Most small business owners take a chance and step out on their own because they are passionate about a new idea or see an opening for a service or product that currently isn't available. That is why my family started a hunting lodge on our farm operation in Northeastern South Dakota. No small business owner I have ever met told me they started their business because they have a passion for paperwork.
Yet somehow, in the midst of the health care law Congress debated and enacted last year, small businesses were hit with a huge tax compliance burden that did nothing but force them to devote time and resources to tax filing instead of to business expansion and job creation.
This provision, which is scheduled to go into effect next year, would specifically require small businesses to file IRS paperwork (a 1099 form) for every business-to-business transaction over $600. For many South Dakota businesses this would mean a mountain of new paperwork.
Last week, the U.S. House of Representatives passed a bipartisan bill to repeal this onerous provision of the health care law. I supported repealing this provision because it is a win for small businesses which need certainty to create new jobs, not more regulation and paperwork.
This is an important step in repealing and replacing the job-destroying health care law. Former Speaker Nancy Pelosi infamously said during the health care debate, "[W]e have to pass the bill so you can find out what's in it."
The bill ultimately passed, and now we're finding out what is in it. What we are finding isn't good for South Dakota small businesses or our health care system. I'm committed to working towards repealing or defunding the most egregious elements of the bill and instead focusing our efforts in Congress on providing our small businesses with regulatory and tax certainty so they can focus on growing. I am also committed to health care reforms that keep government bureaucrats out of the doctor-patient relationship and instead focus on market-based reforms that lower costs and improve quality.