We must repeal "1099" without hurting U.S. middle class
Today, House Republicans unanimously voted against protecting middle class families from potential tax hikes in the “1099” small business reporting requirement repeal bill. While House Democrats strongly support the repeal (which we proposed last year), the GOP bill penalizes hard working middle class Americans with $25 billion in new taxes.
The GOP middle class tax hike
Under the Republican proposal, middle class workers who have done well at work and gotten a pay raise, accepted a bonus from the boss, or picked up extra shifts to pay for child care could pay as much as $5,000 more in taxes. The GOP bill forces families whose increased income puts them over 400 percent of the federal poverty level ($88,000) to fully refund their federal tax credit for health care premiums – even if it’s just one dollar of increased income that puts them over the limit! For example, under the GOP plan, a family of four that gets a $250 holiday bonus that pushes their income over $88,000 will be forced to pay $4,640 to the IRS for a tax credit they previously received to pay for health insurance.
A responsible solution that prevents outsourcing U.S. jobs
Just last year, Republicans voted against the Democratic proposal to repeal “1099,” which provided a responsible way to pay by closing tax loopholes that allowed corporations to outsource American jobs overseas. Although House Democrats strongly support the repeal of the “1099” small business reporting requirements, which unduly places a paperwork burden on small business and family owned enterprises, we vehemently disagree with the Republican plan that hurts middle class families.