Intent to Fix 1099 Provision Good News for Small Businesses
Statement by John Arensmeyer, CEO, Small Business Majority Nov. 12, 2010 The announcement today by Senator Max Baucus of his intention to introduce legislation that will correct the 1099 reporting requirement in the Patient Protection and Affordable Care Act is great news for small businesses, which would be unduly burdened if this provision were to go into effect in 2012.
The Affordable Care Act has tremendous benefits for small businesses, particularly the tax credits and health insurance exchanges. However, the 1099 provision, which would require small businesses to file a 1099 form for the purchase of goods and services over $600, would put an onerous burden on them-forcing them to spend an inordinate amount of time filling out paperwork instead of doing business.
The small business community has resoundingly rebuked this provision-which was included in the law only for the purpose of raising revenue and not as a healthcare feature. Senator Baucus should be commended for listening to small businesses and vowing to fully fix this problem. We hope his fellow members of Congress follow suit. Then we can get back to focusing on the law's real benefits, not one of its few shortcomings.
Small Business Majority is a national nonprofit organization focused on solving the biggest problems facing America's 28 million small businesses. We conduct extensive opinion and economic research and work with small business owners, policy experts and elected officials nationwide to bring nonpartisan small business voices to the public policy table.