House Republicans Target Another Barrier To Job Creation
Today, the House will repeal the job-crushing 1099 provision, a “massive, hidden tax change” that Democrats slipped into their failed healthcare plan. It’s just one of the many onerous barriers to job creation Democrats put in place that House Republicans are working hard to eliminate.
A quick reminder of the damage the tax provision would have created for small businesses and job creators:
The Democrats’ Failed 1099 Provision Would Have Swamped “U.S. Businesses With A Flood Of New Tax Paperwork.” “An all-but-overlooked provision of the health reform law is threatening to swamp U.S. businesses with a flood of new tax paperwork. … The stealth change radically alters the nature of 1099s and means businesses will have to issue millions of new tax documents each year.” (Neil DeMause, “Health Care Law’s Massive, Hidden Tax Change,” CNNMoney.com, 5/5/10)
More Than 37 Million Small Businesses Would Have Been Affected By The Law, Which Required Businesses To File Paperwork For Routine Purchases Of Goods And Services That Exceed $600. “Buy one airline ticket at $600, for example, and a business would have to file a form with the IRS and send one to the airline itself. Ditto if a small company buys $600 worth of sandwiches from Subway, spends $600 a year for Starbucks coffee or purchases $600 of gas at the nearly Shell station. More than 37 million small businesses, historically a major engine of U.S. job growth, would be affected nationwide.” (Jeffry Bartash, “Pressure Builds On Congress To Junk ‘Nightmare’ Tax Rule,” MarketWatch, 8/4/10)
- An IRS Ombudsman Estimated That The Law Would Have Hit 26 Million Sole Proprietors. “An IRS ombudsman estimated that 40 million businesses, including 26 million sole proprietors, will be affected. Chris Walters of the National Federation of Independent Business pointed to owners such as Pat Felder of Baton Rouge, who estimates that her auto parts supply business will have to start filing 1099s on several hundred vendors - including office supply stores, gas stations, even the grocery where she gets meat for company barbecues.” (N.C. Aizenman, “Health-Care Funding Provision Could Face Repeal,” The Washington Post, 8/29/10)
Business Owners Predicted That They Would Have Needed To Fill Out Between 10,000 And 20,000 Tax Forms Per Year Because Of The Law. “Pat Heller, who owns Liberty Coin Service in Lansing, Mich., deals with around 1,000 customers every week. Many are individuals looking to protect wealth in an uncertain economy, he said, while others are dealers like him. . . . With spot market prices for gold at nearly $1,200 an ounce, Heller estimates that he'll be filling out between 10,000 and 20,000 tax forms per year after the new law takes effect.” (Rich Blake, “Gold Coin Sellers Angered By New Tax Law,” ABC News, 7/21/10)