ESA Encouraged by President’s Call to Repeal Onerous Tax Requirement
Wednesday, January 26, 2011
(0 Comments)
Did your email system distort this message? See it online.
For Immediate Release
PRESS RELEASE
ESA Media ContactsLaurie A. KnoxDirector of Communications,Public Relations & MarketingPhone: (888) 447-1689 ext. 209E-mail:[email protected] SmithCommunications SpecialistPhone: (888) 447-1689 ext. 210E-mail: [email protected]
ESA Encouraged by President’s Call to Repeal Onerous Tax RequirementBills filed in Congress to repeal 1099 reporting requirement
Irving, Texas, January 26, 2011 – During his State of the Union address to congress last night, President Barak Obama restated his support for repealing the 1099 reporting requirement passed within the health care legislation last year. The Electronic Security Association (ESA) believes the requirement places a heavy burden on the backs of the small business owners.
In his speech, President Obama agreed, stating, “Anything can be improved…We can start right now by correcting a flaw in the legislation that has placed an unnecessary bookkeeping burden on small businesses.â€
Beginning in 2012, businesses will be required to report all goods and services transactions valued at more than $600 by filing a 1099 form with the IRS. The requirement would raise $19 billion over 10 years to help pay for the cost of health care reform by allowing the federal government to collect taxes from those businesses that fail to report them.
ESA believes the provision will add mountains of additional paperwork and additional expenses to small business owners that can’t afford them during tough economic times. ESA’s government relations team, as part of a coalition that includes groups such as the U.S. Chamber of Commerce, has been lobbying Congress to have the provision repealed. Along with the President, both Democrats and Republicans in Congress have supported repealing the language.
Rep. Dan Lungren (R-CA) has introduced H.R. 4, the Small Business Paperwork Mandate Elimination Act of 2011 to repeal the requirement. The measure has 258 co-sponsors and House Republicans have signaled that it will be one of their first pieces of business.
Similar bills have also recently been introduced in the Senate. Sen. Mike Johanns (R-NE) introduced S. 18, which currently has 55 co-sponsors. The measure would repeal the provision while also providing an offset for the $19 billion by rescinding $39 billion in unspent, unobligated funds from all accounts.
Senate Finance Chairman Max Baucus (D-MT) and Senate Majority Leader Harry Reid (D-NV) have introduced S. 72, an identical measure to Lungren’s bill.
While bi-partisan support for a repeal of the requirement exists in Congress, lawmakers failed to reach an agreement and pass a bill before the end of the 111th Congress. ESA encourages both the House and the Senate to work together to pass a repeal measure and show they are listening to the voices of the small business owners of America.
ABOUT ESA
Established in 1948, the Electronic Security Association (ESA) is the largest trade association representing the electronic life safety and security industry. Member companies install, integrate and monitor intrusion and fire detection, video surveillance and electronic access control systems for commercial, residential, industrial and governmental clients. In cooperation with an alliance of chapter associations, ESA provides technical and management training, government advocacy and delivers information, advice, tools, and services that members use to grow their businesses and prosper. ESA may be reached at (888) 447-1689 or on the Web at www.ESAweb.org.
You are receiving this press release as a courtesy of the Electronic Security Association (ESA). If you do not wish to receive future news releases, please reply with “REMOVE” in the subject line. If you prefer to receive information in a different format, or as an attachment, or if you need additional information, please contact the Communications Department.
Electronic Security Association2300 Valley View Lane, Suite 230 • Irving, TX 75062Toll Free (888) 447-1689 • Local (214) 260-5970 • Fax (214) 260-5979
All content 2010© Electronic Security Association, Inc.