WASHINGTON – Sen. Mike Johanns (R-Neb.) has invited his Senate colleagues to join him in introducing legislation to repeal the 1099 tax reporting mandate in the health care law. Johanns will reintroduce the Small Business Paperwork Mandate Elimination Act on January 25, the first day bills can be formally introduced in the 112th Congress.
“By joining me in introducing 1099 repeal legislation, my colleagues have the opportunity to show a renewed commitment to job creation in 2011,” Johanns said. “We were very close to repealing this burdensome provision last November and I hope the bipartisan spirit continues in the new year. Telling our business owners and ag producers that we’re committed to removing obstacles to their growth would start off the new Congress on the right foot.”
In 2010, Sen. Johanns led the effort to repeal the burdensome 1099 paperwork mandate embedded in the health care law. The provision requires businesses to submit a 1099 form to each vendor from which the business has purchased more than $600 worth of products in a given year. In November of last year, nearly every Senator voted to repeal the mandate but there was not agreement on how or whether to pay for its repeal. Johanns’ amendment was supported by 61 Senators, but required a supermajority of 67 to pass.