Last week, the U.S. House of Representatives passed a key piece of legislation, repealing a much-debated stipulation in last year's healthcare reform bill.
The so-called "1099 provision" was included in the bill as a means of paying for its nearly $1 trillion cost and called upon businesses to file a tax form for all transactions of $600 or more. Critics of the measure argued it would do little more than impose regulatory and financial burdens on small firms incorporating in California, New York and elsewhere.
"The 1099 mandate has been a major source of uncertainty for small businesses trying to grapple with the costs and consequences of the government takeover of healthcare," said House Speaker John Boehner after the vote.
While the measure passed in a sweeping 314-112 approval, it is unlikely to be taken up in its current form by the Democrat-controlled Senate.
"The fight over the 1099 repeal is illustrative of the power struggle between House Republicans and Senate Democrats this year," writes Corey Boles in the Wall Street Journal. "While both sides agree the measure should be scrapped, neither party wants to be seen to give the other side an easy political victory."
Tags : business licenses & permits, ca, ny, small business management, taxes
Posted: Mar 7th, 2011