Lawmakers fail to repeal provision designed to help finance healthcare reform

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Sen. Max Baucus (D-MT)
Sen. Max Baucus (D-MT)

The Senate failed to muster the votes Monday to repeal an unpopular tax reporting mandate that was passed to help finance the healthcare reform law.

The Democrats' plan, introduced by Sen. Max Baucus (D-MT), collapsed by a vote of 53 to 44. A Republican plan also was defeated by a vote of 61 to 35. The Republican proposal, introduced by Sen. Mike Johanns (R-NE), would have offset the lost revenue with unspent or unobligated federal funds, as determined by the director of the Office of Management and Budget. The tax reporting provision requires that businesses that spend a cumulative total of $600 or more with one vendor, contractor or supplier file a 1099 tax form with the Internal Revenue Service identifying recipient of the money, according to The New York Times.

Opponents of the law argued that it was an “intrusion on free enterprise.” Another proposal for repeal of this provision is likely to come down the pipeline, the newspaper reported. Republicans, who will take over Congress next year, have been calling for repeal or overhaul of the healthcare reform law.

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