|Published:||Jul 31, 2010 1:31 AM EDT|
|Updated:||Jul 30, 2010 10:34 PM EDT|
WASHINGTON, D.C. (AP) - The House has rejected a bill that would repeal a tax filing requirement in the new health care law that could swamp businesses with paperwork. The result, $19 billion in lost revenue over the next decade.
The provision requires nearly 40 million U.S. businesses to file tax forms for every vendor that sells them more than $600 in goods, starting in 2012. The goal was to prevent vendors from reporting less than their income.
Democrats and Republicans wanted to repeal the provision because they think it will create too much paperwork for small businesses. They disagreed on how to cover the cost.
Republicans want to repeal the filing requirement and pay for it by changing other parts of the new health care law.
Democrats want to pay for it by raising taxes on international corporations and limiting taxpayers' ability to use special trusts to avoid gifts taxes.
Neither party will support the other.