Rahall Votes for Small Business Regulatory Relief

WASHINGTON, D.C. – U.S. Rep. Nick Rahall (D-W.Va.) today helped to pass the Small Business Paperwork Mandate Elimination Act, a measure he cosponsored to provide regulatory relief to small businesses and manufacturers.

“I believe the 1099 reporting requirement would be overly burdensome and ought to be repealed,” said Rahall.  “It’s the right thing to do and it will assist small businesses and manufacturers across southern West Virginia.”

The bill would repeal a provision of the Patient Protection and Affordable Care Act, which requires certain businesses for tax purposes to report payments to vendors in excess of $600 on a 1099 IRS form.  West Virginia business owners have raised concerns about potential financial and administrative burdens, including record keeping requirements and cost.  The National Taxpayer Advocate, an independent office within the IRS, examined the administrative challenges presented by the reporting requirements, and expressed concern "that the new reporting burden, particularly as it falls on small businesses, may turn out to be disproportionate as compared with any resulting improvement in tax compliance."

Rahall has said previously that the Congress has a responsibility to respond to concerns about the recently enacted health reform law, and that he would pursue changes to improve the law.  He cosponsored the bill to repeal the 1099 reporting requirement to fulfill that commitment.

“A healthier workforce, supported by healthier families, builds stronger businesses and a stronger nation.  I will work with all sides in shaping a health care system that is accessible and responsive to the needs of the people of southern West Virginia,” said Rahall.

The U.S. Chamber of Commerce and the National Association of Manufacturers strongly support the measure.

The House passed the bill by a vote of 314 to 112.  It must now be reconciled with a similar measure that passed the Senate in February.