Denver Business Journal - Colorado Senators Back Repeal of 1099 Paperwork Rule in Health Reform Law
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Colorado's U.S. senators, Michael Bennet and Mark Udall, both Democrats, joined Republicans late Wednesday in voting to remove a provision from the federal health care reform law that many business people said would created a paperwork nightmare.
The Senate voted 81-17 to repeal language in the Affordable Care Act that, starting in 2012, would require businesses to file 1099 reports with the Internal Revenue Service any time they spend more than $600 with another business. That requirement enlarges current 1099 reporting rules.
Bennet and Udall were among 16 Democrats who joined Republicans in voting to repeal the 1099 rule.
President Barack Obama had called for the provision's repeal in his Jan. 25 State of the Union address as well, saying it "placed an unnecessary bookkeeping burden on small businesses."
Bennet and Udall support the overall health care overhaul, which congressional Republicans are trying to repeal.
The Republican-controlled House has passed a repeal measure, but a repeal vote was defeated Wednesday in the Senate, which is narrowly held by Democrats.
"The Affordable Care Act is already helping thousands of Coloradans, young and old, by lowering drug prices for seniors and helping families provide health care to their children as they reach adulthood," Udall said in a statement Tuesday. "Today, we reached across the aisle to make a common-sense change that will help the law work better for small businesses, the backbone of our economy. [But] I continue to believe health reform is critical to the long-term health of American families and our economy."
"Small businesses are the key to creating new jobs and strengthening our economic recovery. Eliminating the 1099 provision will ensure that they have the flexibility to grow and create jobs without needless red tape in their way," Bennet said. "This fix is a perfect example of how we can continue to take bipartisan steps to improve health care reform."
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