Friday, August 13, 2010

Healthcare Reform a Paperwork Nightmare for Farmers

U.S. Representative Adrian Smith, R-Neb., believes farmers face an administrative nightmare with President Obama's new health care law. Section 9006 of the law requires that all businesses file a 1099 with the Internal Revenue Service for every contractor from which they purchase $600 or more in goods or services in a calendar year.
During the weekly House Agriculture Committee Republicans feature the Ag Minute, Smith further explained the situation by saying that when a farmer or rancher spends $600 on feed corn, seeds, fertilizer, fuel, tractors or nearly every other expense, they will have to research and prepare a 1099 form for each and every purchase. He said this will prove to be an administrative nightmare for the nation's family farms.
In response, Smith has cosponsored HR 5141, the Small Business Paperwork Mandate Elimination Act, which will repeal this new requirement. According to Smith the nation's farmers and ranchers already have enough headaches when it comes tax time and Congress shouldn't be making them worse to pay for a misguided health care bill.