Reid: Senate to vote on 1099

The Senate is set to vote today on three proposals for repealing a widely loathed tax reporting requirement included in healthcare reform, Senate Majority Leader Harry Reid (D-Nev). told reporters this afternoon.

Both Democrats and Republicans favor repeal of the so-called 1099 reporting requirement, but they disagree on how to fund its repeal.

According to Reid, the Senate will vote on a proposal most House Democrats rejected earlier this month because it taps into subsidies for individuals to purchase health insurance on new exchanges created by healthcare reform. The plan from Sen. Mike Johanns (R-Neb.) would require individuals to pay back a greater amount of the subsidy if they exceed the earnings limit.

The Senate, Reid said, will also vote on an amendment from Sen. Robert Menendez (D-N.J.) that would halt the Johanns' pay-for if a study concludes it is too onerous.

The Senate will also vote on a plan from Sen. Max Baucus (D-Mont.) that would repeal the 1099 requirement without paying for it.

Scheduled to start in 2012, the 1099 provision requires business to file with the IRS annual purchases of goods or services that exceed $600. The provision quickly became unpopular with businesses, and the Obama administration has repeatedly called for its repeal. However, the White House has expressed serious concern about the Johanns pay-for, but it stopped short of issuing a veto threat.

This article was updated at 4:40 p.m.