US Senate Committee on Health, Education, Labor, & Pensions

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Enzi Aims to Repeal Tax Burden in Health Care Law

Monday, November 29, 2010Craig Orfield (202) 224-8584

Washington, D.C. – U.S. Senator Mike Enzi, R-Wyo., Ranking Member of the Senate Health, Education, Labor and Pensions Committee, continued his efforts today to repeal a burdensome section in the health care reform law that saddles small businesses with a new tax and stacks of paperwork.

Senator Enzi is a cosponsor of an amendment introduced by Senator Mike Johanns, R-Neb., which would eliminate the harmful provision. The current provision in the health care reform law would force 40 million businesses to submit a separate 1099 form to the Internal Revenue Service for every business-to-business transaction that exceeds $600 annually.

“This new reporting requirement hits small businesses hardest because they typically don’t have in-house accounting departments and have to hire outside help,” Enzi said today on the Senate floor. “Government mandates, like the new 1099 requirement, have a real cost, and it is small businesses who end up having to pay them.”

Republicans and Democrats are committed to repealing the 1099 provision, and even the President commented that the provision needs immediate adjustment. Senator Max Baucus, D-Mont., introduced an amendment to repeal the provision but it would add more than $19 billion to the national debt. The Johanns amendment is fully paid for by using 5 percent of unobligated and unspent federal accounts.

“We can make a statement right now to America’s small businesses that we want you creating more jobs, hiring new employees and growing your business – not worrying about what Washington will require of you next,” Enzi said. “Let’s repeal this new tax paperwork burden in a fiscally-responsible way.”

The Senate is expected to vote later today on both the Johanns and Baucus amendments. Sixty-seven votes are needed to secure passage. The amendment that passes would be added to the food safety bill, which the Senate and House must also pass in order for the 1099 provision to be removed from the health care law.

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