Senators introduce bipartisan 1099 repeal bill

Senators set the stage Tuesday for another showdown over striking down an unpopular IRS filing requirement included in the healthcare reform law.

Senators reintroduced bills that would eliminate the 1099 requirement for businesses to report annual purchases of at least $600 from each vendor. Most Democrats, including the Obama administration, support repealing the provision, but lawmakers have clashed over how to offset the $19 billion in lost revenue. 

A bill introduced Tuesday by Sens. Mike Johanns (R-Neb.) and Joe Manchin (D-W. Va.) authorizes the Office of Management and Budget to identify unobligated federal funds to cover the cost of repeal.

"It's a bad policy; it hurts businesses and it should be repealed, enough said," Johanns said in a conference call with reporters.

The measure has 52 co-sponsors including 12 Democrats: Sens. Mark Begich (Alaska), Michael Bennet (Colo.), Maria Cantwell (Wash.), Kay Hagan (N.C.), Amy Klobuchar (Minn.), Manchin, Ben Nelson (Neb.), Mark Pryor (Ark.), Debbie Stabenow (Mich.), Jon Tester (Mont.), Mark Udall (Colo.), Mark Warner (Va.).

Congressional Republicans, Democrats and the White House have called the provision "burdensome." Although a repeal of the provision has bipartisan support, lawmakers couldn't reach an agreement last year. 

"We've never had this much support, so I'm very encouraged," Johanns said. 

Senate Finance Chairman Max Baucus (D-Mont.) also plans to introduce a measure.

Both parties have seized on the 1099 requirement to score political points. Republicans are posing repeal of 1099 as part of their promise to chip away at the reform law, while Democrats are touting it as a sign of their willingness to improve the current law.

Jason Millman contributed to this article.

This article was updated at 1:40 p.m.