The Senate this afternoon voted to pass HR 4 by an overwhelming margin and for the first time sent a 1099 reporting requirement repeal to the President’s desk. HR 4, sponsored by Congressman Dan Lungren (CA-3) and a bipartisan list of members of Congress, repealed the expanded 1099 reporting requirements contained in last year’s health care law and the small business lending bill. The cost of repealing the 1099 reporting was a change to the health care subsidy given to low-income individuals in the health care exchanges.
“After a nearly year-long battle, today’s vote is a major victory for America’s small businesses and the workers they employ,” said House Ways & Means chair Dave Camp (MI-4) in a statement.
Repeal of the new 1099 reporting requirements was a top priority for the association community. In the 2011 ASAE advocacy survey, 85% of ASAE member CEO’s said the requirement should be completely repealed by Congress. Additionally, 1099 repeal was a top legislative issue for association advocates attending American Associations Day 2011, ASAE’s legislative fly-in held last week in Washington DC. ASAE also delivered a letter to Congress in February urging repeal that was signed by over 1,000 associations and nonprofits.
HR 4 now goes to the President for his signature. The White House issued a Statement of Administration Policy earlier this year expressing concern with HR 4′s pay-for, but did not issue a veto threat. The President is expected to sign HR 4 into law.