Congressman Garamendi on GOP 1099 Bill
WASHINGTON, DC – Congressman John Garamendi (D-Walnut Creek, CA), a small business owner who supports repealing the 1099 reporting requirement for small businesses, today released the following statement after voting against a Republican-designed 1099 bill that would have cost middle class Americans billions of dollars. Congressman Garamendi issued the following statement:
"I support repealing the new 1099 reporting requirements. They are an onerous and unnecessary burden on small businesses. My Republican colleagues could have crafted a workable bipartisan bill with almost unanimous support.
"Instead, House Republicans forced Congress to make a poisonous choice today: vote No and maintain the paperwork burden on small businesses or vote Yes and increase taxes on small businesses and working men and women. I voted No and urged my Republican colleagues to rewrite the bill.
"Last July, I joined my Democratic colleagues in supporting a repeal of the 1099 provision. Our proposal would have offset the costs by eliminating billions of dollars in tax incentives that reward companies for shipping jobs overseas, restricting the ability of wealthy families to avoid paying gift taxes, closing loopholes that allow paper mills to claim a tax credit for a byproduct known as “crude tall oil”, and increasing penalties for failing to file tax returns. I thought this was a reasonable and balanced approach favorable to America’s small businesses AND middle class families.
"Unfortunately, House Republicans have decided to pit small business owners against middle class families. The Republican 1099 bill states that once a family of four’s income goes between 400 and 500 percent of the poverty level, between $88,000 to $110,000, they would have to pay the IRS the entire value of their health premium tax credits. The average payment would go up by $3,000 to $6,000 on a family of four, leading to a projected increase of 226,000 uninsured Americans.
"I will not support legislation that punishes middle class families and small businesses. I voted against a bill that would result in middle class families paying higher taxes simply because they are receiving insurance. We still have time to do this right. The 1099 provision does not come into effect until 2012. I urge my Republican colleagues to work with Democrats to find a bipartisan solution that helps small businesses, middle class families, and the American economy."