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Posted by Admin Posted on Jan 21 2011

There is a growing and bipartisan effort to repeal new 1099 reporting rules that are part of the health care reform legislation passed by Congress last year.  But the political question to be answered is whether Congress will be unable to pass something both Republicans and Democrats want to pass.  Bipartisan gridlock may have arrived!

Three Democratic Senators have signed on as cosponsors of a Republican proposal to repeal the new rules.  Three other Democratic senators have sent a letter to House Speaker John Boehner (R-OH) urging him to send a stand alone repeal measure to the Senate.

Boehner responded through a spokesman that he supports repealing the 1099 provision, but "it is far from the only job destroying provision in Washington Democrats law."  The spokesman did not explain which provisions of health care reform destory jobs, but added that the best course for the Senate would be to pass the complete repeal passed by the House this week.  Senate Majority Leader Harry Read (D-NV) has already said that bill will not be presented to the Senate, and President Obama has already promised to veto repeal if it does pass both houses.

There are now two things holding up repeal.  Under "pay as you go rules", lawmakers have to make up the projected revenue loss from repealing the new rules.  It remains to be seen whether House Republicans will play chicken with the 1099 repeal - offering it only in the context of complete repeal rather than a stand alone bill.