Senate axes try to strip tax requirement

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WASHINGTON, Sept. 14 (UPI) -- The U.S. Senate defeated an attempt to strip a tax-filing requirement provision from the sweeping healthcare reform law.

Lawmakers, on a 52-46 vote, blocked an amendment offered by Sen. Mike Johanns, R-Neb., what would have removed businesses and non-profit groups from having to report small- and medium-sized purchases to the Internal Revenue Service, The Hill reported.

The provision, expected to raise $17 billion over a decade to fund a new prevention and public healthcare fund, requires businesses and other entities to file 1099 tax forms on single-supplier purchases totaling more than $600 in a year.

Senators also blocked an amendment sponsored by Sen. Bill Nelson, D-Fla., that would have increased the reporting threshold to $5,000 and dropped the reporting requirement for businesses with fewer than 25 employees.

The votes puts the Senate on track to pass small-business assistance legislation by early next week, The Hill reported.

The small-business package would provide $12 billion in tax cuts to small businesses, establish a $30 billion Small Business Lending Fund, allow businesses to write off up to $500,000 in capital investments and 50 percent of the cost of new equipment, and increase the small-business start-up deduction to $10,000.