By David A. Kindig, MD, PhD
On September 14, 2010, the U.S. Senate will vote on two opposing amendments to the Small Business Jobs and Credit Act of 2010. The outcome could save or eliminate the $15 billion that has been set aside through the Prevention and Public Health Fund to support national, state, and local programs to promote health and reduce health disparities.
At issue is a small tax reporting provision within the Patient Protection and Affordable Care Act (PPACA). Specifically, the provision mandates that businesses, charities, and state and local governments file one form 1099 for each business providing in excess of $600 in property, goods and services (the current requirement is for services only and has been associated with significant underreporting).
There is bipartisan consensus that the new provision (scheduled to go into effect in 2012) excessively burdens small businesses with paperwork, but differences in the two proposed solutions are dramatic.
On one side is Senator Mike Johanns (R-NE), who is calling for a full repeal of the tax reporting requirement. He proposes to make up the lost revenue by completely eliminating the $15 billion Prevention and Public Health Fund and by lowering the individual mandate from 8% to 5% of income.
Senator Bill Nelson (D-FL) has offered a competing amendment that keeps the Prevention Fund intact. Nelson’s amendment scales back the reporting requirements: businesses with fewer than 25 employees would be exempted from the reporting, and the reporting threshold would be increased from $600 to $5,000 per vendor or service provider. Senator Nelson’s amendment proposes to make up lost revenue by repealing tax cuts for the five largest oil companies.
The Senate will vote on both amendments on September 14. Each will require 60 votes to pass, and the voting is likely to be close.
Please contact your senators to express your concerns and let them know how you’d like them to vote next week.
David A. Kindig, MD, PhD, is Emeritus Professor of Population Health Sciences and Emeritus Vice-Chancellor for Health Sciences at the University of Wisconsin School of Medicine and Public Health.
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