Peters Applauds Senate Passage of 1099 Repeal; Urges President to Sign Bill into Law

Press Release

On Tuesday afternoon, the Senate followed the lead set by the House last month and voted to repeal a controversial small business tax provision that had been included in the health care reform bill.

Representative Gary Peters, who sits on the House Small Business Committee, voted to repeal the "1099 reporting" provision of the bill earlier this year. Peters applauded the Senate vote and called on President Obama to move quickly to sign the repeal into law.

"Small businesses are the backbone of our economy, and eliminating this paperwork burden will help achieve one of the key goals of health care reform: reducing health care costs for small businesses and helping them become more competitive," said Rep. Gary Peters. "Now that the Senate has joined the House in passing this bill, I urge the President to sign it into law immediately to help our small businesses focus on what they do best -- creating jobs."

The health care reform legislation passed into law last year included a provision that would have required businesses to file a Form 1099 tax report any time they purchased more than $600 worth of goods or services from any vendor within a year. Complying with the requirement would have created a huge paperwork burden for small businesses, increasing their costs and making it harder for them to conduct even basic operations.

Representative Gary Peters has been an outspoken advocate for reducing taxes on small businesses, voting to eliminate the capital gains tax for investments in small businesses and to extend tax credits for hiring new employees.

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