Obama Signs Legislation To Remove Reform Law Tax-Reporting Provision
On Thursday, President Obama signed legislation (HR 4) repealing the 1099 tax-reporting provision of the federal health reform law, marking the first elimination of part of the law since its passage in March 2010, Modern Healthcare reports (Zigmond, Modern Healthcare, 4/14).
The tax-reporting requirement -- which was scheduled to take effect in 2012 -- would have required businesses, not-for-profit groups and government offices to file 1099 forms with the Internal Revenue Service when they purchase $600 or more in goods or services from another business in a given year.
Federal analysts predicted that the provision would have raised $19.2 billion over 10 years, but lawmakers and the White House considered it an undue burden on small businesses (California Healthline, 3/30).
In a statement, Obama said that the repeal allows small-business owners to "spend their time and resources creating jobs and growing their business, not filling out more paperwork" (Norman, CQ HealthBeat, 4/14).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.