The American Veterinary Medical Association’s Congressional Advocacy Network (AVMA CAN) sent out a media alert today urging its members to ask their senators to support the Johanns Amendment (SA 4596) to the Small Business Jobs and Credit Act of 2010 (HR 5297).
The amendment, sponsored by Senator Mike Johanns (R-NE), would repeal a new 1099 tax paperwork mandate embedded in the health care law. Specifically, the amendment’s purpose is “to repeal the expansion of information reporting requirements for payments of $600 or more to corporations, and for other purposes.”
“The current mandate will add undue burden to small businesses such as veterinary clinics,” AVMA CAN said in its alert. “Tax paperwork and compliance are already major expenses for small businesses and the new reporting requirements will only increase these costs. As Congress calls on small businesses to lead the nation out of the recession, now is not the time for government-imposed costs on doing business.”
Senator Bill Nelson (D-FL) is sponsoring an alternative amendment (SA 4595), which would modify, not eliminate, the 1099 paperwork mandate in the health care law. The amendment seeks “to exempt certain amounts subject to other information reporting from the information reporting provisions” in the health care law, and for other purposes.
For instance, Nelson’s amendment would change the reporting requirements for payments from $600 to $5,000. Any businesses with not more than 25 employees would be exempt.
However, this alternative “picks winners and losers instead of fixing the 1099 problem and will actually discourage hiring,” Senator Johanns said in a press statement. “If you are a business owner with 25 employees, why would you hire more if your reward is a mountain of new tax paperwork? This approach simply defies logic at a time when our country continues to struggle with high unemployment.”
AVMA CAN maintains that only a full repeal of the new 1099 requirement will relieve small businesses of the cost and confusion.
The Senate is scheduled to vote on both amendments on Sept. 14.
SA 4596 and SA 4595 had not been posted by the Library of Congress as of press time. When they are posted, they can be found by clicking this website, or this one. AVMA CAN has also posted info on its website.