Obama Healthcare Bill Known As The “1099 Repeal” Has Passed Congress

Posted By on April 5, 2011

At least it’s a start…..Congress passes a measure known as the “1099 repeal” because it would relieve businesses of having to file 1099 tax forms for any person or company to which they pay at least $600 in a year.

Congress on Tuesday passed the first major changes to last year’s health care law, undoing both a burdensome paperwork requirement for small businesses and rewriting part of the way the health exchange subsidies are paid for.

The changes are complex and don’t affect the fundamental operations of the health law, but Republicans said they are symbolic nonetheless because they mark the first repeals of significant provisions from Democrats’ signature legislative achievement under President Obama.

The bill passed the Senate on Tuesday with strong bipartisan support, 87-12, and goes to Mr. Obama, who will face a big test over whether to sign it. He has said he wants to repeal the paperwork requirement, but the administration has objected to rewriting the way subsidies in the exchange are funded, arguing it may make people less enthusiastic about joining.

After the bill passed, White House press secretary Jay Carney said Mr. Obama is “open to working with Republicans and Democrats to improve the health reform law, and we are pleased Congress has acted to correct a flaw that placed an unnecessary bookkeeping burden on small businesses.”

Sen. Orrin G. Hatch, Utah Republican, called the bill “a down payment on total repeal of the onerous health care law.”

The measure has become known as the “1099 repeal” because it would relieve businesses of having to file 1099 tax forms for any person or company to which they pay at least $600 in a year.

“Passing the 1099 repeal exemplifies why I came to the United States Senate,” said Sen. Mike Johanns, Nebraska Republican, who has led the fight for repeal in the upper chamber.

The bill marks a major victory for House Republicans, who wrote the bill the Senate passed.

The 1099 filing requirement was included in last year’s health law to try to raise money to pay for some of the new benefits. The goal was to try to force companies to accurately report their finances, which would make it easier to check whether they are complying on their taxes.

But small businesses immediately complained the new paperwork could cost them tens of thousands of dollars a year to hire staff to comply.

More at:http://www.washingtontimes.com/news/2011/apr/5/congress-makes-first-major-dent-health-care-law/

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