Orrin Hatch: “today we will vote on the Menendez amendment and then on Senator Johanns' amendment to repeal the 1099 tax increase…”

“today we will vote on the Menendez amendment and then on Senator Johanns' amendment to repeal the 1099 tax increase provisions of the health spending law and the small business law. As you know, the health spending law was enacted a little over a year ago, and we are already here trying to undo some of the damage that this massive law has imposed on small businesses. We have heard from small business owner after small business owner who was shocked and frustrated to learn the 1099 provision in the health spending law would require small businesses to send out a much larger number of IRS Form 1099s. This provision was a counterproductive assault on businesses, and it was unleashed for one reason: to provide the dollars to pay for ObamaCare's $2.6 trillion in new spending; in other words, to try and back up that spending. Just to be clear, this is what this provision requires: Starting on January 1, 2012, if a business pays at least $600 in total in 1 year to a single payee, that business must send an IRS Form 1099 to the IRS as well as to that payee. Since businesses frequently pay at least $600 in 1 year to all kinds of different payees, this means the health spending law has created an enormous paperwork burden on our businesses, including many small businesses.…”