The United States House of Representatives voted 314-112 today to repeal a provision of the health reform law that would have required businesses to file 1099 tax forms for every vendor that sold them more than $600 worth of goods and services.
Seventy six House Democrats joined a unanimous group of Republicans in supporting H.R. 4, which would offset lost revenue from the repeal by increasing the amount of health insurance subsidies that could be recaptured in cases where a family's income exceed certain thresholds.
Freshman Congressman William Keating was the only member of the Massachusetts delegation to vote on favor of the bill.
The Senate approved a separate version of the 1099 repeal on February 2. House and Senate will now attempt to reconcile the different revenue offset plans contained in the two versions. President Obama has indicated that he supports a 1099 repeal, but has problems with the House bill.
The 1099 mandate, due to take effect in 2013, would require more than 30 million U.S. companies that currently only have to tell the IRS the value of services they purchase from vendors to also report the value of goods and merchandise they purchase. Lawmakers added the 1099 reporting footnote to the federal health reform bill in an effort to fund a portion of the massive overhaul.
Associated Industries of Massachusetts believes the provision would saddle employers with significant administrative and accounting expense at a time when many are already struggling with the soft economy.