As the 112th Congress takes up debate over the 1099 reporting mandate, photographers will want to keep one eye on Capitol Hill. Members of Congress seem poised to pass a bill to repeal the 1099 mandate made law by Section 9006 of last year’s Patient Protection and Affordable Care Act.
Picking up where we left off last Congress, SEP has plugged into the current congressional debate and is making photographers’ concerns with the existing mandate known. One of these efforts includes partnering with the Small Business Coalition for Affordable Health Care in a letter sent to the U.S. House of Representative Leaders on February 15, 2011, as the U.S. House prepares to hold hearings and possibly vote on repeal legislation this week.
“Photographers did walk away from the last Congress with a small victory on the tax front when the Small Business Jobs and Tax Credit Act was signed into law,” says David Trust, AVA Chief Executive Officer. “However, we believe Congress can do more for the small-business photographer by overturning this tax mandate that will create endless hours of paperwork.”
Don’t hesitate to tell your congressperson or senator that you want to see repeal legislation passed. You can visit the Contact Congress page at any time to call, write, or send an e-mail to your representatives.
What’s on the Table?
Since their return on January 5, both the U.S. House and the U.S. Senate have introduced a number of bills in the hopes of helping small-business photographers by repealing this burdensome tax provision.
In the U.S. House, the following bills have been presented:
- H.R. 4 and H.R. 144 (Small Business Paperwork Mandate Elimination Act of 2011) introduced by Rep. Daniel Lundgren (R-CA-3)—These are bills that solely repeal the 1099 reporting requirement. They are reflective of Rep. Lundgren’s efforts last Congress to secure the passage of a repeal bill.
- H.R. 60 introduced by Rep. Steve Scalise (R-LA-1)—This bill is also intended to exclusively repeal the 1099 reporting requirement.
- H.R. 584 introduced by Rep. Joe Courtney (D-CT-2)—This bill includes a repeal of the 1099 requirement and language that ensures money is appropriated to compensate for the projected loss in tax revenue. (It was introduced February 9.)
Meanwhile, these bills are up for consideration in the Senate:
- S.18 (Small Business Paperwork Mandate Elimination Act of 2011) introduced by Sen. Mike Johanns (R-NE)—Like Rep. Lundgren, Sen. Johanns worked diligently during the last Congress to secure the passage of a repeal bill. S.18 mirrors legislation he proposed late last Congress.
- S.72 introduced by Sen. Max Baucus (D-MT)—This is exclusively a repeal bill. Unlike Sen. Johanns’ version, it does not include an appropriations provision that would offset lost revenue.
The Senate was also successful in securing the unanimous passage of S.Amdt.9, a repeal bill proposed by Sen. Debbie Stabenow (D-MI). This amendment is attached to S.223 - FAA Air Transportation Modernization and Safety Improvement Act, which the chamber is debating this week.
Ready to Take Action?
You, too, can pick up where you left off last Congress. Reach out to your senator, congressman or congresswoman by visiting the
page to call, write or e-mail about the importance of eliminating this tax requirement.
In addition to representing members on copyright issues, SEP is a strong advocate on small business issues, primarily relating to health care. Through the Small Business Coalition for Affordable Healthcare, SEP advocates health care solutions that meet the needs of small business owners, employees, the self-employed and their families. In previous congressional sessions, SEP has supported various health reform bills, in particular those that would provide trade associations the ability to create insurance pools on behalf of its members.