A portion of the massive health care reform package will be changed as a result of a vote in the U.S. Senate to repeal a provision that would have forced the filing of a ton of new 1099 Forms.
The Senate voted 87-12 to repeal the portion of the law that would have required businesses to file 1099 forms with the IRS showing payments of $600 or more to vendors. The goal was to reduce tax evasion, but businesses loudly complained it was burdensome and costly, including many in U.S. agriculture. President Obama is expected to sign the measure.
One of the key drivers of this push for repealing the provision has been Sen. Mike Johanns (R-Neb.). In a statement following the Senate vote, Johanns hailed the move.
"I appreciate that my colleagues have seen the wisdom of avoiding further delays and getting this costly, looming paperwork burden off the backs of our job creators," Johanns said. "We now need only a simple signature from the President and this bill will become law, saving jobs and much needed capital for our small businesses."
From the ag industry, the National Cattlemen's Beef Association (NCBA) has also hailed the development. NCBA Vice President of Government Affairs Colin Woodall labeled it an "enormous victory" for U.S. agriculture.
"This burdensome and costly provision, designed to pay for an unpopular healthcare bill, is on its way out the door thanks to 87 senators who understand the importance of small businesses, including farms and ranches, to the overall health of the U.S. economy," Woodall saidl. "Placing burdens on entities that stimulate the economy is a step in the wrong direction."