WASHIGNTON, D.C. – Montana’s Congressman, Denny Rehberg, this week introduced an amendment to the House Labor, Health and Human Services and Education Appropriations Bill that would have blocked funding for the enforcement of a particularly ominous new reporting requirement for American small businesses.  The provision – which will require companies to start issuing 1099 tax forms to all vendors  from whom they purchase more than $600 in goods and services – was intended to increase tax revenues to pay for the  health care benefits that don’t even begin until 2012 or later.  Currently, businesses  typically issue 1099 forms only to independent contractors and freelancers receive them each year from their clients.

“Before we even get to the mountains of health care-related paperwork that small businesses are  facing, this tax provision requires Montana small businesses to track every penny they spend over $600 in the course of a year,” said Rehberg, a member of the House Labor, Health and Human Services and Education Appropriation Subcommittee.  “For example, if a company spends $600 on miscellaneous supplies from the local supermarket, they’ll now be required to submit a tax form reporting that expenditure to the IRS.  That’s time that you could be using building your business and creating jobs.”

A recent poll conducted by the U.S. Chamber of Commerce indicated that 68% of small business owners say the government's regulations hurt the economy and job creation.  Rehberg, who has long fought to reduce required government paperwork, has also co-sponsored H.R. 5141, the "Small Business Paperwork Mandate Elimination Act," which repeals the burdensome new 1099 provision in the Health Care Bill.

“Congressman Rehberg’s effort to halt this egregious tax grab perfectly captures the frustration that Montana’s small business owners have been voicing," said Riley Johnson, the Montana State Director for the National Federation of Independent Business. "They know this new health care law, with provisions like this, will bury them in paperwork and force them to spend even more money on tax compliance.  Those new costs mean less investment in their business and fewer jobs – the exact opposite of the kind of policies small businesses need to create jobs and jump start our economy.  We look forward to working with pro-small business members like Congressman Rehberg to repeal the 1099 reporting provision once and for all.”

Rehberg’s Amendment would have prevented any funds from being used to implement this provision.  It failed on a strictly party-line vote.