Contact: Bill G. Smith, 608-255-6083
Madison (April 5, 2011)– The National Federation of Independent Business (NFIB) today applauded passage in the US Senate of a bill to repeal one of the most burdensome elements of the federal health care law, known as the Patient Protection and Affordable Care Act.
“The tax reporting provision of the health care law is enormously expensive and time consuming, and we are very happy that it was repealed today with bi-partisan support,” said NFIB state Director Bill G. Smith.
The controversial provision requires all businesses to file an IRS 1099 tax form for every business-to-business transaction of more than $600. Entirely unrelated to health care, the measure was included merely as a way to siphon money out of the private sector in order to finance the mammoth program.
“This mandate had nothing to do with improving health care or making it more accessible,” said Smith. “It functions as a tax increase on small businesses and it strangles them with red tape.”
Smith noted that small businesses spend an average of $74 dollars per hour on tax preparation. With hundreds of transactions every year exceeding the $600 threshold, most small businesses would have to spend hundreds, if not thousands, of dollars every year in order to be compliant.
“Every time they purchase a service, materials, equipment or supplies, they would have to pay a professional to file another tax form,” said Smith. “It is a senseless mandate that even the IRS had doubts about enforcing and I’m glad that Congress repealed it before it caused too much damage.”
The legislation now goes to the White House for President Obama’s signature.
For more information about the National Federation of Independent Business, please visit http://www.nfib.com/wisconsin.
