News Home

     Contact: 202-225-2071                 

Supports bill to repeal health care bill’s “1099” tax mandate on job creators

Congresswoman Virginia Foxx today voted for a bill (H.R. 4) to eliminate a provision of the 2010 health care overhaul that created a massive new paperwork burden for businesses.  Know as the “1099” provision, it required business to file millions of new tax forms with the IRS, a burden that fell hardest on small businesses. 

“North Carolina small businesses and job creators hated this ridiculous new paperwork mandate—and they let me know about it,” Foxx said.  “Rather than give Americans another reason to hate our tax system, the House did the right thing and repealed this job-killing mandate.  No longer will small businesses have to spend hours and hours tracking down information and filing IRS forms to comply with this regulation.”

The provision repealed today by the House originated in Section 9006 of last year’s health care overhaul.  The provision required businesses to report to the IRS any transactions with vendors that total $600 or more over the course of a year. This amounted to a massive unfunded mandate on American job creators who faced expensive new tax paperwork and record-keeping requirements.

“Small businesses work hard to stay afloat in any economic climate,” Foxx said.  “This intrusive government mandate doesn’t make sense at any time, and especially not during an emerging economic recovery.  By repealing this requirement, Congress is taking away a significant roadblock to productivity and job-creation.”

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.  The NFIB supported the repeal of the 1099 provision and the NFIB’s tax counsel referred to the 1099 mandate as having a “direct negative impact on small business”.