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August 6, 2010

Johanns: 1099 Alternative Punishes Job Creators, Hitting Thousands Of Small Businesses


Sen. Mike Johanns (R-Neb.) made the following comments today regarding the recently released alternative to his Small Business Paperwork Elimination Act. Votes on both amendments are scheduled for shortly after the Senate returns from recess.

“This alternative 1099 amendment picks winners and losers instead of fixing the 1099 problem and will actually discourage hiring,” Johanns said. “If you are a business owner with 25 employees, why would you hire more if your reward is a mountain of new tax paperwork? This approach simply defies logic at a time when our country continues to struggle with high unemployment. There is broad acknowledgment that this section of the health care law is a problem, but setting arbitrary exemptions for some but not others is unfair. My amendment is simple and honest: full repeal, not some half-measure. The alternative is complicated, unfair and impossible to administer. It hurts small businesses, costing them money on useless paperwork and discourages hiring.”

Click here to learn more about Sen. Johanns’ Small Business Paperwork Elimination Act.


• The alternative does not fully repeal the 1099 paperwork mandate in the health care law, the mandate still applies to businesses with more than 25 employees.

Businesses Burdened By New Tax Paperwork Under The Alternative:

• Nebraska: 2,239 Nebraska businesses* with a total of 507,625 employees.

o 953 small businesses in Nebraska

• Nationally: 106,897 businesses* with a total of 77,911,069 employees.

o 88,586 small businesses nationally

(U.S. Census Bureau, http://www.census.gov/econ/susb/, Accessed 8/6/10)

*This number includes businesses with more than 100 employees.

Businesses Burdened By New Paperwork Under The Johanns Amendment:

• Nebraska: 0

• Nationally: 0

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