Thursday, February 03, 2011

Senate Strips Tax Provision in Health Care Bill

More action in President Obama's health care reform legislation. Yesterday, in addition to voting against a full repeal, the Senate voted to get rid of the highly unpopular 1099 reporting provision. And business owners across the nation heave a simultaneous sigh of relief.

MSNBC reports:

    In a bipartisan vote of 81-17, the Senate just voted to stripe the health care law of a controversial tax measure, the so-called 1099 provision.

    It's a reporting requirement tucked into the law that mandates businesses submit IRS tax form 1099 for every vendor it pays more than $600.

    It was designed to prevent vendors from underreporting income to the IRS while simultaneously offsetting the cost of the health care law. Instead, opponents say, it will create a paperwork nightmare for small businesses and the IRS.

Continue reading at MSNBC.com...