WASHINGTON, DC – Congressman Bobby Bright recently co-sponsored the Small Business Paperwork Mandate Elimination Act, a bill designed to remove burdensome paperwork requirements for small businesses. Under Section 9006 of the new health care law (H.R. 3590), business owners must submit a separate 1099 IRS form for each business-to-business transaction totaling over $600 in a given year. Previously, businesses needed to report only services performed by non-corporate entities, usually independent contractors. H.R. 5141 would remove these reporting requirements, lifting an unnecessary burden on small businesses.
"There are many flaws to the health care law, but some of the worst are the additional burdens on small businesses," Bright said. "This legislation would remove unnecessary paperwork requirements for businesses, preventing new financial obligations from taking effect during economic hard times. This is a good step to reform some of the problems of the new health care law. I urge my colleagues to work together to support this legislation and other provisions that will make necessary changes to the health care law to make it less burdensome on small businesses and the economy."
The reporting requirement is particularly hurtful for small businesses, Bright said. Not only are they faced with an onerous tax reporting burden, it could also change with whom they decide to do business. It will be much more difficult for small businesses to purchase goods and services from smaller companies if they have to fill out an additional 1099 form for each individual vendor. Many would choose to rely on a single large supplier rather than to negotiate with a number of small companies. Additionally, smaller companies often do not have a staff large enough to handle additional paperwork requirements.
"Congressman Bright has taken yet another bold step to help Alabama's small businesses by signing on in support of a bill seeking to repeal the enormous new tax reporting provision – the 1099 provision – contained in the healthcare law," said Rosemary Elebash, NFIB/AL state director. "Bright has taken the time to meet with NFIB small business owners to hear first-hand how this burdensome provision would bury them in paperwork. There is a lot of talk in Washington about helping small business, and most of the time it is just that – talk. But, Congressman Bright is one of those leaders who does more than talk – he is truly working to deliver results for Alabama's small businesses."
Congressman Bright voted against the Patient Protection and Affordable Care Act in March.