Congressman Goodlatte released the following statement after his vote for H.R. 4, the Small Business Paperwork Mandate Elimination Act.
"More than 90 percent of all American employers are small businesses and they generate approximately 70 percent of the new jobs created in the United States each year. Small businesses are crucial to the American economy and account for a significant majority of new product ideas and innovation. Small business owners across the country want to invest in their firms and hire new workers, but instead they are bracing for costly new tax increases."
Included in the new health care reform law is an onerous tax reporting provision, which will be an enormous burden to our nation's small businesses. This provision, which was scheduled to go into effect in 2012, expands the tax information reporting rules by requiring businesses to issue a Form 1099 for any payments to corporations and for any payments for property that exceed $600 per year per payee. This new requirement will impose a huge tax compliance burden on small businesses, forcing them to devote resources to tax filing instead of to business expansion and job creation.
Today, with my support, the House of Representatives passed H.R. 4, the Small Business Paperwork Mandate Elimination Act of 2011. This bipartisan legislation will protect small businesses, their employees and every American taxpayer by repealing this job-destroying provision while reducing the deficit by $166 million in the first ten years alone.
Congress must focus on policies that allow individuals and businesses to keep more of their hard-earned tax dollars, which would encourage investment and job creation at America's small businesses. Most importantly Congress must send a clear message to our nation's job creators that they can hire new workers with the confidence that a higher tax bill is not on the way and the House passage of H.R. 4 is a step in that direction.