OLSON APPLAUDS REPEAL OF OBAMACARE TAX REGULATION
WASHINGTON, DCâ€“ Rep. Pete Olson (R-Sugar Land) voted today to free businesses from another IRS punitive government regulation. By a vote of 314 -112, the House today passed a bill to abolish a burdensome ObamaCare provision. H.R. 4, the Small Business Paperwork Mandate Elimination Act, repeals a mandate for businesses (including small businesses and individuals) to file an IRS Form 1099 for any single purchase that exceeds $600 per year per payee.
"Businesses small and large already spend millions per year complying with unnecessary, burdensome regulations," Olson said. "This tax requirement is a costly, job destroying federal mandate designed to pay for government controlled health care," Olson said. "Todayâ€™s repeal of the 1099 regulation is another step towards reining in an overreaching bureaucracy and restoring common sense to the federal government."
"A Sugar Land resident recently told me that he had been advised that he might have to file a 1099 form for purchasing baseball equipment for his son's little league. Thatâ€™s just not right and I'm thrilled we in the House voted to repeal this dumb, excessive mandate," Olson concluded.
Provisions of H.R. 4:
- Repeals a provision that requires businesses (including small businesses), beginning in 2012, to file an IRS Form 1099 for any payments to corporations that exceed $600 per year per payee.
- Repeals a further expansion of the IRS Form 1099 reporting requirements, beginning in 2011, as it relates to real estate rental income. Specifically, this requires any person who receives rental income, rather than only those in the business of managing property, to file a Form 1099 for any rental property expense payments.
- Increases the maximum amount of health care insurance subsidy overpayments that must be repaid on a sliding scale, with those earning more than 400% of Federal Poverty Level (FPL) paying back all improper payments. The premium subsidies (refundable tax credits) are determined based on the most recent tax return, thus an overpayment could occur when actual incomes exceed subsidy eligibility thresholds.