The House just approved a bill to do away with the expanded 1099 reporting requirements, and the Senate passed its own measure last month. Problem is, the Obama administration isn’t crazy about either one.
The House bill, H.R. 4, “The Small Business Paperwork Mandate Elimination Act of 2011, was introduced by Rep. Dan Lungren (R-Calif.) and was approved by a vote of 314-112.
While every Republican approved the bill, a number of Democrats opposed it — mainly because they feel it would impose hefty tax increases on middle-class taxpayers.
The House is hoping the Senate will act quickly and approve their 1099 repeal bill, so the bill can be sent to the President in the near future.
But when it comes to recouping the revenue the expanded 1099 reporting requirements would generate, the Obama administration opposes both the Senate and the House bill. The administration says the House bill “would result in tax increases on certain middle-class families” and the Senate version “could cause serious disruption in a wide range of services.”