Washington, DC– US Congressman Charles Boustany Jr. (R-Southwest Louisiana) today urged the immediate repeal of the 1099 reporting provision of President Obama’s health-care law. As a doctor on the Ways and Means Committee, Boustany has been vocal in his opposition to this expensive provision. He has repeatedly called for a repeal of Obamacareand replacement with a practical health-care plan that protects the doctor-patient relationship.

Boustany called for swift action on the repeal, pointing out that the provision was flawed from its inception. “The President thinks it’s bad, Democrats think it’s bad, Republicans think it’s bad,” Boustany said.“It has taken long enough to move on this issue, and further delay is unacceptable.”

The new health-care law expanded tax reporting rules by requiring businesses to issue a Form1099 for any payments to corporations and for any payments for property that exceed $600 per year per payee.  This new requirement imposes a huge tax compliance burden on small businesses, forcing them to devote resources to tax filing instead of to business expansion and job creation. 

Businesses in Louisiana are already feeling the financial strain of the 1099 provision. “To prepare for this new rule, businesses must begin reprogramming purchasing and accounts payable systems now,” said Judy Maskrey, Director of Federal Taxes at PPG Industries, which has a large presence in Lake Charles, Louisiana. “This effort could cost a company $1 to 2 million, perhaps more. Until the law is repealed, taxpayers must assume it will go into effect and businesses are therefore planning the systems changes now. The crisis is now.  We cannot wait until the end of 2011 to enact the changes.”

“Repealing this provision is the right thing to do, but is only the beginning of our work to fully dismantle this law,” Boustany said.“We need a practical health-care plan to improve quality, reduce costs and expand effective coverage, while improving the doctor-patient relationship.”