SENATOR COLLINS VOTES TO REPEAL UNFAIR REGULATION THAT BURDENS SMALL BUSINESSES

Senator Susan Collins voted Tuesday in support of an amendment to repeal a provision of the recently enacted health care law that increases costs and creates onerous paperwork for small businesses and charitable organizations. The rule, which is scheduled to take effect in 2012, requires business owners to file separate tax forms, called 1099s, for all business transactions totaling $600 or more in a given year.

Senator Collins voted in favor of an amendment offered by Sen. Mike Johanns (R-NE) that would have repealed this provision of the health care law. The amendment was strongly supported by the U.S. Chamber of Commerce and the National Federation of Independent Business (NFIB.)

"I am disappointed that the Senate missed this critical opportunity to repeal an unfair mandate that will further burden our small businesses, which are already struggling during these difficult economic times," said Senator Collins. "This section creates huge amounts of paperwork for as many as 40 million businesses and other entities, increases overhead costs for small businesses, creates disincentives for businesses to use small suppliers, and discourages job creation. Furthermore, the sheer volume of resulting paperwork has the potential to result in improper penalties assessed by the Internal Revenue Service. I will continue to support efforts to repeal this senseless provision."

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