Larson objects to GOP plan to raise taxes on working families

WASHINGTON D.C. – U.S. Congressman John B. Larson (CT-01) today objected to H.R. 4, the House Republican plan to repeal the 1099 tax filing requirements that were created as part of the new health care law because Republican leaders chose to pay for the repeal by raising about $25 billion in taxes on middle income families.

"I've heard from small business owners from across my district on how difficult these new tax reporting requirements are for them, and I strongly support their repeal. In fact, I voted to roll them back on the House Floor last year," said Larson, who is a member of the House Ways and Means Committee, which oversees tax policy. "What I have not heard is anyone saying that we should do it by raising taxes on working families. And that's what this bill would do."

"I was proud to support legislation last year that would have repealed this requirement and paid for it by closing tax loopholes that ship American jobs overseas," Larson added. "Unfortunately, Republicans in Congress objected to closing those loopholes that are costing us jobs. Apparently, those objections don't apply to increasing the burden on hard-working middle class families."

The National Taxpayer Advocate has reported that the new 1099 reporting requirements would adversely affect millions of small businesses around the country. There is broad consensus that the provision should be repealed, however, repealing it would cost nearly $25 billion, which must be offset by savings elsewhere. The Senate already passed a similar bill that would repeal the provision, but pay for it through spending cuts.

"I strongly support the repeal of the 1099 provision, but I don't believe we should be doing it by increasing taxes on middle class families. They're already paying more than their fair share, I simply can't vote to increase their burden," Larson concluded. "I hope the Republican Leadership will follow the Senate's lead and repeal this provision without raising taxes on working families."