By Rob Hotakainen, Washington
The ink is barely dry on the massive health-care overhaul signed into law by President Barack Obama last month, but Republican Rep. Dan Lungren is ready to do a little tinkering.
Lungren, of Gold River, introduced the Small Business Paperwork Mandate Elimination Act, which would scrap some reporting requirements contained in the legislation.
Under the new law, any business that purchases more than $600 of goods or services from another business must submit a 1099 tax form to the Internal Revenue Service. Lungren is proposing to remove that mandate, which is scheduled to take effect in 2012.
The 1099 is the IRS from the annual reporting of dividend and interest payments made to investors.
Lungren said large corporations have the personnel to handle such paperwork but that the requirement would hurt small businesses, serving as "yet another brick on their back."
"I am dumbfounded that this administration is doing all it can to make it more difficult for businesses to succeed rather than doing all it can to help them grow," Lungren said.
The White House did not respond to a request for comment.