Congress Clears Initiative Cutting Red Tape for Small Businesses, Sends to President Obama's Desk

Press Release

Congress today has cleared a final initiative to cut red tape for small businesses, sending it to President Obama for his signature. U.S. Senator Debbie Stabenow first passed the measure earlier this year. The initiative repeals a burdensome new regulation that would require small business owners to file an IRS 1099 form for each vendor from whom they make purchases of $600 or more. If the new regulation is not repealed, 1099 filings for 40 million American businesses-the lion's share of them small businesses- would increase an estimated 2000 percent.

"Repealing this burdensome requirement is a common-sense solution for business owners who need to be focused on creating jobs rather than filling out paperwork for the IRS," Sen. Stabenow said. "For over a year, I have worked with my colleagues on both sides of the aisle to cut red tape for businesses. I am pleased we were able to bring people in both parties together so President Obama can sign this legislation into law."

Statements from small business leaders across Michigan supporting 1099 repeal are below.

Last month, Senator Stabenow authored and passed the original initiative in the Senate to cut red tape for businesses and has joined Michigan business owners at events across the state who have advocated for the repeal of this provision. The U.S. Chamber of Commerce and the National Association of Manufacturers and other business organizations support the repeal of this requirement.

Statements from Michigan business leaders supporting 1099 below:

(Lansing) George Snyder, Owner, DBI Office Interiors said: "This 1099 requirement would have increased our paper work and overhead at a time when we want to be creating jobs and investing in our company. DBI would like to thank Senator Stabenow for leading the effort to repeal this requirement to help businesses like ours."

(Lansing) Chris Holman, Publisher, Greater Lansing Business Monthly said: "I can't tell you how essential this 1099 issue is to the welfare of small businesses. Small businesses are responsible for the economic growth in the nation and to handicap them with regulations and paper work would be devastating."

(Flint) Tim Herman, CEO of the Genesee Regional Chamber of Commerce said: "I applaud Senator Stabenow for her leadership on the 1099 provision. We appreciate her efforts to help Genesee County small business owners and other employers stay focused on leading and growing their businesses."

(Fenton and Grand Blanc) Jennifer Tremaine, Associate Broker of Tremaine Real Living Real Estate said: "We're glad that Senator Stabenow is looking out for small businesses. As realtors, it's important for us to spend the majority of our time with our clients and showing homes. The last thing we need is more paperwork."

(Burton) Laurie Moncrieff, President of Adaptive Manufacturing Solutions and Schmald Tool & Die said: "I have been actively advocating for small business on the state and federal level for years. I'm pleased with the support and response I have received from Senator Stabenow and other legislators on protecting small business and creating jobs. Senator Stabenow has been a long-time fighter for business and the 1099 initiative is just one example of her efforts."

(Detroit) Bill Ross, President, Booker T Washington Business Association said: "Senator Stabenow has been a true champion for Detroit small business owners. We greatly appreciate her leadership to repeal this burdensome requirement."

(Detroit) Roderick Rickman, Chairman and CEO, Rickman Enterprises said: "As a business owner, the last thing I need is to fill out extra paper work for the IRS instead of focus on my business and hire new workers. I want to thank Senator Stabenow for leading the effort to help Detroit small businesses."

(Detroit) Ken Harris, President, Michigan Black Chamber of Commerce said: "Senator Stabenow is a true advocate for African-American businesses. Our members are grateful for her work to repeal this 1099 paperwork requirement which would place an unnecessary burden on businesses and be detrimental to job creation."

(Dearborn) Jumana Judeh, President and CEO, Judeh and Associates said: "The disaster that is far approaching small businesses that are barely surviving is spelled 1-0-9-9. I am the owner of a small business in real estate and regularly receive and issue 1099s; however, I, like thousands of other small business owners am barely breaking even. Adding this unreasonable and over burdensome regulation on the backs of already struggling small business owners will push those on the edge over into bankruptcy."

(Ann Arbor) Heidi Jacobus, President and CEO, Cybernet Systems said: "Imagine wading through all the year's worth of receipts from each credit card company, every check stub, and so on, to calculate which are more than $600? Then we'd have to prepare, stuff envelopes, stamp and mail a summary statement to each at year's end. We might easily have a thousand 1099's to prepare. Senator Stabenow is fighting to keep us from having to add a significant amount of money and time to our current costs of doing business."

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