Today, the House passed the H.R. 4 bill in a 314-112 vote, repealing the 1099 reporting requirements from the funding provision of the 2010 health care law. The bill eliminates the requirement that all for-profit corporations issue 1099 forms to vendors from whom they purchased over $600 of goods or services in a tax year, scheduled to go into effect for all payments made after December 31, 2011.
The cost for the 1099 repeal is currently estimated at nearly $22B over the next 10 years. The funding remains the biggest debate around the 1099 repeal across the House, the Senate and the White House.
There was significant controversy in the House around the funding of the H.R. 4 bill, with Democrats calling it a tax hike on middle-class Americans. The bill increases the amount of health insurance subsidies that could be recaptured in cases where a family’s income exceeds certain thresholds. Read more.
The Senate passed their own 1099 repeal back in February as an amendment attached to the FAA funding bill. The funding for the Senate repeal gives the Office of Management and Budget the ability to take away nearly $44 billion of discretionary budget authority—except from the Departments of Defense, Veterans Affairs and Social Security.
The House bill will end up in the Senate next. The issue that still remains is – how to make up the funding for the health care law.
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