U.S. Sen. Lamar Alexander (R-Tenn.) has voted in favor of an amendment that would repeal a section of the new health care law requiring all businesses to submit 1099 tax forms for every business transaction greater than $600 in a given year, including routine expenses like the purchase of office supplies.
The provision, if allowed to go into effect in 2012, would affect more than 40 million American businesses, including 26 million sole proprietorships, according to the National Taxpayer Advocate Service, an Internal Revenue Service ombudsman.
“During a time of nearly 10 percent unemployment, it makes no sense to force more than 40 million American businesses to spend extra time and money filling out a new tax form for every phone bill, rent check or utility payment over $600,” Alexander said in a release. “Instead of filling out one IRS form after another, American businesses should be focused on how to grow their businesses and create good jobs.”
Alexander is a co-sponsor of the amendment, offered by Sen. Mike Johanns (R-Neb.). The amendment is similar to the Small Business Paperwork Mandate Elimination Act, a bill introduced by Johanns and Alexander on July 14. The Johanns-Alexander amendment includes spending cuts so that it would not add to the national debt. On Monday, Alexander opposed an amendment offered by Sen. Max Baucus (D-Mont.) that would have repealed the 1099 provision but could have added $19.3 billion to the debt over 10 years.
The Johanns amendment failed, 61-35. Under Senate Rules, 67 votes were required.