NU Online News Service, Jan. 21, 3:05 p.m. EST
WASHINGTON—The letter from three Senate members deals with the “next-step” plan by House Republicans following their symbolic vote Wednesday to repeal the entire health care reform measure.
Support for repealing the 1099 reporting measure is strong, with all insurance trade groups and their members arguing in unison that the provisions would require them to introduce expensive new record-keeping mechanisms.
Section 9006 of the Affordable Care Act requires all business entities to file a 1099 form with the Internal Revenue Service for each vendor for whom they have cumulative transactions of $600 or more.
It was inserted as a means of raising $19 billion over 10 years.
The letter supporting a clean bill repealing the 1099 reporting measure was written by Democratic Sens. Ben Nelson, Neb.; Maria Cantwell, Wash.; and Amy Klobuchar, Minn.
It asked House Speaker John Boehner, R-Ohio, “to quickly pass a clean measure rolling back a burdensome reporting requirement in the law—the so-called ‘1099’ requirement.”
Doing so, the three senators said, would “preserve jobs in America’s small businesses, our nation’s engines of economic growth.”
It implied that the Republicans’ “repeal and replace” strategy of undermining the health care reform measure by including the popular 1099 repeal measure with other provisions in one package might not work.
In the letter by the three senators to Rep. Boehner, they said that, “Now that you have moved past repeal of the Affordable Care Act, we encourage you to work on efforts to improve the law moving forward.”
“In this spirit, we urge you to take up and pass H.R. 4, a bill which simply strikes the tax-reporting requirement in the health reform law,” the letter said.
“We have heard from small business men and women in our states who have voiced concern that this provision is burdensome and unnecessary, and could potentially undermine our nation’s economic recovery,” the letter from the three senators said.
They added, “Repealing this provision would be an important and practical way to improve the Affordable Care Act. We are confident that the Senate can quickly act on H.R. 4 once the House has passed it.”