[StBernard] Senate approves repeal of 1099 provision

[Westley Annis]

Senate approves repeal of 1099 provision
By Editorial Staff
April 5, 2011
The U.S. Senate passed a bill April 5 that would repeal PPACA's 1099 tax
reporting requirement. The measure benefited from bipartisan support,
passing on an 87-12 vote.

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Under the reporting requirement, businesses would have to file a 1099 form
for any person or company to whom they paid more than $600 in a tax year. It
was slated to raise nearly $21 billion over 10 years by making it easier for
the IRS to identify and pursue those who failed to report the required
information.

The bill passed by the Senate makes up for that lost tax revenue by
requiring consumers who enroll in the state health care exchanges slated to
debut in 2014 to return money that the federal government overpays them for
their coverage.

Under PPACA, the government will provide subsidies to those who enroll in
the exchanges. 

The bill, which has already been approved by the House of Representatives,
now goes to President Obama for his signature.

While he has said in the past that he supports repealing PPACA's 1099
reporting requirement, he has not indicated that he supports any
modifications to the law's health insurance exchanges.