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Congressman Tom Marino

Representing the 12th District of Pennsylvania

Marino Votes To Repeal Burdensome 1099 Provision

March 7, 2011
Press Release

LEWISBURG, Pa. – Andrew Borden was a little baffled when he recently received an IRS Form 1099 from a vendor.
Borden, president of Builders Supply Co., Lewisburg, could not figure out why he would receive a 1099 – an end-of-year tax form usually sent to independent contractors including freelance workers.
So, Borden did a little investigating.
And what he discovered made him so angry that he penned a letter to his congressman, U.S. Rep. Tom Marino.
At the time, Marino, a freshman Republican from Lycoming County, was becoming acquainted with his new role, the legislative process and a massive piece of legislation passed last year by the previous Congress – ObamaCare.
As Marino was reading letters from Borden and numerous other business owners in Pennsylvania’s 10th Congressional District, he was also sifting through the health-care bill.
Hidden inside the legislation was Section 9006, a one-paragraph provision requiring businesses to issue 1099 tax forms to any vendor for purchases that exceed $600 in one year.
“This was the kind of law that could have broken me,” Borden said. “As a business, we have to be profitable, and with that requirement, it could not have happened.”
Borden estimates he would have had to send out 500 to 600 1099s to his customers and would have had to deal with 200 to 300 incoming forms for Builders Supply Co.’s purchases with other vendors.
Marino, who voted to repeal the health-care bill and cast numerous votes to defund it, stopped at Builders Supply on March 3 to deliver the good news: The House had voted 314-112 to repeal the burdensome regulation.
“We are finding more and more ridiculous pieces in this huge ObamaCare bill,” Marino said, waving the one-paragraph Section 9006 provision during a visit to the 70-year-old business. “This repeal passed overwhelmingly with bi-partisan support because everyone agrees that this does not belong in a health-care bill.
“This is proof that Nancy Pelosi was accurate when she said that Americans would not know what was inside the bill until it was passed.”
Marino said the 1099 regulation would have affected 40 million entities, from small businesses to nonprofits and local governments. It would have buried business owners in unnecessary paperwork at a time when they are struggling to do more with less because of the ailing economy, he said.

“With this repeal, we are freeing Art (Borden) and others like him, to concentrate on their businesses,” Marino said. “This is, in effect, a tax cut for businesses, and I believe it will lead to more jobs being created.”
Marino’s office received numerous letters from small business owners, and private practice physicians and dentists, who feared the extra paperwork would become too costly.
In his letter to the congressman, Borden said it was “hard to believe that elected representatives of our people could be so irresponsible to allow such a ridiculous provision as the 1099 mandate included in the recently passed health care law.”
Marino believes the 1099 provision was inserted into the health care bill as one way to generate funds to pay for “ObamaCare” because the authors of the bill had no idea where to find the money to cover its tremendous price tag.
“We were sent to Washington to shrink government, spend less money and get the economy moving again,” he said.

Borden, who has worked at the building supply business since 1946, said he was thrilled to hear about the repeal. The business opened in 1941 and deals with building contractors and do-it-yourselfers in the Lewisburg area.
“We need more common sense in Washington,” Borden said. “This is a breath of fresh air. Let’s hope the momentum we see here is the beginning of something significant.”