People walk past the U.S. Capitol on election day in Washington November 2, 2010.    REUTERS/Jonathan Ernst    (UNITED STATES - Tags: POLITICS ELECTIONS)

People walk past the U.S. Capitol on election day in Washington November 2, 2010. REUTERS/Jonathan Ernst (UNITED STATES - Tags: POLITICS ELECTIONS)

Senate Passes 1099 Repeal Bill

By Features FOXBusiness

The Senate voted 87-12 to repeal the unpopular 1099 provision of the Affordable Health Care Act, Tuesday. This is the first piece of legislation that officially repeals part of President Obama's widely-debated health-care reform movement.

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Small business owners have expressed their frustration at the provision, which would require them beginning in 2012 to report to the IRS all payments of more than $600 on 1099 forms—work that many small companies just don't have the time or manpower to do.

"It's a reporting requirement. I call it a snitch act. It's basically assuming the people you do business with are cheating," said Rep. Dan Lungren (R-CA.) "So therefore, the government requires paperwork on your side because of something they believe may or may not be occurring with respect to somebody on the other side of a business transaction."

The House of Representatives took the first step in repealing the provision in early March. President Obama has also said he will sign it, FBN's Peter Barnes reported.

"The President thinks it's bad. Democrats think it's bad. Republicans think it's bad. Even the Senate thinks it's bad," said. Rep. Charles Boustany (R-LA). "It's taken long enough to move on this. Let's do it. Let's get it done."

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The bill would have generated an additional $22 billion in tax payments over the next ten years, according to The Washington Post. The president is expected to sign the bill.

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