Representative Barletta Supports the Repeal of Job-Crushing 1099 Tax Provision
WASHINGTON– Representative Lou Barletta released the following statement regarding his vote to repeal the job-crushing 1099 tax provision.
“We cannot continue to allow small businesses to suffocate under a mountain of unnecessary paperwork,” Barletta said. “As a former small business owner, I know first-hand the burdens of onerous regulatory demands and tax filing regulations. At a time when small businesses are struggling to keep afloat, this financial roadblock is both wasteful and unnecessary.
“As if these tax filings weren’t crippling enough for small business owners, 1099 form requirements have now been expanded to rental properties. Whether it’s a couple’s first apartment in East Stroudsburg or a college student’s off-campus housing in Bloomsburg, this needless tax provision will further depress an already struggling housing market and leave renters susceptible to higher fees.
“Just as I was proud to serve as a co-sponsor for the repeal of the 1099 revision in the health care bill, I applaud these continued efforts to support our small businesses and communities.”
The new health care law expanded tax information reporting requirements to require businesses to issue a Form 1099 for any payments to corporations and for any payments for property (rather than just for services or investment income) exceeding just $600 per year per payee.
In addition, the newer 1099 provision forces recipients of rental income to file 1099 requirements on the owners’ rental property expense payments.