Yesterday, the Senate voted on two amendments that addressed the new 1099 reporting requirements in the health care law. The mandate requires businesses to submit 1099 forms for all purchased goods and services costing $600 or more, thereby subjecting businesses to even more burdensome regulations.
Senator Bill Nelson (D-FL) introduced an amendment (to the small business bill) that would have merely scaled back the new reporting requirements, while imposing a massive, discriminatory tax hike to supposedly “pay for” his proposal. Senator Nelson’s amendment would have eliminated the 199 section in the tax code that allows all domestic manufacturers to deduct six percent of their income, but only for American oil companies. Increased costs would have inevitably been passed down to consumers in the form of higher gas prices and electricity bills, and could have also endangered many jobs connected with an industry that employs or supports nine million Americans.
Senator Mike Johanns (R-NE) introduced an amendment to fully repeal the new 1099 mandate without raising taxes.
We sent a Vote Alert to Senate offices urging a NO vote on the Nelson Amendment and a YES vote on the Johanns Amendment. Both amendments failed.
The Senate is likely to vote on final passage of the small business lending bill by the end of the week.