Well, we are at it again. Supporting another legislative measure to repeal the nightmarish and much reviled 1099 reporting mandate in the new health care law.
SBE Council sent a KEY VOTE letter today to all U.S. Senators urging their support for the Johanns Amendment (#161) to the small business research legislation that is being debated in the Senate. The amendment will repeal Section 9006 of the Patient Protection and Affordable Care Act (PPACA) – a reporting mandate that will vastly increase costs and paperwork burden, while compelling small business owners and individuals to devote significant time and resources on tedious compliance tasks rather than productive work.
SBE Council will KEY VOTE the Johanns Amendment for our Small Business Ratings of the 112th Congress. A vote for the amendment is a vote for our nation’s entrepreneurs.
Another amendment offered by Senator Menendez may also be considered. This merely studies the issue, which would prolong uncertainty and force small business owners to expend resources in preparation for potential compliance in the future. Small business owners oppose anything less than complete, immediate and certain repeal of Section 9006 of the PPACA. Therefore, SBE Council will KEY VOTE the Menendez amendment as a vote against small business.
As SBE Council noted in our letter to all U.S. Senators:
"The expanded 1099 reporting provision in the PPACA mandates that small business owners file a 1099-MISC to the Internal Revenue Service (IRS) for all payments made to vendors totaling $600 or more in a tax year. Does it really take a government study to understand the obvious burden this will place on small business owners?
"As the SBA Office of Advocacy has found in its research, small firms are disproportionately impacted by federal regulation. In the case of tax compliance, these costs are 67 percent higher for small firms than for larger businesses.
"SBE Council surveys of member companies found that the mandate will increase the paperwork burden by more than 1000 percent for some firms, while accounting costs will double and quadruple in many cases. Business owners report that they will cut jobs, raise prices and be forced to devote more of their personal time to mind-numbing paperwork, which means their energy, passion and expertise will not be focused on growing their firms."
There may be a chance that the Senate moves to "deem passed" the House-passed bill (H.R. 4), which also repeals expanding 1099 reporting on rental property that was included in the "small business jobs act" passed in September of last year. This would be fabulous, as the legislation would then quickly move to the President's desk for his signature.
Let's repeal this thing!
Karen Kerrigan, President & CEO