their tax dodging. nice!
The stated purpose and the required purpose are very different when it comes to these purchases. This is a national security matter. Banks already report similar information for your transactions exceeding $10K under current law.
I understand why this was unpopular. But, it needs to be done in some fashion. Tucking it inside of Health Care Reform, and getting the IRS involved was not a good way. It should have been part of the Financial Reforms. This is a national security issue, as unpleasant as this may sound, it really is needed.
This type of information is how some domestic terrorists have been discovered. The first example is Timothy McVeigh. Remember how they had traced purchases of farm fertilizers.
What a lousy report. You note that there was some conflict over how the change will be paid for – but you didn't give a single detail on what's in the actual bill.
Where's the rest of the story?
Gee, this was a GOP admendment that was put in the bill and yet those will say the GOP had no say in this bill. You can't have it both ways. Yup, it was a GOP admendment that no one wanted even the GOP themselves!!!