On the recordMarch 3, 2011
There is widespread bipartisan agreement that the 1099 reporting rules need revision. In fact, the agreement is so widespread that I'm mystified why we're having this debate. The Senate passed a repeal of this policy earlier this year on a bipartisan basis. The House, last year, failed to pass a repeal of the provision only because of Republican opposition. But now we all agree, let's repeal it. What's the hang-up? The hang-up is the Republicans want to pay for this business tax cut on the backs of lower- and middle-income families. This bill would increase taxes by $25 billion in total on families earning less than $110,000. Families with incomes around $90,000 per year could see increases in taxes of $3,000, according to the Joint Committee on Taxation. This is a remarkable piece of legislation because it unwinds a near-unanimous agreement that we had last year. This policy wouldn't just increase taxes. It would discourage enrollment in health plans in health exchanges. Under the Republican proposal, people who are eligible for tax credits would have to think very hard as to whether they were estimating their income accurately.
