A victory for small business: 1099 provision repealed
The Senate voted 87-12 to repeal the unpopular 1099 provision of the Affordable Health Care Act, Tuesday. Small business owners have expressed their frustration at the provision, which would require them to report to the IRS all payments of more than $600 on 1099 forms. This would have significantly increased paperwork required of a small business and many don’t have the necessary time or manpower to complete the new requirements.
The House of Representatives took the first step in repealing the provision in early March. Now that the provision has been repealed in the Senate, it will move to President Obama’s desk. Shortly after the Senate vote, the White House signaled that President Obama would sign the repeal, despite opposition to the House proposed offset to pay for the repeals.
Many chambers are celebrating this victory as they have worked tirelessly with their small business members and congressional delegates to repeal the 1099 provision. A policy update from COSE recounts their work with legislators to raise awareness about the issue and demonstrate the detrimental impact the 1099 provision would have on small business. COSE is thrilled with the victory and applauds the legislators for their work and the efforts small businesses put forth to advocate against the issue as well.
On a national level, ASAE and the US Chamber also led efforts to repeal the 1099 provision and are celebrating success with their memberships.