Congressman Bobby Bright expressed disappointment in the Senate's recent failure to repeal burdensome small business 1099 reporting requirements from the new health care law. Two separate amendments that would have removed or modified this provision- which forces businesses to file a 1099 for every business-to-business transaction over $600- failed to gain enough votes for final consideration in the Senate. Before the August District Work Period, Congressman Bright voted for legislation that would have completely repealed the 1099 requirement.
"I am extremely disappointed in the Senate's inability to work together to repeal one of the most burdensome provisions of the new health care law," Bright said. "Nearly everyone agrees that this requirement needs to changed- the Administration, Republicans, Democrats, and small businesses- yet partisan politics on both sides of the aisle is preventing this provision from being repealed.
"I urge the Senate to work together to find a compromise on these amendments," Bright continued. "Our small businesses simply cannot afford another regulatory burden, especially during these tough economic times."
The 1099 reporting requirement, which is scheduled to go into effect in 2012, is particularly hurtful for small businesses. Not only are they faced with an onerous tax reporting burden, it could also change with whom they decide to do business. It will be much more difficult for small businesses to purchase goods and services from smaller companies if they have to fill out an additional 1099 form for each individual vendor. Many would choose to rely on a single large supplier than to negotiate with a number of small companies. Additionally, smaller companies often do not have a staff large enough to handle additional paperwork requirements.
Congressman Bright voted against the Patient Protection and Affordable Care Act in March.