1099 Repeal Passes Senate, Awaits President's Signature

The Senate voted 87-12 Tuesday to repeal the 1099 regulation included in the Affordable Care Act that required businesses to file 1099 forms for purchases exceeding $600.

Florida Senator Marco Rubio (R) applauded the Senate for “finally correcting the mistake Washington made” regarding the 1099 provision, but added that health reform “in its entirety must be repealed and replaced.”

House Small Business Committee Chair Sam Graves (R-Mo.), a champion of the House bill that was passed earlier this year, joined in approval of the Senate’s vote.

“At a moment in history when we should be focused on reviving our economy, our federal government should be making it easier for small business owners to create jobs,” Graves said.

The legislation now heads to President Obama for signing. Obama has said that he does not agree with how Congress covered the $22 billion it will cost to repeal the provision, but after having released a statement applauding the Senate’s decision, it is unlikely Obama will utilize his veto power.

“We are pleased Congress acted to correct a flaw that placed unnecessary bookkeeping burden on small businesses,” White House press secretary Jay Carney said in a statement. “Eliminating the 1099 reporting requirement is the right thing to do.”