With a November 29 vote scheduled on Sen. Mike Johanns’ legislation to repeal a 1099 tax paperwork mandate, Johanns today outlined how his repeal would aid job creators and avoid adding one penny to the deficit. Opposition to Johanns’ repeal effort was raised in September due to the proposed offsets utilizing funds from the massive new health care law.
“My latest effort to repeal this costly mandate should easily win the support of my colleagues,” said Johanns. “I said I would find different offsets and now propose using unspent federal funds. Billions of taxpayer dollars sit in unspent accounts and a very small percentage of those funds would give small businesses a much-needed break from the impending tax paperwork tsunami. Many of my colleagues have spoken on the Senate floor about the importance of addressing our alarming deficit and I urge them to support my deficit-neutral approach to the 1099 repeal.”
Johanns’ amendment directs the Office of Management and Budget (OMB) to identify $39 billion in unspent and unobligated accounts to replace the revenue that might have been generated by the 1099 paperwork mandate. This represents only about five percent of the total funds in unspent and unobligated accounts and gives the Administration discretion to ensure these funds do not affect ongoing and necessary programs.
Sen. Max Baucus (D-MT) has proposed a 1099 repeal that is virtually identical to Johanns’ but lacks an offset to maintain budget neutrality, instead adding $19 billion to our nation’s deficit and driving up the overall cost of the health care bill.
Click HERE for additional information and background on Johanns’ 1099 repeal effort.