Alexander Cosponsors Bill to Protect 40 Million Small Businesses from “Yet Another Job-Killing Washington Mandate”
Says “It’s Never a Good Time to Make the Tax Code More Complex,” Especially with 10% Unemployment
Posted on August 3, 2010
WASHINGTON – U.S. Senator Lamar Alexander (R-Tenn.) announced today that he is a cosponsor of legislation that would repeal a section of the new health care law that requires all businesses, large and small, to submit 1099 tax forms for every business transaction greater than $600 in a given year, including routine expenses like the purchase of office supplies. This provision, if allowed to go into effect in 2012, would affect more than 40 million American businesses, including 26 million sole proprietorships, according to the National Taxpayer Advocate Service, an Internal Revenue Service (IRS) ombudsman.
“As if the health care law wasn’t flawed enough, hidden inside it was a provision calling for yet another job-killing and costly Washington mandate for American businesses to comply with. With 10 percent unemployment, we want small businesses to grow and hire – not spend valuable time and resources filling out a separate tax form for every phone bill, every rent check, every utility payment over $600. It’s never a good time to make the tax code more complex for American businesses, but it makes even less sense during a recession.”
The legislation – S. 3578, “The Small Business Paperwork Mandate Elimination Act” – was introduced by Senator Mike Johanns (R-Neb.) and has 19 cosponsors.
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