WASHINGTON, DC . . .  Tuesday night Rep. Ralph Hall (R-TX) voted with a House majority, 335-91, to pass a two-week continuing resolution (CR) to fund the federal government through March 18^th. The resolution prevents a government-wide shutdown that would have occurred on March 4 had a short-term budget not been agreed upon. The Senate passed the House resolution the following morning. Negotiations will continue with the Senate on a CR to fund the rest of the fiscal year (FY).   

          “My focus is to help create jobs and save our children’s future from national bankruptcy,” said Hall. “In order to do this, we must stop spending money we don’t have. The way to national financial prosperity is not found through increased spending or an increasing size of government – if it were, we would not be in the position we currently find ourselves.”

           Hall continued, “Polls clearly show that the American people want significant spending cuts in Washington, and House Republicans continue to pass bills that reflect the will of the people. The original CR passed by the House on February 19 proposed $100 billion in cuts from the remaining fiscal year 2011 budget.  The two-week CR is the second option the House sent the Senate. Both resolutions offer federal spending reductions that would promote job creation and economic growth.”

          The latest resolution includes $4 billion in spending reductions, including $2.7 billion in cuts by removing approximately fifty unspent earmarks from FY 2010, and $1.24 billion through program cuts and terminations that both House Republicans and the President targeted for savings.

           “It is imperative that Congress promptly complete a federal budget in an open and transparent fashion,” said Hall. “I will continue to uphold my responsibility by fulfilling my commitment to the American people to cut spending and get the national debt under control.”   

Repeal of Health Care Law’s 1099 Provision

            On Thursday Hall voted with the House to pass H.R. 4, which repeals the burdensome 1099 tax reporting provision included in the Democrats’ health care law passed last Congress. The legislation:

• Repeals onerous tax reporting provisions enacted last year to help pay for both the health care law and TARP III legislation;
• Protects taxpayers by reducing waste, fraud and abuse in the health care law; and
• Reduces the deficit by $166 million in the first ten years and by billions of dollars over the long run, while reducing federal spending by nearly $20 billion over ten years.

            H.R. 4 repeals the health law’s 1099 expanded tax information reporting rules on small businesses, as well as requirements imposed on taxpayers not engaged in business activity, which would require a 1099 form for any payments that exceed $600 per year per payee. Small businesses would be forced to issue a 1099 form for any payments to corporations or payments for property that exceed $600, and the everyday taxpayer would be responsible for issuing a Form 1099 for everyone they pay more than $600 in a year  (e.g. plumbers, lawn services, pool cleaners, rental proprietors). 

            Meeting these requirements would be time consuming and a waste of monetary resources, which could cripple families and small businesses already struggling financially.

          “This legislation is committed to protecting small business, their workers, and American taxpayers,” said Hall. “They are the backbone of our economy. Small businesses have generated 64% of net new jobs over the past fifteen years. Financially stable families and small businesses translate to a financial stable economy.”