Hoeven Cosponsors Elimination of 1099 Provision in Health Care Act
WASHINGTON, D.C. – Sen. John Hoeven today announced he is cosponsoring a bill advanced by Nebraska Sen. Mike Johanns to eliminate a burdensome reporting requirement for small businesses embedded last year in the new health care legislation.
Section 9006 of the Patient Protection and Affordable Care Act mandates that every business, charity, and local and state government entity submit 1099 forms for business transactions totaling $600 or more in a given year. This mandate adds routine business expenses like phone, office products, and shipping costs, and increases businesses’ reporting requirements by as much as 2,000 percent.
Under the new health care law, the 1099 form would also be used to track expenditures for services and goods. For the first time, it will require that 1099s be issued not just to individuals but also to corporations businesses.
“America’s 17 million small businesses are the engine that drives our economy,” Hoeven said. “They’ve created 64 percent of all the new jobs in this country over the past 15 years, and account for more than 97 percent of all employers. If we expect small businesses to create jobs and get our economy moving again, we need to reduce their regulatory burden rather than bury them under a new mandate, and make sure they have a tax and regulatory climate that promotes hiring.”
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