Senate Returns to Consider 1099 Repeal Bill

PPA remains hopeful that the U.S. Senate will complete the passage of their version of H.R. 5297 - The Small Business Jobs Act of 2010. Prior to the August recess, PPA sent letters to the Senate Small Business and Entrepreneurship Committee leadership, supporting the substitution they introduced in the Senate. 

“We were pleased to see the passage of the bill substitute prior to the recess,” adds David Trust, CEO of PPA.  “It is especially important to take note that the Senate’s substitute included Section 2042, a provision allowing self-employed business owners to deduct their health care expenses pre-tax for one year, as proposed by Sens. Mary Landrieu (D-LA) and Olympia Snowe (R-ME).”

Before the bill can be sent back to the U.S. House of Representatives for a conforming vote, though, there are still amendments on the table. These are as follows:

Senate Amendment 4596: Repeal of 1099 Reporting Requirement

The Patient Protection and Affordable Care Act—signed into law in March 2010—included a provision that expanded the 1099 reporting requirement in a way that would prove costly to small businesses (due to the administrative burden it would create). The provision as written requires businesses to provide 1099 forms for all business transactions exceeding $600, such as purchasing equipment or paying for lab services.

S.Amdt. 4596, introduced by Sen. Mike Johanns (R-NE), is one of two repeal amendments proposed. We believe that this version of the repeal is the most effective, for it fully repeals the 1099 reporting provision as it was passed into law. The second amendment (S.Amdt. 4595), introduced by Sen. Bill Nelson (D-FL), simply creates exemptions to and imposes new standards on the existing law.

To show our support of Johanns’ amendment, PPA joined with the Small Business Coalition Health Care members and sent a letter on September 9, 2010, to the senator and his colleagues, urging its passage.

Senate Amendment 4330: Standard Home Office Deduction
Sen. Barbara Boxer (D-CA) has proposed giving home-based businesses the option of selecting a standard home office deduction instead of using the existing tax criteria when calculating the home office deduction. There have been no changes to this amendment since we brought it your attention prior to the August recess. 

We hope that Boxer will have the opportunity to bring this amendment to the floor during this week’s debate and that it will be included the version of the bill sent back to the House.

Take Action Now!
Debate on these amendments and other provisions to the Senate’s version of H.R. 5297 resume this week when Congress returns from the August recess. To encourage your senator to support the passage of Senator Johanns’ 1099 repeal amendment (S.Amdt. 4596) and Senator Boxer’s amendment (S.Admt. 4330) to the bill, please visit the Contact Congress page.

In addition to representing members on copyright issues, PPA is a strong advocate on small business issues, primarily relating to health care. Through the Small Business Coalition for Affordable Healthcare, PPA advocates health care solutions that meet the needs of small business owners, employees, the self-employed and their families. In previous congressional sessions, PPA has supported various health reform bills, in particular those that would provide trade associations the ability to create insurance pools on behalf of its members.

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