Congressman Adrian Smith (R-NE) voted today in the Committee on Ways and Means to advance the repeal of the 1099 mandate. This provision was included in President Obama's health care reform law.
"I am pleased we are taking action to move the repeal of this burdensome mandate forward. Of all the concerns with ObamaCare, nothing hits Nebraska's small businesses, family farms, and ranchers so immediately as this misguided provision," Smith said after the Committee's mark-up. "The 1099-nightmare punishes farmers, ranchers, and small business owners with higher administrative costs and more paper work which could lead to an increased risk of fraud and potentially more penalties from the IRS. Now, Congress must continue moving forward to eliminate this provision before it produces even more economic havoc, particularly for Nebraskans."
Smith is a cosponsor of H.R. 4, the Small Business Paperwork Mandate Elimination Act of 2011, which is the leading 1099 repeal bill in the House with bipartisan support. Today, it passed out of the Committee on Ways and Means and will now proceed to a vote of the full House of Representatives at a later date.
The 1099 mandate requires farmers, ranches, and small businesses to file a form with the Internal Revenue Service for every vendor or contractor from which they purchase $600 or more of goods and services in a calendar year.
Smith sits on the Committee on Ways and Means which enables him to serve Nebraskans through engagement on critical issues including trade agreements, tax reform, Medicare, and Social Security.