House Approves 1099 Repeal Bill
The Hill reports:
The House on Monday approved a controversial bill that would repeal two IRS reporting requirements, after three hours of tense debate in which Democrats said the Republican bill would raise taxes on middle-class Americans.
The bill, H.R. 4, was approved in a 314-112 vote. Every Republican and 76 Democrats supported the bill, which would eliminate language establishing IRS reporting requirements for companies and property owners on transactions valued at $600 or more.
The main objection for Democrats was the Republican proposal to pay for this change — by increasing the amount of health insurance subsidies that could be recaptured in cases where a family's income exceed certain thresholds. Democrats argued that this amounts to a tax hike, while Republicans said it is a repeal of a subsidy, and noted that Democrats supported a similar change in legislation late last year.
Democrats argued that the offset would amount to a $25 billion tax increase on those who are eligible to receive the subsidy for healthcare whereas Republicans said it doesn't change the tax code and would only affect those required to pay back the tax break.
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