House Set to Vote on 1099 Reporting Repeal
Questions remain between House and Senate on how to offset provision.
Compiled by staff
Published: Mar 2, 2011
The House is expected to vote on and pass a bill Wednesday that would repeal the 1099 tax reporting requirement included in the health care law. However, because the House would pay for the change differently than a similar measure endorsed by the Senate, it is unclear how and when lawmakers might reach a compromise on eliminating the provision. The question is whether members of both parties, in both chambers, can agree on an offset to make up for the more than $19 billion the requirement is estimated to bring in over the next decade.
House Republicans are pursuing an offset that would allow the government to recapture a larger share of overpayments to consumers receiving health insurance subsidies for the new health exchanges. But that is opposed by House Democrats, who say it would amount to a tax increase on low- and middle-class individuals.
In the Senate, a large bipartisan group approved an approach last month that would rescind $44 billion in unobligated funds. That measure was adopted earlier as an amendment to the reauthorization of Federal Aviation Administration programs, which the Senate later passed. It is likely a conference committee will have to hash out the differences.
Former Secretary of Agriculture and now Senator Mike Johanns, R-Neb., says small-business owners, farmers and church leaders don't care whose name is on the bill, in which chamber it originated, or which spending offsets are used, and neither does he. He says if advancing the House bill means this looming mandate is repealed sooner rather than later, then it should be done.
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