We apparently haven’t seen the last of the efforts to repeal Section 9006 of the Patient Protection and Affordable Care Act. If the name doesn’t ring a bell, it’s better known as the provision in the health care law which expands existing reporting requirements for businesses to issue forms 1099 to individuals and corporations providing more than $600 in goods or services during the year. My colleagues in the tax world have another name for it but my mother could be reading.
Let’s just say that nobody particularly cares for the provision. Small businesses hate it. Tax pros hate it. The President isn’t fond of it. And Congress is trying to get rid of it.
Fun Fact: Congress passed it in the first place. And the President signed it. Just saying.
A lot can happen in a year. People could, oh say, read the darn thing and perhaps get a little worked up. And those people might be voters – which brings us to today.
The Ways and Means Chair, Rep. David Camp (R-MI), is trying to push a repeal of Section 9006 through the House. But as with everything else, it’s not that simple. Republicans in the House have tacked on a corresponding revenue raising provision inside the repeal that the Democrats aren’t happy about. That provision is a fairly aggressive “clawback” measure that would require repayment of federal subsidies for health care credits.
The measure – with the controversial clawback provision in place – made it out of Committee on a partisan vote. It next goes to the floor for a vote. Rumor has it that the vote could come as early as the last week in February. I wouldn’t bet on that happening. There’s a lot to fight about first.
Also a concern: the House version of the repeal doesn’t match the Senate version of the repeal which passed earlier this month.
There’s clearly room for compromise in here somewhere. Let’s hope that Congress can find it.
