Senate Plans Final 1099 Repeal Vote

Washington Post reports:

Both the Senate and the House have already voted this year to repeal one of the most unpopular provisions of the national health care law. But this week, if things go according to plan, the Senate will hold a second (and final) vote on the issue, sending President Obama the first measure officially repealing part of his signature health care legislation.

On Tuesday, the Senate is slated to vote on repealing the 1099 tax-reporting provision of the health care law, which is, yes, every bit as exciting as the name suggests: the provision requires businesses to report to the Internal Revenue Service all purchases of $600 or more.

The White House and congressional Democrats and Republicans alike have criticized the provision as unduly burdensome on small businesses, and members of both parties have advocated for its repeal.

In an overwhelming 81-to-17 vote two months ago, the Senate approved repeal of the 1099 provision. The House passed its own version of 1099 repeal last month, on a bipartisan 314-to-112 vote.

So, most everyone in Congress agrees that the 1099 provision should go.

The sticking point, then, is how to pay for 1099 repeal, which would result in the loss of an estimated $22 billion in revenue over the next decade.

The 1099 repeal that passed the Senate earlier this year, sponsored by Sen. Debbie Stabenow (D-Mich.), would pay for the repeal by using untapped federal funds. It would also exempt the Social Security Administration, Medicare, the Defense Department and Veterans Affairs from potential cuts as a way to pay for repeal.

The version that passed the House, meanwhile, would pay for 1099 repeal by forcing greater repayment of health insurance subsidies for families whose income unexpectedly exceeds certain thresholds.

The version that will be voted on in the Senate on Tuesday will be the House-passed version, which Sen. Mike Johanns (R-Neb.) has introduced in the upper chamber; a 60-vote threshold is necessary for passage.

Republicans have argued that the House-passed plan would reduce the deficit by $166 million over the next decade, while Democrats have contended that it would increase the burden on the middle class. Boosting the measure’s chances of passing is the fact that it has the support of Senate Majority Leader Harry Reid (D-Nev.), who came out in favor of the House-passed “pay-for” last month.