Tuesday, March 08, 2011

HR 4 Update

Please see information on 1099 status.

Seems like we are getting closer but we will continue to push until signed by the President.

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA 94116

From: Snyder, Alexandra [mailto:Alexandra.Snyder@mail.house.gov]
Sent: Tuesday, March 08, 2011 4:10 PM
To: Snyder, Alexandra
Subject: HR 4 Update

I was recently informed that the Senate will likely vote on H.R. 4 (to repeal the expanded 1099 mandate) this week! Debate may begin as early as tomorrow, with a final vote on Thursday. As expected, there are some issues with the offset. As the following article indicates, Senator Baucus may offer an offset that combines the offset in the Johanns bill (adopted in the Stabenow amendment to the FAA bill) and the one in H.R. 4. However, Majority Leader Reid is on record as supporting the House offset.

Thank you again for all of your hard work in getting the 1099 repeal to this stage. It should be an interesting week!


Alexandra Snyder
Legislative Counsel
Office of Congressman Dan Lungren
2313 Rayburn House Office Building
Washington DC 20515
O: 202.225.5716
F: 202.226.1298

BNA reporting...

Baucus to Propose Splitting Both House, Senate
Offsets for Form 1099 Repeal

Posted March 8, 2011, 2:17 P.M. ET

Senate Finance Committee Chairman Max Baucus (D-Mont.) said March 8 that
he intends to amend the House-passed bill (H.R. 4) to repeal new Form
1099 rules by paying for the bill with a combination of both the House
offset and a Senate offset that would rescind authorization for unspent

The House bill was paid for with a provision that would modify
repayments of health care tax credit overpayments, while the Senate paid
for the bill by rescinding $44 billion of unspent earmarks.

The bill, which would relieve businesses of the requirement to file a
Form 1099 information report whenever their payments to a single
provider of a good reaches $600 in a single year, is expected to move to
the Senate floor by March 11, according to Senate Majority Leader Harry
Reid (D-Nev.). The bill would also repeal a new requirement for
landlords to report all payments of $600 or more for goods or services
provided for rental property.

The repeal would only apply to new Form 1099 requirements put in place
under the Patient Protection and Affordable Care Act of 2010 (Pub. L.
No. 110-148) and the Small Business Jobs Act of 2010 (Pub. L. No.

Reid Backs House’s 1099 Repeal
By Brian Friel and Niels Lesniewski, CQ Staff

Senate Majority Leader Harry Reid said Tuesday he favors a House-passed measure that would repeal a controversial tax-reporting provision in last year’s health care overhaul.

The comments by Reid, D-Nev., increase chances that the Senate will approve the measure (HR 4) to eliminate the “1099” provision even though some Democrats oppose the House’s proposal to offset the $19 billion cost by reclaiming overpayments of advance tax credits to help low-income families buy health insurance. Some Democrats would prefer a Senate-approved offset that would rescind unobligated discretionary funds.

“Me personally, I like the House pay-for better than ours,” Reid said Tuesday, though he added that Democrats were still discussing how to proceed on the measure.

If the Senate accepts the bill as is, it would go to President Obama for his signature — and mark the most significant change yet to the landmark health care law (PL 111-148, PL 111-152).

Sen. Mike Johanns, R-Neb., said Tuesday that he expects Democrats and Republicans to agree to the House bill. He noted that the Senate unanimously backed using the same offset to cover the costs of an extension of Medicare physician payment rates in December. “Overwhelmingly, Senate Democrats and Republicans want to get this done,” Johanns said. “We can all claim victory, Republicans and Democrats.”

Supporters of the repeal say the tax reporting provision places an unfair burden on businesses and could undermine economic growth.

The provision requires businesses and real estate owners to report to the IRS any vendor receiving more than $600 a year. The reporting requirement is intended as a way to reduce tax fraud.

The House passed its version of the 1099 repeal March 3 on a 314-112 vote. Many Democrats opposed passage because of the measure’s budgetary offset, which they argued would scale back benefits included in the 2010 health care overhaul.

The Senate voted to repeal the 1099 reporting requirement in an amendment to the reauthorization (S 223) of Federal Aviation Administration programs, which the Senate passed Feb. 17.
The amendment, sponsored by Michigan Democrat Debbie Stabenow, offset the costs of the repeal by rescinding unobligated discretionary funds.

The repeal passed by voice vote after senators voted 81-17 to waive a budgetary point of order against it. Reid voted in opposition along with Democratic appropriators concerned about granting congressional prerogatives over spending to the Office of Management and Budget, which would be tasked with coming up with the source of the spending rescissions.

During debate on the amendment, the Senate rejected a proposal by Democratic Sens. Carl Levin of Michigan and Daniel K. Inouye of Hawaii to offset the cost of the repeal mostly with increased taxes on the oil and gas industry.

The 1099 repeal is in line behind two other matters. The Senate is moving toward completion of a patent system overhaul (S 23) by early Wednesday and is then slated to debate the rest of the fiscal year’s federal funding.

No comments: