E-Newsletter

Creating jobs, not obstacles

Congress must focus on policies that create jobs, not obstacles. Small businesses are the very backbone of our economy. Over the past several years in Washington, many federal policies have done more to hurt job creation than help. With unemployment at 9 percent or higher for the last 22 months, we cannot afford more job destroying federal mandates. This week the House took an important step towards getting the government off the backs of businesses and taxpayers by repealing the 1099 mandate, one of the most burdensome provisions for small businesses under ObamaCare.

The House passed H.R. 4, the Small Business Paperwork Mandate Elimination Act of 2011, by a bipartisan vote of 314 to 112. The 1099 mandate requires that all businesses file an individual IRS Form-1099 to both the IRS and any recipient of payments for goods or service in excess of $600. Basically, if you own a lawn service and purchase more than $600 of grass seed or fertilizer from any vendor throughout the year, you would be required by law to send each vendor a 1099. If you own a farm and purchase more than $600 in hay from a number of suppliers, you must send a 1099 to each supplier. The end goal of this mandate was to track more money owed in taxes. However, in reality, the burdens of this tedious provision outweigh any benefits.

Across the nation, over 40 million businesses would be subject to this mandate. The 1099 mandate creates an unreasonable burden on American small businesses by burying them in a landslide of paperwork and creating additional costs. From dental offices to accounting firms, many small businesses in the 9th District don’t have the resources needed to meet this burdensome IRS mandate. Added paperwork would consume valuable time business owners could spend working or growing their company. Costs to comply with this misguided mandate would increase the price of goods and services.

If the Senate doesn’t pass this repeal or the President doesn’t sign the bill, the 1099 mandate will take effect on January 1, 2012. What will the impact be on your business or community?

Repealing the 1099 mandate is just one of the many obstacles that must be repealed in order to restore confidence in the business community, encourage job creation, and foster economic growth. If the Senate won’t take up the full repeal of the costly ObamaCare, I am prepared to dismantle the law piece by piece starting with the 1099 provision.

If you wish to contact my office regarding issues before Congress, I invite you to visit my website at www.morgangriffith.house.gov . You may also call my Abingdon office at 276-525-1405 or my Christiansburg office at 540-381-5671.