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Obama Supports Repeal of Onerous 1099 Requirement

In his State of the Union speech, President Obama said he supports repealing a provision in the healthcare reform law that requires all businesses and...
January 26, 2011

In his State of the Union speech, President Obama said he supports repealing a provision in the healthcare reform law that requires all businesses and governments to file an expanded 1099 form with the Internal Revenue Service, which places a heavy burden on small businesses.

"So let me be the first to say that anything can be improved," Obama said before Members of Congress. "If you have ideas about how to improve this law by making care better or more affordable, I am eager to work with you. We can start right now by correcting a flaw in the legislation that has placed an unnecessary bookkeeping burden on small businesses."

Obama rejected a complete repeal of the Patient Protection and Affordable Care Act, which requires that all Americans have health insurance, but vowed to work with Congressional Republicans to make the law better. The House of Representatives passed a repeal of the health reform law, on a near party-line vote of 245-189 January 19, but the Democratic-controlled Senate is unlikely to take up the bill.

PIA supports the repeal of section 9006 of the healthcare law and congratulates Obama for supporting a repeal.

The expanded 1099 requirement, effective in 2012, requires businesses of all sizes, as well as governments and nonprofits, to file a 1099 form with the Internal Revenue Service reporting any purchases they make of goods or services of $600 or more in a tax year from any individual or business, including corporations.

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