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The provision, passed last year as a way to raise money to pay for healthcare reform, would have forced all businesses to file special tax forms to report anyone with whom they did more than
The repeal was welcomed by small-business owners and advocates across the nation, who had fought hard to push
“This would have been an administrative nightmare for small business,” said
Hauge said he had never seen an issue galvanize the small-business community as quickly or as powerfully as this.
When the provision was initially passed, the Obama administration said the additional paperwork would help the
But small-business owners reacted immediately, saying that the measure was unwieldy and unfair. It would have required businesses to send a tax form known as a 1099 to vendors, retailers, utility companies and any other entity they’d contracted with. They also would have had to file a copy of the form with the
By contrast, the law had previously only required that such forms be filed for freelance workers and others who had been hired as independent contractors.
Because of the outcry, the administration reversed course and agreed to support a repeal. Obama spokesman
“We are open to working with Republicans and Democrats to improve the health reform law, and we are pleased
“They’re looking in every mouse-hole to see where people may be cheating on taxes, as if that’s the way to increase revenue in this country,” Czyzyk said. “The Chamber is very glad both
The measure to repeal the tax provision was authored sponsored by Rep.
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