Senate Rejects Johanns Amendment

By AJ Swartwood - Talk Radio News Service

On its first day back in session, the Senate defeated an attempt to remove a controversial tax-filing provision from the healthcare law passed earlier this year.

The 52-46 vote blocked an amendment by Sen. Mike Johanns (R-Neb.) aimed at preventing businesses and non-profits from being required to file 1099 tax forms on all capital purchases totaling over $600 per year. That provision, according to Democrats, would generate $17 billion over the next decade to help pay for a prevention and wellness fund established within the healthcare law. Johanns proposed offsetting the cost of his amendment by cutting that fund.

After the vote, Johanns took a partisan tone while expressing disapointment over the failure of his effort.

“Today’s vote signifies that Senate Democrats and the Obama Administration would rather protect a section of their more than 2,400 page unpopular health care bill than stand up for small businesses.”

Meanwhile, the vote was met with applause from Tom Harkin (D-Iowa), Chairman of the Senate Health Committee and the Appropriations subcommittee that funds health initiatives.

“This amendment perpetuated the disastrous notion that we can neglect and de-fund prevention efforts without paying a huge long-term cost in unnecessary chronic disease and disability,” Harkin said. “It was Ben Franklin who said, ‘An ounce of prevention is worth a pound of cure.’ Today, the Senate upheld that principle and preserved the Prevention and Public Health Fund.”

Several Democrats voted for the amendment, including Evan Bayh (Ind.), Michael Bennet (Colo.), Blanche Lincoln (Ark.), Ben Nelson (Neb.), Mark Pryor (Ark.), Mark Warner (Va.), and Jim Webb (Va.).

With the amendment off the table, Senate Democrats will aim to pass a small business assistance bill either by the end of this week or early next week.