Senate clears 1099 repeal for White House

Some Democrats and the White House have expressed concern over the offset in the House bill, although Republicans argued that the same pay-for was offered by Democrats last year to pay for the Medicare “doc fix.” 

The House’s measure requires taxpayers who receive federal health insurance subsidies to reimburse the IRS if they earn more than 400 percent of the poverty line and are then deemed ineligible. 

Some House Democrats had argued that the bill’s offset creates a $25 billion tax hike on the middle class because it could ensnare taxpayers who straddle the 400 percent income line, saying that a mere year-end bonus could push taxpayers “over the cliff” and force them to repay the money.