Alexander Praises Senate Passage of Bill to Repeal Health Care Law Provision Requiring More IRS Paperwork of 40 Million-Plus Small Businesses

“I hope the repeal of this bad provision of the new health care law quickly leads to the law’s full repeal, so we can start over on real reforms that will lower the cost of health care for all Americans.” – Lamar Alexander

Posted on April 5, 2011

WASHINGTON – U.S. Senator Lamar Alexander (R-Tenn.) today voted to repeal the provision of the new health care law requiring all businesses (large and small) to submit 1099 tax forms for every business transaction greater than $600 in a given year, calling it “just one of the new health care law’s many job-destroying provisions.” The Senate passed the legislation by a vote of 87-12. 

“Tennessee has seen 26 straight months of unemployment above 9 percent, and the last thing our state’s small businesses need, as they work to grow and hire new employees, is to be forced to waste their time filling out a new tax form for every phone bill or utility payment over $600,” Alexander said. “I hope the repeal of this bad provision of the new health care law leads soon to the law’s full repeal, so we can start over on real health care reforms that will lower the costs for all Americans.”

This provision, if allowed to go into effect in 2012, would affect more than 40 million American businesses, including 26 million sole proprietorships, according to the National Taxpayer Advocate Service, an Internal Revenue Service (IRS) ombudsman.

The Senate has voted several times to repeal the 1099 provision, with each bill proposing a different source of revenue to pay for the costs of repeal. Today the Senate passed H.R.4, a bill passed last month by the House of Representatives that does not increase federal spending or add to the debt; it is fully paid for by reclaiming health insurance subsidies that are overpaid to some individuals. Alexander voted against an amendment introduced by Senator Robert Menendez (D-N.J.) that would have given the Administration the discretion not to pay for the costs of repeal, which would increase the deficit.  

Last year, Alexander cosponsored an amendment to repeal the 1099 provision that was introduced by Senator Mike Johanns (R-Neb.).

Alexander has also voted to repeal the health care law in its entirety, and has repeatedly described the law as an “historic mistake.”

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