Tuesday, April 5, 2011

Isakson, Chambliss Vote to Repeal Burdensome Tax Reporting Requirement Included in Terribly Flawed Health Care Law

WASHINGTON – U.S. Senators Johnny Isakson, R-Ga., and Saxby Chambliss, R-Ga., today voted to repeal a section of the health care law that would have imposed an overly burdensome new tax reporting burden on small businesses. The measure to repeal the 1099 reporting requirement, H.R.4, passed by a vote of 87 to 12.

Specifically, Section 9006 of the new health care law requires business owners to submit a separate 1099 reporting form for every single business-to-business transaction that totals more than $600 in a given year. As a result, small business owners would have had to complete and submit 1099 forms for basic businesses expenses, including phone and internet service, shipping costs and office supplies.

"The 1099 provision imposes a tremendous burden on businesses, especially at a time where the government should be creating an environment for businesses to grow and hire employees," said Isakson. "Instead, this mandate hinders growth and creates unnecessary new costs for businesses. I am very pleased that we repealed this piece of the terribly-flawed health care bill today, and I will continue to work to repeal and replace the health care bill in its entirety."

"The 1099 provision that was a component of health care reform advanced by President Obama undoubtedly would place an unnecessary burden on businesses by forcing them to spend valuable resources to fill out paperwork every time they spend more than $600," said Chambliss. "Because this provision will only hinder small businesses and stifle economic recovery, I support this legislation to repeal it."

On February 2, 2011, Isakson and Chambliss voted to repeal the 1099 reporting requirement when it was offered as an amendment to the FAA Reauthorization bill and passed by a vote of 81-17. On March 7, 2011, the House of Representatives passed its own version of legislation to repeal the tax reporting requirement, which is the version that was approved by the Senate today and will now be sent to the President for final approval.

Isakson and Chambliss have tirelessly opposed the health care law because they believe it will raise taxes, raise premiums, cut benefits for seniors and place a massive unfunded mandate on the states. Earlier this year, they praised a ruling by U.S. District Judge Roger Vinson that the health care law is unconstitutional because Congress has no right to require Americans to purchase a product. In November, Isakson and Chambliss joined several of their Republican colleagues in co-signing an amicus brief supporting the court challenge that is focused on the constitutional concerns over the individual mandate included in the health care law.

Isakson and Chambliss are both co-sponsors of S.192, a separate bill to repeal the entire health care law. The U.S. House of Representatives voted to repeal the law in January 2011.