The Obama-Pelosi health spending bill supported by incumbent Congressman Ellsworth included a requirement that businesses submit an IRS 1099 form for every business-to-business transaction over $600. This provision does nothing to improve health care for Americans and only amounts to further burdensome regulations on America’s small businesses and is another example of “What Happens in Washington, Stays in Washington.”
Congressman Ellsworth is now campaigning in Indiana saying he wants to reduce the red tape burden on small business.
According to the National Federation of Independent Business:
The  reporting requirement substantially increases compliance burdens on honest small businesses
- Expanded 1099 reporting means that a small business owner will have to file two forms—one with the vendor and one to the IRS—for almost every business-to-business transaction.
- In addition, since Form 1099 reporting requires the inclusion of a Taxpayer Identification Number for the vendor they do business with, small business owners will also be forced to spend time tracking down the number for each and every vendor requiring a Form 1099.
- Small businesses lack an in-house finance department to track this kind of reporting and that is why complying with the tax code is already 66% more expensive for a small business than a large business. (SBA Advocacy Report: The Impact of Regulatory Costs on Small Firms)
Even the National Taxpayer Advocate Service – an independent organization inside the IRS – expressed concern “that a new reporting requirement contained in the Patient Protection and Affordable Care Act may impose significant compliance burdens on businesses, charities, and government agencies.”
“According to a TAS analysis of 2009 IRS data, about 40 million businesses and other entities will be subject to the new requirement, including roughly 26 million non-farm sole proprietorships, four million S corporations, two million C corporations, three million partnerships, two million farming businesses, one million charities and other tax-exempt organizations, and more than 100,000 government entities.”
Congressman Ellsworth wants his deeds to do the talking…well his votes have done plenty to hurt small business looking for certainty in an already fragile marketplace.
Visiting POET Biorefining in Alexandria yesterday, Dan Coats unveiled the Energy Solutions for Hoosiers piece of his Plan for Economic Growth & Job Creation. From the Herald Bulletin:
During his visit, Coats stressed that he will be committed to lessening the country’s dependence on foreign oil looking to things like the ethanol produced at Poet.
Coats said the U.S. needs to increase domestic supply and create predictable vehicle efficiency standards for automakers; work toward allowing ethanol to compete in a fair and open market; encourage production of base load electricity including clean coal, hydropower, natural gas, nuclear, geo-thermal and renewable and alternative fuels such as clean coal-to-liquid technology and wind power; and double the amount of nuclear reactors over the next 20 years.
The former GOP senator said technology like that demonstrated at Poet will not only provide for a better, cleaner energy, it will also help create jobs locally and nationally.
Poet General Manager Dave Hudak said, “It encouraged me that Mr. Coats sees the vital role ethanol is playing and continues to play in the energy future of America. We are very honored he chose to come here and talk about his energy plans.”
[Disclosure: Pete Seat is the press secretary for the Coats for Senate campaign.]