The House took up legislation last week that would repeal the so-called “1099 provision” in the PPACA.
Widely unpopular on both sides of the aisle, the 1099 provision requires that businesses file a 1099 form with the Internal Revenue Service for every vendor to whom they pay more than $600 in a year, beginning in 2012.
The House bill – H.R. 4 – would eliminate that tax reporting requirement for businesses, and also includes language that would eliminate the requirement for owners of rental real estate. Further, the measure would allow the government to recapture a larger share of overpayments to consumers receiving health insurance subsidies for the new health exchanges in order to make up the $19.2 billion in tax revenue that it is estimated the 1099 provision would produce over 10 years.
The House approved H.R. 4 by a vote of 314-112 on March 3. While the 1099 repeal largely enjoys bipartisan support, 112 House Democrats did not support the measure due to opposition to the manner in which the tax revenue would be offset.
The Senate has already given strong bipartisan approval to a similar 1099 repeal provision, but would offset the lost revenue by rescinding other unobligated funds. This lack of agreement on offsets reveals how even a popular policy change may fall victim to partisan differences this year.