Senate Democrats said Friday that they’re prepared to repeal a new tax reporting requirement in the health care reform law that has riled up small businesses over concern that it is too burdensome.
The so-called 1099 provision would require businesses to file paperwork for all cumulative purchases from a vendor that top $600 in a year. It would have raised about $17 billion to help cover reform.
Speaking as a small business owner that will probably be directly affected by this, this is a very good thing. It was a stupid, onerous law and a particularly boneheaded burden to add to small businesses during a recession.
EDIT: To put this in perspective, this law meant that I’d have to file a 1099 just for buying a new Dell PC. That’s the kind of extraneous paperwork that makes people look at starting their own business and say “nah, it’s just too much of a headache”.