Sen. Max Baucus, D-Mont., U.S. Senate Finance Committee chairman, and Sen. Mike Johanns, R-Neb., sponsored the two amendments, which would have been part of the food-safety legislation. Senate rules for these amendments required 67 votes for approval; however, both of the amendments fell short of the two-thirds requirement. The Baucus amendment was rejected by a vote of 53-44, and the Johanns amendment failed by a vote of 61-35.
Repealing the 1099 rule by approving the Baucus amendment would have lowered U.S. tax revenue by more than $19 billion over the next 10 years’ budget estimates. The Johanns amendment, however, would have been offset by using 5 percent of unobligated and unspent federal accounts.
Sen. Mike Enzi, R-Wyo., ranking member of the Senate Health, Education, Labor and Pensions Committee, opposed the reporting rule and said, “This new reporting requirement hits small businesses hardest because they typically don’t have in-house accounting departments and have to hire outside help. Government mandates, like the new 1099 requirement, have a real cost, and it is small businesses who end up having to pay them.”
More than 40 million organizations will be affected by the law, including government entities, nonprofit organizations and businesses of all sizes. To view further information on the Baucus and Johanns amendments, visit ASA’s legislative website at www.TakingTheHill.com.
