Congressman Palazzo Votes to End Small Business Burden
Washington, D.C. – Congressman Steven Palazzo (MS-04) issued the following statement after the House passed the repeal of the IRS 1099 provision in the Democrats’ Health Spending law today:
“While I remain committed to the full repeal and replacement of the Democrats’ government takeover of health care law, today’s vote is good news for Mississippi small businesses and those looking for work. This repeal legislation is dedicated to protecting small businesses, their workers, and American taxpayers. Not only does it reduce the deficit by $166 million in the first ten years, but this repeal reduces federal spending by $20 billion over the next decade and will reduce taxes by $19.7 billion,” Palazzo said.
“Nearly 65 percent of all new jobs over the past 15 years were created by small businesses, yet the average small business with less than 20 employees already faces an annual cost of $10,585 just to keep up with the regulatory compliance paperwork for every worker they employ. Adding this additional 1099 requirement is another example of how out of touch Washington was with the rest of America,” Palazzo said.
A recent National Federation of Independent Business (NFIB) Small Business Survey determined that tax paperwork, costing $74 an hour, is the most expensive burden placed on small businesses by the federal government. Dan Danner, president and CEO of the organization praised Congressman Palazzo for supporting the 1099 repeal.
“NFIB commends Congressman Palazzo for standing up for small business and voting to repeal the 1099 provision in the health care law. Repealing the expanded 1099 reporting requirements is a must-do if we are to help save small businesses from this mountain of paperwork,” Danner said.
Section 9006 of the President’s health care law expands information reporting requirements to the Internal Revenue Service (IRS) for business transactions in excess of $600 in goods or services. Starting in 2012, the new health care law mandates that all businesses file an IRS Form-1099 for any vendor with which they have more than $600 in yearly transactions.