Our Priority: Improve the health of Kentucky's children. Click here to learn more!
Our Priority: Assure that all Kentuckian's have access to high quality, affordable health care. Click here to learn more!
Our Priority: Improve the efficiency and effectiveness of health care for Kentuckians. Click here to learn more!
Our Priority: Make prevention a priority for Kentucky's health policies and programs. Click here to learn more!
Kentucky Voices: Promoting Better Health in the Commonwealth. A series of short videos from real Kentuckians - patients, advocates and providers - sharing their personal healthcare stories. Click here to watch videos!

Senate Rejects Efforts to Modify Health Law’s Provisions for Small Businesses

« Back

Sep 14th, 2010

Senate Rejects Efforts to Modify Health Law’s Provisions for Small Businesses

 

The Senate rejected two different proposals today to eliminate or reduce the burden associated with a tax-compliance reporting requirement in this year’s health care law.

 

The two proposals were offered as amendments to a small-business bill. Senators voted 46-52 against invoking cloture — or limiting debate — on a Republican plan, and they voted 56-42 against limiting debate on a Democratic alternative. Sixty votes are needed to invoke cloture.

 

Current law requires businesses, beginning in 2012, to report annually to the IRS on payments to any vendor that total more than $600 in a tax year. Critics of the requirement say it places a large paperwork burden on many businesses.

 

To pay for repealing the requirement, Mike Johanns , R-Neb., proposed generating $19.2 billion in revenue by limiting the reach of the individual health-insurance mandate in the new law and reducing funding allocated by the law for preventive-care programs.

 

Many Democrats who support repealing the “1099 provision,” which is named for the associated IRS form, panned the offset that Johanns would use to pay for the change.

 

The Democratic alternative would exempt businesses with fewer than 25 employees and would raise the reporting threshold for the remaining companies to $5,000, from the $600 under current law. Bill Nelson , D-Fla., proposed paying for the $10.1 billion cost of the amendment by preventing the largest oil companies from obtaining a 6 percent tax deduction designed to aid domestic manufacturing.

 

Senate Minority Leader Mitch McConnell , R-Ky., said Democrats were “socking businesses with another mandate that could cost them thousands of dollars a year in the middle of a recession.”

 

Senators voted, 61-37, to limit debate on a substitute amendment to the underlying small business bill, setting up final passage of that measure later this week. The substitute would establish a $30 billion lending fund for small businesses, provide $12 billion in tax breaks, and enhance federal programs that support small businesses.

 

« Back

View All »

Coalition Partners