Rep. Frank Lucas, Chairman of the House Agriculture Committee, today issued a statement in response to the Commodity Futures Trading Commission's (CFTC) surprise "advisory notice" to further regulate cross-border swaps.
The Ag Minute: House Votes to Repeal 1099 Provision
Tamara Hinton, 202.225.0184
WASHINGTON – Today, the U.S House of Representatives voted to repeal the 1099 filing provision in the 2010 health care legislation in a bipartisan vote of 314-112. During The Ag Minute, Rep. Frank Lucas, Chairman of the House Agriculture Committee, discusses the need for Congress to continue to work together to get a bill to the President's desk that eliminates the provision. This requirement would be especially burdensome for farmers, ranchers, and small businesses.
Click here to listen to The Ag Minute. The transcript is below.
"The U.S. House of Representatives voted to repeal a provision in President Obama’s health care legislation that would be an administrative nightmare for farmers, ranchers, and small businesses. This is just one step and a lot of work is still left to be done.
"The provision, which should have never been inserted in the health care bill, would require a 1099 form be filed with the Internal Revenue Service for each individual to whom $600 or more is paid to in a year.
"Grain elevators, farmer cooperatives, and virtually any agricultural business which purchases even small volumes of commodities will be subject to this requirement for each farmer they buy from in a year.
"For farmers and cooperatives, large and small, this tax filing provision will be immensely burdensome.
"For example, a farmer would have to fill out forms for each planting season for:
- maintenance parts, and
"This is for every crop and may deal with multiple entities in each of these categories.
"Additionally, this reporting requirement will drive up the administrative costs for small businesses. The added expense means they’ll have less money to hire new workers or retain existing ones.
"Our farmers and ranchers need to focus on feeding a growing global population; our small businesses need to focus on growing our economy and creating job opportunities.
"They can’t afford any more irrational and unreasonable paperwork burdens from bureaucrats in Washington who know neither how to grow food nor grow our economy.
"I urge my colleagues in both the House and Senate to work together to eliminate this requirement that should have never been passed in the first place."
The Ag Minute is Chairman Lucas's weekly radio address that is released each week from the House Agriculture Committee.