Tax

Obama signs healthcare tax repeal into law

Reuters News
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Posted: Apr 14, 2011 5:43 PM

WASHINGTON (Reuters) - President Barack Obama on Thursday signed into law a bill changing his signature healthcare legislation to repeal a tax measure that business groups said would cause an avalanche of paperwork.

"I was pleased to take another step to relieve unnecessary burdens on small businesses," Obama said in a statement.

"Small business owners are the engine of our economy and because Democrats and Republicans worked together, we can ensure they spend their time and resources creating jobs and growing their business, not filling out more paperwork," he said.

The law repeals a requirement in last year's healthcare overhaul for businesses and landlords to file a Form 1099 document with the Internal Revenue Service for purchases of goods and services exceeding $600 a year.

The tax reporting provision was meant to improve tax compliance and help pay for the healthcare law, but small firms and the self-employed complained it would bury them in paperwork.

Obama promised to continue working on that issue.

"I look forward to continuing to work with Congress to improve the tax credit policy in this legislation and I am eager to work with anyone with ideas about how we can make healthcare better or more affordable," he said.

(Reporting by Tabassum Zakaria; Editing by Eric Walsh)