NEW YORK (CNNMoney.com) -- The Senate failed Monday night to pass two measures that would have repealed a law that businesses big and small say will cost jobs.
Starting in 2012, businesses will be required to issue 1099 tax forms not only to contracted workers (as they already do) but also to any individual or corporation from which they buy more than $600 in goods or services in a year.
The provision was adopted in March as part of the massive health care reform law.
Introduced by Democratic Sen. Max Baucus, the Finance Committee chairman, and Republican Sen. Mike Johanns of Nebraska, the amendments represent the second effort in the Senate to repeal the measure. Similar amendments were shot down in September.
The 1099 reporting requirement is expected to raise about $17 billion over 10 years by increasing tax compliance, but small business owners have argued the measure would increase paperwork, and drive up costs.
The U.S. Chamber of Commerce, which represents business interests in Washington, expressed hope that lawmakers will repeal the measure when the new Congress convenes in January.
"In this economy, there is no justification for supporting unnecessary regulations on small businesses that will hamper their ability to get Americans working again," Chamber of Commerce executive vice president for government affairs R. Bruce Josten said in a statement.
While there are no immediate plans to reintroduce legislation to repeal the measure, Johanns remains committed to finding a resolution, an aide to Johanns told CNNMoney.
The next effort might get a boost if the White House chooses to make it a priority.
Earlier this month, one day after after suffering a "shellacking" in the congressional election, Obama announced that he would support repealing the measure in the spirit of helping the business community.
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||3.84%||3.85%|
|15 yr fixed||2.96%||2.96%|
|30 yr refi||3.95%||3.96%|
|15 yr refi||3.06%||3.06%|
Today's featured rates:
The Force wasn't the only thing to awaken just after midnight on September 4. Cash registers sprang into life as fans flocked to buy new products tied to the latest Star Wars move. More
The Labor Department releases its August jobs report on Friday, and it will have big implications for the Federal Reserve. More
The Samsung Gear S2 is a smartwatch that will make both gadget lovers and watch lovers happy. More
The BauBax travel jacket, with 15 built-in features, needed $20,000 on Kickstarter, but got $9 million. More
Pimco's famous fund once managed by star manager Bill Gross has less than $100 billion in management for the first time since 2007. More