The Senate is set to vote this week on amendments that would repeal the expanded Form 1099 reporting requirements that are unpopular with many associations and small businesses.
Senate Majority Leader Harry Reid (D-NV) has said he will allow votes on two amendments as part of consideration of a small business reauthorization act (S. 493). The first amendment, offered by Sen. Mike Johanns (R-NE), is identical to the 1099 repeal bill passed by the House. The second amendment, sponsored by Sen. Robert Menendez (D-NJ) disallows the offsets in Johann’s bill if the Department of Health and Human Services (HHS) determines the provision would reduce the number of insured individuals or raise insurance premiums.
Johanns said this week that the Menendez amendment would further delay efforts to repeal the reporting requirements at a time when small businesses are eager for resolution.
“A second degree amendment to the 1099 repeal … would simply be another wrinkle in what should be a smooth process,” Johanns said. “Only in Washington do opponents of a measure supported by thousands of small businesses try to spin a straightforward, bipartisan solution into something bad for businesses.”
The bill passed by the House earlier this month (H.R. 4) would repeal the expanded rules requiring businesses to issue a Form 1099 for payments to vendors exceeding $600, and would offset the provision’s $22 billion cost by requiring people making 400 percent of the federal poverty limit to repay health insurance exchange subsidies if their income increases over the course of a year.
If the Senate passes the Johanns’ amendment, the measure would move to the president’s desk for signature. The White House has been critical of the offset in the House bill, but it’s unclear if the offset would prevent President Obama from signing it.