WASHINGTON, Aug. 6 (UPI) -- U.S. Senate Democrats say they want to roll back a part of the healthcare reform measure that critics say would put new tax burdens on small businesses.
Sen. Bill Nelson, D-Fla., introduced the proposal with the support of Democratic Party leaders to remove a new tax-filing requirement that many in the business community have characterized as a "job killer." The Hill reported Friday.
At issue is a provision in the healthcare reform bill requiring businesses to file 1099 forms with the Internal Revenue Service when goods purchased from another business exceed $600 in a year. Under previous law, the reporting requirement pertained only to services exceeding that amount, not goods.
Senate Minority Leader Mitch McConnell, R-Ky., denounced the tax provision this week, saying it would create "an enormous amount of paperwork and complexity" for the country's small businesses.
Republicans weren't alone in criticizing the new tax requirement.
Sen. Blanche Lincoln of Arkansas Thursday became the first Democrat to call for removing the filing requirement.
"No piece of legislation is ever perfect, and it's important we take steps to make improvements where we can," Lincoln said.
