House Democrats proposed repealing a piece of the health care overhaul Friday, a move designed to thwart Republican efforts to do the same thing and declare an early victory in their efforts to repeal the whole law.
Democrats proposed repealing new IRS reporting requirements that small business has warned would be overly burdensome. But they attached a new tax on Americans conducting business overseas— essentially a poison pill for Republicans who are unlikely to support a new tax.
The Democrats hold the majority in the house, but it was brought up on a procedural rule requiring two-thirds support. It failed, 241-154, largely on party lines with Republicans in opposition.
It is nevertheless the first time Democrats have gone on record in support of repealing a piece of the health care law, which was passed just four months ago.
Neither party really likes the provision of the health law at issue, which would require businesses to file 1099 tax forms for all transactions with vendors that cumulatively total over $600.
Due for implementation in 2012, the 1099 provision would raise $19 billion over 10 years to pay for the health care overhaul.