The Hill reports:
After a months-long battle, the Senate voted Tuesday, 87 to 12, to repeal the 1099 tax-reporting requirement in Democrats’ healthcare reform bill .
The measure now goes to the president, who is expected to sign it, making it the first part of his party’s signature reform bill to be scrapped.
The measure, initially included as a funding measure for the healthcare bill, does away with the requirement for companies to report to the IRS transactions valued at more than $600. While the provision has had few backers in either party, debate over its repeal had dragged on for months.
The 1099 reporting requirement kicks in at the beginning of 2012, just when the thousand-plus Obamacare waivers are expiring and their beneficiaries will be pleading for their renewal. The bureaucratic hassles of Obamacare will be back on the front pages. Although a nuisance, the 1099 reporting requirement will be the most obvious “cost” of Obamacare to millions of small businesses and sole proprietors as we go into the next campaign season.
Taking this off the table risks losing that community’s commitment to the complete defeat of Obamacare. Repealing the 1099 reporting requirement would be a Pyrrhic victory in the struggle against Obamacare — exactly the type of bipartisanship we don’t need.