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Published in the Amsterdam Recorder 9/1/2010

To the editor:

I am writing in response to the Aug. 25 letter from Deborah Auspelmyer and Charles Schwartz of the Montgomery County Chamber of Commerce titled "Health care mandate would hurt small businesses."
 

The specific mandate that President Auspelmyer and Chairman Schwartz refer to is section 9006 of the Affordable Care Act. This provision imposes a burdensome 1099 reporting mandate on many small businesses. It requires businesses that pay $600 or more at any point in the year for goods or services to file an information report with the vendor or recipient of the payment and the IRS.
The U.S. Chamber of Commerce estimates that this could affect 40 million businesses when it takes effect in 2012 with increased paperwork burdens and reporting costs. Both President Auspelmyer and Chairman Schwartz are calling for the repeal of this provision.
 

Simply put, I agree with the chamber.
 

In fact, on July 30, 2010, I voted for the Small Business Tax Relief Act of 2010 which sought to repeal this section of the Affordable Care Act.
Unfortunately, Republicans in the House voted against the measure which prevented it from passing. At this critical time, we need to put the interests of small businesses and economic growth ahead of petty politics. I urge all of my Republican colleagues in the House to ease this burdensome regulation from our nation's small businesses.
 

Not only would the Small Business Tax Relief Act of 2010 have repealed the 1099 reporting requirement, it would have helped to make American businesses be more competitive by closing tax loopholes for corporations that ship jobs overseas.
When Congress resumes its legislative business in September, I will continue to fight to repeal the 1099 provision and will insist that House leadership re-consider this important bill.
 

During my service in Congress, I have traveled extensively throughout the 21st Congressional District meeting with constituents, small business owners and our Chambers of Commerce. One theme that continued to emerge from those meetings and discussions was that the current state of health care was not sustainable for small business owners.
And, while I agree that the 1099 provision should be repealed, I strongly believe that the Affordable Care Act provides much needed help for our small businesses. Specifically:

• The act creates competitive marketplaces called "health insurance exchanges" where small businesses, their employees and the self-employed can purchase affordable coverage.
• The reforms allow small businesses - for the first time - to pool their buying power and have access to the same quality plans available to large firms today
• The act provides $40 billion in tax credits - effective Jan. 1, 2010 - for small businesses to help them offer employee health insurance coverage if they choose to do so.

Since some small businesses will choose not to offer employee coverage, the reform exempts all small firms with fewer than 50 employees from the employer responsibility requirements. So, 96 percent of all small businesses in the U.S. will be exempt. However, many small businesses that do not currently offer coverage will be more likely to do so because of new tax credits, lower premiums, and better choices provided by the Affordable Care Act.
 

I thank Deborah Auspelmyer and Charles Schwartz of the Montgomery County Chamber of Commerce for helping to bring this issue to the attention of their membership, our small business owners and the community at-large. I look forward to working with them, and the other Chambers in the 21st Congressional District, to implement these much needed health care reforms so our small businesses can lead the way to our economic recovery. As the engine of growth, our future competitiveness as a nation and our job creation potential are counting on the ideas, innovations and dedication of our small businesses. I am committed to working with all of these local small businesses to make sure America and her hard working citizens return to a position of strength and a state of good health.
 

Rep. Paul D. Tonko
21st Congressional District