Thursday, January 27, 2011

Gibson wants repeal of 1099, won’t support Owens’ bill

North Country Congressman Chris Gibson says he wants to repeal the 1099 reporting requirement included in last year’s Affordable Care Act.

But the Kinderhook Republican won’t support a repeal measure introduced this week by his Democratic colleague, Bill Owens.

The reporting requirement, which doesn’t take effect until 2012, forces businesses to submit IRS Form 1099s for every business-to-business transaction of $600 or more.

Owens, who represents New York’s 23rd Congressional District, says the measure small businesses are already overburdened with tax paperwork and reporting requirements.

His repeal bill would be pay for through a 5.4 percent surcharge on adjusted gross income that exceeds $1 million annually for joint tax filers, or $800,000 annually for individuals.

According to Gibson spokeswoman Stephanie Valle, that essentially amounts to a tax on wealthy Americans.

“Unfortunately, this tax will impact small businesses who file as individuals on their taxes – so basically, turning around and hurting the very people you’re trying to help by repealing the 1099 reporting requirement,” she told WNBZ.

Valle says Gibson supports repealing the 1099 provision, but not through additional taxes and fees.

He’s currently cosponsoring similar legislation to repeal the measure.

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