Johanns sets sights on health care law

WASHINGTON — Sen. Mike Johanns, R-Neb., may be making some progress in his attempt to repeal a section of the health care law giving tax headaches to small-business owners.

Johanns has proposed an amendment to repeal Section 9006 of the law, which greatly expands the types of transactions that firms must report on federal tax forms.

Johanns spoke about the amendment with Capitol Hill reporters Wednesday alongside Sen. Lamar Alexander of Tennessee, the No. 3 Republican in the Senate.

“This is a priority of the Republican leadership to give the Senate an opportunity to vote on this before the end of August,” Alexander said.

The section Johanns has targeted requires businesses to report to the Internal Revenue Service any time they purchase more than $600 worth of goods in a year from one vendor. The new requirements are aimed at closing what is often called the “tax gap,” or the difference between the taxes that businesses owe and what they actually pay.

It represents one of the ways Congress was able to produce $17billion in government revenue to help pay for the health care bill without raising taxes.

Johanns said he came up with two other sources for the $17billion.

The first would adjust the health care bill's individual mandate to purchase insurance so it will apply to fewer people. He also would delay, but not eliminate, billions of dollars in the health care bill dedicated to “wellness.”

“I'm not against wellness, obviously, but I think we're going to buy jungle gyms and that sort of thing,” Johanns said of the wellness spending. “I don't think we have a clue what to do with that.”

It's still unclear whether Johanns' proposal will come up for consideration. He said he expects small-business owners to continue increasing pressure on senators from other states.

“At some point before the August recess, this just must come up for a vote,” Johanns said.

Contact the writer:

202-662-7270, joe.morton@owh.com

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