Today, Congressman Jim Renacci (OH-16) voted in support of a bill that will help business owners by repealing a burdensome government mandate set to take effect in 2012.
H.R. 4, the Small Business Paperwork Mandate Elimination Act, will repeal parts of section 9006 of the ObamaCare legislation. Section 9006 would have expanded tax information reporting requirements and mandated anyone with a trade or business to file a 1099 form for vendors with whom they do $600 or more in business in a given year.
The Small Business Paperwork Mandate Elimination Act passed the House today by a vote of 314 -- 112. In addition to striking section 9006, this bill will also repeal expanded information reporting requirements on rental property expense payments that are currently in effect, and increase the maximum amount of subsidy overpayments that could be recaptured by the government under ObamaCare. Repealing these mandates will help relieve companies of the cost of implementation in 2012. The bill will also reduce the nation's deficit by $166 million over 10 years and cut taxes by more than $24 billion by FY 2021.
Renacci, an original cosponsor of H.R. 4, believes that its passage is a first step in removing an added layer of government bureaucracy that would have burdened businesses with administrative costs and forced business owners to expend resources to comply with the law.
"These new reporting requirements have been condemned from all sides. Businesses have stated they will be crushed by them. Accountants are against them as the burden will far outweigh any benefit. The IRS has even said it is wary of these regulations because the burden on small businesses may be "disproportionate as compared with any resulting improvement in tax compliance,'" Renacci said. "As a former small business owner myself, I recognize that if these added regulations were not repealed, business owners would have had fewer resources available for growth and job creation. In this uncertain economy, if we have any hope of getting Americans back to work, Washington must get out of the way and let employers do what they do best, and what America needs most--create jobs."