Providing for Consideration of H.R. 4, Small Business Paperwork Mandate Elimination Act of 2011

Floor Speech

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Mr. NUGENT. I thank the gentleman for yielding.

Mr. Speaker, I rise today in support of H. Res. 129 and the underlying legislation, H.R. 4.

Last year's health care law was rammed through without the opportunity for the American public to let their voices be heard. At the time, then-Speaker Pelosi said Congress had to pass the bill to know what is in it. Now we know. Even Democrats are realizing how many problems there are in this bill.

One such example is the 1099 reporting requirement. This requirement forces businesses to report nearly all expenses exceeding $600 to the IRS. This results in a new, onerous burden on small businesses. The requirement means 10 to 20 times more paperwork for small businesses. The U.S. Small Business Administration estimates the 1099 tax compliance will cost small businesses $800 per employee annually.

Small businesses are the economic backbone, and the 1099 requirement is breaking their back. My colleagues on the other side of the aisle will tell you H.R. 4 is a Republican tax increase on middle America. That couldn't be further from the truth.

The offset we are using here today prevents individuals from receiving health care subsidies that they aren't entitled to. We are preventing people from defrauding the Federal Government. We aren't taking money away from people; we are protecting taxpayer dollars by ensuring they're being used the way they're meant to be used.

Moreover, the subsidies we're talking about today don't even take place until 2014, which gives taxpayers ample time to know the facts. The 1099 requirement is affecting small businesses today. Anybody who calls this rule an attack on the middle class isn't telling you the truth, Mr. Speaker.

We are here today because the Republican majority is committed to jobs and protecting and creating jobs for the American people.

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Mr. NUGENT. The Democrat-passed 1099 reporting requirement is a job killer. We want to make sure that small businesses can use their hard-earned profits to expand their businesses, open new storefronts, and bring on new employees, not spend their time reporting to the IRS.

If we're going to create jobs, we need to create an environment where small businesses can succeed. H.R. 4 is an important step in fostering that environment. With that, Mr. Speaker, I encourage my colleagues to support this rule and support H.R. 4.

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