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.

Obama: We've Stopped The Bleeding, More Must Be Done

President Barack Obama spoke Monday in Fairfax, Va. where he told a group of local residents that his economic policies have “stopped the bleeding” from an economy nearing a state similar to that of the Great Depression. 

Obama reiterated to guests that the rate of recovery has not met his expectations and making up for the 8 million total jobs lost is an “enormous challenge.”.

“The fact of the matter is the pace of improvement has not  been where it needs to be and the hole that we had dug ourselves in was enormous,” Obama said. 

The president called on a Congress fresh off its August recess to pass a small business jobs bill that he said would offer businesses more assurance in prospective tax cuts, giving them more incentive to hire new employees. 

“Pass this bill, I will sign it into law the day after it’s passed or the day it is passed,” Obama said. “Right away, I think a lot of small businesses around the country will feel more comfortable about hiring and making investments.”

Obama also told the small group of northern Virginia residents that a Republican backed extension of Bush-era tax cuts is too expensive for the country.  The president said that his administration is still “in this wrestling match with John Boehner and Mitch McConnell” over extending tax cuts for the richest two percent of Americans. 

“We just can’t afford it,” Obama said.