Ways and Means Committee passes 1099 repeal

The House Ways and Means Committee passes a bill to get rid of a health law provision requiring business to report some purchases.

Politico: House Panel Sends 1099 Tax-Reporting Repeal To Floor
The House Ways and Means Committee approved a bill Thursday to repeal the widely unpopular tax reporting provision in the health care law, despite paying for it with what Democrats labeled a "middle-class tax increase." The dispute, likely to play out again when the legislation repealing the 1099 provision reaches the House floor, centers largely on how much money consumers earning between 400 percent and 500 percent of the federal poverty level would have to repay the government for overpaid tax subsidies. Consumers will get the subsidies in 2014 to help them buy health insurance (Haberkorn, 2/18).

Bloomberg: U.S. House May Cancel Tax-Reporting Rules In Health-Care Law Next Month 
The U.S. House of Representatives will vote as soon as next month on a measure to eliminate a tax-reporting requirement from last year's health-care law that is opposed by many small businesses. Members of both parties have criticized the rules, which require that businesses report to the government payments to corporations for goods or property exceeding $600 per payee each year. Companies have been complaining about the requirement, which they say would create an onerous paperwork burden, particularly for small businesses (Rubin, 2/18).