As Obama gets ready to talk "competitiveness" -- aka, business productivity -- Harry Reid and Senate Finance Chairman Max Baucus introduce a repeal of the new 1099 reporting requirements, which require small businesses to report more payments for goods and services (not paychecks to employees) to the IRS. From Reid:
"Small businesses, the engine of our economy, told us the 1099 provision was burdensome, and we are responding quickly to ensure that they can keep running smoothly," said Reid. "Making it easier for small businesses to thrive should be something Republicans and Democrats can agree on. I hope we can come together on common-sense reforms like these to improve a law that is already saving money and saving lives."
1099 reporting for small expenses is a huge, huge issue for small businesspeople. Or so I'm told, not being a small businessperson myself. Someone involved in a business coalition once told me that 1099 was their top issue, and that new reporting rules are so ridiculously onerous they couldn't even realistically be implemented.
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