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1099 REPEAL ONE STEP CLOSER TO CONGRESSIONAL FIGHT

Posted by Admin Posted on Mar 02 2011

The House of Representatives is expected to pass its version of repealing the new 1099 rules.

The rub is paying for it.  The Senate version relies on unspecificed cuts in the budget to be decided by the Executive Branch.  The House version tries to recapture a larger percentages of subsidiy overpayments to consumers under last year's health care reform.  Democrats call this a tax on the middle class.

To get budget neutrality, the House leadership took a spending offset in another bill and moved it to the 1099 repeal.

The Senate version is tied up in an appropriation bill for the Federal Aviation Administration, which could delay a Senate vote on repeal.  Once it does pass, the repeal will go to a conference committee to negotiate final language, including how to fund repeal.

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