WASHINGTON, D.C. – U.S. Rep. Charlie Dent (PA-15) today voted for H.R. 4, the Small Business Paperwork Mandate Elimination Act, which repeals the arduous 1099 tax reporting provision included in the 2010 health care law. Under the current law, which Dent opposed during consideration in the U.S. House of Representatives, all businesses will be required to report payments and purchases for property, merchandise and services totaling $600 or more in a calendar year to the Internal Revenue Service (IRS) using a Form 1099. These new requirements are scheduled to begin in 2012.
“Businesses throughout the 15th District have called for the repeal of the disastrous 1099 provision since President Obama signed the health care bill into law a year ago,” Dent said. “By forcing businesses to comply with needlessly burdensome tax filing requirements, the 1099 provision would ultimately divert limited resources and energy away from employers’ efforts to grow and innovate.”
The National Taxpayer Advocate, an independent entity operating within the auspices of the IRS, estimates 26 million non-farm sole proprietorships, four million S corporations, two million C corporations, three million partnerships, two million farming businesses, one million charities and other tax-exempt organizations, and likely more than 100,000 federal, state, and local government entities will be impacted by the new filing requirements.
“Unfortunately, the 1099 provision exemplifies many of the misguided elements included in the new law,” Dent explained. “It stands in the way of economic growth and job creation, while doing nothing to decrease the cost of health care in the United States.”
H.R. 4 passed the House with wide bipartisan support by a vote of 314 to 112.
“I hope the strong support for this bill among House Democrats signifies they are willing to admit provisions included in the hastily-drafted health care law will be detrimental to the American economy. I am prepared to work in a bipartisan manner to eliminate or modify additional impediments and enact effective health care reform.”