Yesterday, in President Obama’s press conference he mentioned the possibility of eliminating the health care bill’s onerous 1099 provision — which requires small businesses to submit a 1099 form to the IRS every time they make an expenditure of $600 or more — as point of potential comprise with the GOP on health care reform. (Of course, it wasn’t that long ago Democrats were protecting the provision from GOP attempts to repeal it, but funny how post-election the President seems a bit more flexible on the matter.)
In any event, soon-to-be-former Speaker of the House Nancy Pelosi just gave an interview to Diane Sawyer at ABC News where they discussed health care reform:
So, I– I don’t– I don’t– think they’re going to take health care apart. There are certain parts of it that we all may want to review– one way or another. Put it up there. But the fundamentals of it, you know, when we have our patients’ bill of rights about no preexisting conditions, and those provisions, they are– they cannot be there unless you have this basic structure of health care reform.
So, when we have this debate piece by piece, I think the American people will see how they like pieces of it, and how they relate to each other. And that some of that– you know, a 1099, it was a Senate provision. We didn’t like it in the House. The President mentioned it today. We’ve already passed on the floor– the repeal of 1099 in the House of Representatives. So, you know, there are certain pieces of it that should always be subjected to review.
Um, okay. First, Pelosi’s flat out wrong about one thing. The 1099 provision was included in the language of the House bill, perhaps Pelosi will get around to reading it one of these days. As for whether the House has passed a repeal of the 1099 provision, I don’t know what she’s talking about either. Republicans attached a motion to recommit the 1099 provision to H.R. 5893 over the summer. Rather than allow the 1099 provision to be repealed, Democrats pulled the bill. It was brought up again shortly afterward and it failed to garner the two-thirds needed for passage because Democrats used tax increases elsewhere to make up for the money that would be lost.
Pelosi can spin all she wants, but the President’s concession on the 1099 provision should be seen for what it is — a total about face on the issue.