From the office of Congressman Adam Kinzinger (R, ILL., 11th District)…
Washington, D.C. – Congressman Adam Kinzinger (IL-11) today released the following statement on H.R. 4, the Small Business Paperwork Mandate Elimination Act of 2011, legislation that would strip the 1099 requirement on businesses. H.R. 4 passed the House by a vote of 314 -112:
“Today’s House passage of the 1099 repeal brings us one step closer toward rolling back one of the most illogical requirements that Washington Democrats snuck into the health care bill last year. “This legislation is a significant step toward restoring confidence in our economy for small businesses as well as the taxpayers and would reduce federal spending by $20 billion over ten years and reduce taxes by $19.7 billion.
“As I travel around my district, I hear from job creators and small businesses like Ground Covers, in St. Anne, Illinois about the harmful rules and regulations Washington has placed on businesses. The owner of Ground Covers, Duane Oosterhoff, says the 1099 imposes an ‘insane amount of paperwork at a time when his business simply cannot afford more uncertainty.’
“All across the country, small business owners are estimating filling out between 10,000 and 20,000 tax forms per year after the 1099 takes effect. Mr. Oosterhoff said navigating through the endless piles of paperwork would be simply ‘unworkable’ and would require additional staff resources, which is something small businesses simply cannot afford right now.
“It is high time that Congress restore government back to its original intent– limited, effective and efficient. I look forward to working with my colleagues on both sides of the aisle to continue eliminating undue and unnecessary restrictions on job creation and growth in order to refuel our economic growth.”
- The 1099 requirement impacts small businesses disproportionally by requiring all businesses to file and collect 1099 tax forms for any businesses transaction of $600 or more per year.
- The 1099 requirements would impose a significant tax compliance burden on small businesses, forcing them to allocate additional resources for tax filing.
- Congressman Kinzinger is a cosponsor of H.R. 4, the Small Business Paperwork Mandate Elimination Act of 2011.
- According to the Joint Committee on Taxation, the 1099 repeal legislation would cut taxes by $24.7 billion over the FY 2011-FY 2021 period. In addition, reducing improper exchange subsidy overpayments will reduce excessive government spending by $24.8 billion over ten years. Thus, according to the Joint Committee on Taxation, the net impact of H.R. 4 will be a deficit reduction of $166 million.