Senate Votes to Continue IRS Paperwork Nightmare

By September 14, 2010Health Care, Taxation

Take that, small business!

The Senate today defeated both amendments to change the IRS tax filing mandates included in the health care law discussed earlier here and here.

A cloture vote on the Sen. Mike Johanns’ amendment to strike the onerous filing mandate failed on a vote of 46-52. A cloture vote on Sen. Bill Nelson’s amendment to keep the requirement while changing it on the margins failed 56-42, with 60 votes needed.

Anticipating the vote, The Wall Street Journal editorialized today:

[This] issue won’t go away. The President’s opposition to a clean repeal shows the hollowness of his alleged support for small business, which he expresses at every campaign stop but is less a priority than preserving his health-care legacy.

The larger political story here is that ObamaCare is already under bipartisan siege—and in the same Congress that passed it. The 1099 provision is only one plank, but repealing the law plank by plank may be the right strategy. Sooner or later the whole thing becomes unworkable. Voters should watch this vote to see who’s really on the side of small business.

The Senate subsequently invoked cloture on the underlying small business financing bill, H.R.5297, with 61 votes. Senate Majority Leader Harry Reid called it the biggest most important vote to support small business since the stimulus bill.

Sen. Mary Landrieu (D-LA) then took to the Senate floor saying she’s going to introduce a bill today to repeal the IRS 1099 filing requirement, acknowledging the legitimate protests but arguing that immediate action is not necessary. We have a year and a half to fix 1099, we don’t have any more time to help small business.”

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