LATHAM VOTES TO IMPROVE JOB CLIMATE THROUGH ELIMINATION OF 1099 REQUIREMENT
Washington, Mar 3 – Iowa Congressman Tom Latham stood with Iowa small and independent businesses on Thursday to eliminate a job-destroying provision tucked into last year’s health care law that buries small and independent businesses under an avalanche of new tax paperwork.
The health care law includes features that expand tax reporting rules, including a requirement that all businesses, regardless of size, file 1099 forms with the IRS for any payments to corporations that exceed $600. Previous law required such forms to be filed only when making payments to individuals or unincorporated businesses. The new reporting regulation creates a monstrous new paperwork burden for small and independent businesses that must devote a significant amount of extra time and resources toward conforming to the new law rather than expanding their business and creating jobs.
The 1099 provision, while having nothing to do with health care or health care reform, was included in the trillion-dollar health care reform bill last year under the assumption that it would capture additional revenue, making the overall legislation appear less costly.
The U.S. House of Representatives voted 314 to 112 to eliminate the 1099 provision, sending the issue to the U.S. Senate for consideration.
“The House of Representatives has taken an important step toward strengthening the economic climate and giving employers the certainty they need to create jobs,” Congressman Latham said after the vote. “Rather than drown small businesses in a flood of new paperwork, I voted to take the reporting requirement off the books so employers can focus on growing and investing in our communities. The misguided 1099 provision has amplified the uncertainty in our economy at a time when American families are asking where the jobs are. It would be nothing short of irresponsible to let this onerous regulation stand.”
Source: Congressman Tom Latham
