March 3, 2011 CONGRESSIONAL RECORD — HOUSE H1529 and yet we’re not doing a thing about It’s time to get on with the business Alzheimer’s, for Parkinson’s, for diabe- it. of creating jobs and get rid of the Re- tes, for heart disease. I ask you for the The President, in my opinion, Mr. publican no-job agenda. living Americans to not cut grants to Speaker, is being derelict in his respon- f the National Institute of Health and sibility in making sure that we’re mov- let us have lives that go further than ing towards energy independence. They b 1020 they otherwise would because of these talk about windmills and solar and nu- NO JOBS BILLS crippling, catastrophic illnesses. clear, and that’s all great; but that’s f going to take a lot of time. (Ms. EDWARDS asked and was given We have a tremendous amount of en- permission to address the House for 1 SMALL BUSINESS PAPERWORK ergy in this country. We can be energy minute and to revise and extend her re- MANDATE ELIMINATION ACT OF independent within 10 years if we get marks.) 2011 Ms. EDWARDS. Mr. Speaker, well, on with it. We’re too dependent on for- Mr. CAMP. Mr. Speaker, pursuant to here we are. It’s 8 weeks into the 112th eign energy. It’s dangerous. House Resolution 129, I call up the bill Congress and still not a single Repub- f (H.R. 4) to repeal the expansion of in- lican proposal to create jobs and formation reporting requirements for REPEALING THE 1099 PROVISION’S strengthen our economy. No jobs pro- payments of $600 or more to corpora- NEGATIVE ECONOMIC CON- posals and no jobs. tions, and for other purposes, and ask SEQUENCES Instead, we have a series of reports for its immediate consideration. (Mr. RICHMOND asked and was given stating really clearly that the Repub- The Clerk read the title of the bill. permission to address the House for 1 licans’ slash-and-burn budgets would The SPEAKER pro tempore (Mr. minute and to revise and extend his re- eliminate jobs, hundreds of thousands JOHNSON of Illinois). Pursuant to House marks.) of them, and send our economy spi- Resolution 129, the amendment in the Mr. RICHMOND. Mr. Speaker, my raling back into recession. Even Gold- nature of a substitute consisting of the Republican colleagues came down here man Sachs says that the Republican text of the amendment recommended yesterday, and will do so again today, continuing resolution would depress by the Committee on House Ways and like a well-rehearsed choir singing the economic growth by 2 percent and raise Means, printed in H.R. 705 is adopted same song: Repeal the 1099 provision, unemployment by 1 percent. Mark and the bill, as amended, is considered repeal the 1099 provision. They sang it Zandi, the economist, notes that this read. in perfect harmony. slash-and-burn idea of spending would The text of the bill, as amended, is as However, they conveniently left out cost our country 700,000 jobs. follows: two verses. One, last year 239 Demo- So here we are again, 8 weeks into crats and only two Republicans voted the new leadership, and all we get is H.R. 4 to repeal it. Second, they will pay for negative growth and job loss. Be it enacted by the Senate and House of Rep- the repeal by reaching into the pockets So, Mr. Speaker, where are my col- resentatives of the United States of America in Congress assembled, of working Americans and yanking out leagues? They need to get serious $25 billion. That’s just wrong. about creating jobs, strengthening our SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘Comprehensive So, Mr. Speaker, I remind my col- economy, and ensuring long-term leagues that their song has two addi- 1099 Taxpayer Protection and Repayment of Ex- growth for our children and grand- change Subsidy Overpayments Act of 2011’’. tional verses. Just because they won’t children. sing about their tax increase doesn’t SEC. 2. REPEAL OF EXPANSION OF INFORMATION I would urge us to get together, REPORTING REQUIREMENTS TO PAY- mean the American people won’t feel House Democrats, Senate Democrats, MENTS MADE TO CORPORATIONS it. I, too, want to repeal the 1099 provi- and Republicans, in a good-faith effort AND TO PAYMENTS FOR PROPERTY AND OTHER GROSS PROCEEDS. sion, but this is not the way to pay for to pass a funding bill for the remainder it. (a) APPLICATION TO CORPORATIONS.—Section of the year that really guarantees our 6041 of the Internal Revenue Code of 1986 is Mr. Speaker I yield back because I future and creates jobs for our econ- will not be a co-conspirator to snatch- amended by striking subsections (i) and (j). omy. The American people cannot af- (b) PAYMENTS FOR PROPERTY AND OTHER ing $25 billion out of the bank accounts ford to see our economy sliding back- GROSS PROCEEDS.—Subsection (a) of section 6041 of hardworking Americans. wards. of such Code is amended— f (1) by striking ‘‘amounts in consideration for f property,’’, and REPUBLICANS’ ‘‘NO-JOB AGENDA’’ DON’T CUT NIH FUNDING (2) by striking ‘‘gross proceeds,’’ both places it (Mr. ELLISON asked and was given appears. permission to address the House for 1 (Mr. COHEN asked and was given per- (c) EFFECTIVE DATE.—The amendments made minute and to revise and extend his re- mission to address the House for 1 by this section shall apply to payments made marks.) minute and to revise and extend his re- after December 31, 2011. Mr. ELLISON. Mr. Speaker, we’ve marks.) SEC. 3. REPEAL OF EXPANSION OF INFORMATION now entered about the 55th day when Mr. COHEN. Mr. Speaker, St. Jude REPORTING REQUIREMENTS FOR Children’s Research Hospital is located RENTAL PROPERTY EXPENSE PAY- the Republican majority has been in MENTS. control of the House, and they’ve yet in Memphis, Tennessee. It is, according (a) IN GENERAL.—Section 6041 of the Internal to introduce a single bill to create a to U.S. News and World Report, the Revenue Code of 1986 is amended by striking single job for anyone anywhere. world’s greatest children’s and cata- subsection (h). The Republican majority has, how- strophic illness research hospital. (b) EFFECTIVE DATE.—The amendment made ever, introduced cuts to our national The Republican budget that passed by this section shall apply to payments made budget that will take away vital pro- this House talks about a lot of issues, after December 31, 2010. grams and cut jobs—cut jobs like cops but it cuts $2.5 billion from the Presi- SEC. 4. INCREASE IN AMOUNT OF OVERPAYMENT dent’s requests for the National Insti- OF HEALTH CARE CREDIT WHICH IS and nurses and teachers and things like SUBJECT TO RECAPTURE. that. tute of Health, $2.5 billion less than the (a) IN GENERAL.—Clause (i) of section The Republican majority doesn’t President recommends, and a $1.6 bil- 36B(f)(2)(B) of the Internal Revenue Code of seem to be interested in jobs, and their lion cut from last year. For the chil- 1986 is amended to read as follows: no-job agenda will not escape the view dren and the adults and everyone who ‘‘(i) IN GENERAL.—In the case of a taxpayer of the American people. has cancer and needs a cure, which whose household income is less than 400 percent The American people sent us all here they are finding with the help of the of the poverty line for the size of the family in- to make sure that we have a more per- NIH and St. Jude and other research volved for the taxable year, the amount of the fect Union, that we have prosperity in hospitals, that’s a death sentence. Peo- increase under subparagraph (A) shall in no event exceed the applicable dollar amount deter- our land. We don’t have it because un- ple will die. mined in accordance with the following table employment is just too high, and the If there is a place the Republicans (one-half of such amount in the case of a tax- Republican majority is not doing a should not cut, Mr. Speaker, it’s at payer whose tax is determined under section 1(c) thing about it. NIH grants to find cures for cancer, for for the taxable year):

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‘‘If the household income (expressed as a percent of poverty line) is: The applicable dollar amount is:

Less than 200% ...... $600 At least 200% but less than 300% ...... $1,500 At least 300% but less than 400% ...... $2,500.’’.

(b) EFFECTIVE DATE.—The amendment made Also brought forward by Mr. TIBERI mittee on Taxation, under the better by this section shall apply to taxable years be- of Ohio in September of last year, a enforcement rules of H.R. 4, some peo- ginning after December 31, 2013. form 1099 reporting requirement was ple won’t go into the exchange to ac- The SPEAKER pro tempore. The gen- expanded again to help pay for the cept a taxpayer-funded subsidy because tleman from Michigan (Mr. CAMP) and small business lending law. This expan- they would be required to pay a larger the gentleman from Michigan (Mr. sion treats the recipient of rental in- share or, in some cases, all of the sub- LEVIN) each will control 75 minutes. come from real estate as engaging in sidy back under H.R. 4. Paying back The Chair recognizes the gentleman the trade or business of renting prop- money you weren’t entitled to is not a from Michigan (Mr. CAMP). erty. Unless repealed, families and in- tax increase. GENERAL LEAVE dividuals will be forced to fill out pa- For example, under current law, a Mr. CAMP. Mr. Speaker, I ask unani- perwork if they do something as basic household making $105,000 might think mous consent that all Members may as replace a refrigerator in an apart- it’s worth understating its income, or have 5 legislative days within which to ment they rent out. The National Asso- at least not updating their income in- revise and extend their remarks and in- ciation of Realtors, which supports formation, in order to receive a $12,000 clude extraneous materials on H.R. 4. H.R. 4, called this provision not only The SPEAKER pro tempore. Is there exchange subsidy because they would another paperwork burden but a trap objection to the request of the gen- only have to pay back $3,000 if caught; for all small landlords. tleman from Michigan? but the household is less likely to do so There was no objection. Mr. Speaker, neither of these provi- under H.R. 4 because it would have to Mr. CAMP. Mr. Speaker, I yield my- sions reflects the wishes or needs of the pay back the entire subsidy given there self such time as I may consume. American people. The most important was no eligibility for the subsidy in the Today the House considers H.R. 4, issue on their minds is jobs. Let me say first place. legislation repealing one of the job- it again: jobs, jobs, and jobs. But de- So let’s be clear here. Voluntarily killing tax increases enacted in the spite the call for policies that can cre- choosing not to enroll in government Democrats’ health care law last year. ate a better climate for job creation, health care and thus foregoing the as- This legislation provides a pathway to Congress has enacted policies that sociated tax subsidies that one may achieving a goal that is shared by Re- make this harder. not be eligible for might result in more publicans and Democrats in the House H.R. 4 will accomplish three goals. government revenue, according to the and Senate alike, and by the Obama First, the legislation repeals the ex- Joint Committee on Taxation. But administration—repealing the form panded 1099 reporting requirements on that is not a tax increase. small businesses. Second, it repeals the 1099 reporting requirements enacted H.R. 4 is endorsed by more than 225 new 1099 reporting requirements for last year. organizations, including the American rental property. Before I get into the details of H.R. 4, Farm Bureau, the U.S. Chamber of I would like to take a moment to rec- b 1030 Commerce, the American Osteopathic ognize and commend my colleague and Third, it protects taxpayers by recov- Association, and Americans for Tax friend, Congressman DAN LUNGREN of Reform. Grover Norquist of ATR wrote California. He first brought this issue ering overpayments of taxpayer-funded government subsidies. he was especially pleased about the re- to light, and through his hard work we peal of the 1099 provisions and the bill are here today to vote on a bill that What that means, and I know we are going to hear a lot about it from the is ‘‘a net tax cut.’’ That’s because de- has enjoyed strong bipartisan support. spite the claims to the contrary, H.R. 4 We have been here talking about other side today, is that if this bill reduces Federal spending by nearly $20 1099s before. Some have even gone so passes, anyone earning more than 400 billion over the next 10 years. It also far as to say there seems to have been percent of poverty, nearly $95,000 for a 1,099 votes to repeal 1099s. While we family of four in 2014, and who is ineli- reduces the deficit by $166 million over have attempted in the past to repeal gible for the exchange subsidies under that same time. That’s probably why this misguided feature of last year’s the 2010 health care law will be re- the bill is supported by Americans for health overhaul, today we turn a cor- quired to pay back all, not just some, Prosperity and the National Taxpayers ner and move H.R. 4 from the House to of the improper payments. I would like Union as well. the Senate, so that it will hopefully to note that this is the same level Mr. Speaker, today we have the op- soon be sent to the President for his Democrats used in the original law en- portunity to come together and ad- signature. Only then will small busi- acted last March. vance a bill that is a win for small nesses and families have certainty that For those earning less than 400 per- business, a win for families, and a win they will not be buried under an ava- cent of poverty, the level of repayment for taxpayers across America. Cast a lanche of tax paperwork. of those overpayments is also in- ‘‘yes’’ vote for H.R. 4 and give them In 2010, as one of many ways to fi- creased. This is similar to the path that win. nance a trillion dollar health care law, taken by Democrats in December when SUPPORTERS OF 1099 REPEAL (AS OF 3/2/11) they adjusted the repayment amounts tax information reporting rules were [COMMITTEE ON WAYS AND MEANS] expanded. These new rules require busi- as a way to finance the so-called ‘‘doc nesses to issue a form 1099 for any pay- fix.’’ Aeronautical Repair Station Association; Now, I noticed yesterday that there Agricultural Retailers Association; Air Con- ments to corporations rather than just ditioning Contractors of America; Alabama individuals, and for any payments for was a lot of huffing and puffing on the Nursery & Landscape Association; Alliance property rather than just services or floor about alleged tax increases in for Affordable Services; Alliance of Inde- investment income that exceeds $600 H.R. 4. I want to be sure to clear up pendent Store Owners and Professionals; over the course of a year. any confusion on this point. American Association for Laboratory Ac- This previously little-known provi- The Joint Committee on Taxation creditation; American Bakers Association; sion quickly became an item of great says in its score that in addition to a American Bankers Association; American concern to small business employers $20 billion spending cut, there is a $5 Beekeeping Federation; American Council of across the country. The National Fed- billion increase in revenue to the gov- Engineering Companies; American Council of ernment from this one provision. But Independent Laboratories; American Farm eration of Independent Business, whose Bureau Federation ®; Americans for Pros- 350,000 members support H.R. 4, said that doesn’t mean people are nec- perity; American Foundry Society; Amer- this newly enacted reporting require- essarily paying more in taxes. Now, ican Hotel & Lodging Association; American ment would have a direct negative im- how is that possible? Simple. Accord- Institute of Architects; American Institute pact on small business. ing to the nonpartisan Joint Com- of Certified Public Accountants;

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Rental Association; American Road & Trans- Campgrounds; National Association of State Textile Rental Services Association of portation Builders Association; American Departments of Agriculture; National Asso- America; The National Grange of the Order Sheep Industry Association; American Soci- ciation of Theatre Owners; National Associa- of Patrons of Husbandry; Tire Industry Asso- ety of Association Executives; American So- tion of Wheat Growers; National Association ciation; Toy Industry Association, Inc.; ciety of Interior Designers; American Soy- of Wholesaler-Distributors; National Barley Turfgrass Producers International; U.S. bean Association; American Subcontractors Growers Association; National Cattlemen’s Apple Association; U.S. Canola Association; Association, Inc.; American Sugar Alliance; Beef Association; National Chicken Council; U.S. Chamber of Commerce; United Egg Pro- American Supply Association; American National Christmas Tree Association; Na- ducers; United Fresh Produce Association; Veterinary Distributors Association; Amer- tional Club Association; National Commu- United Producers, Inc.; United States Dry ican Veterinary Medical Association; Ameri- nity Pharmacists Association. Bean Council; USA Dry Pea & Lentil Coun- cans for Tax Reform; AMT—The Association National Corn Growers Association; Na- cil; USA Rice Federation; Utah Nursery & For Manufacturing Technology; Arizona tional Cotton Council; National Council of Landscape Association; Virginia Christmas Nursery Association; Assisted Living Federa- Agricultural Employers; National Council of Tree Growers Association; Virginia Green In- tion of America; Associated Builders and Farmer Cooperatives; National Electrical dustry Council; Virginia Nursery & Land- Contractors. Contractors Association; National Electrical scape Association; Virginia Technology Alli- Associated Equipment Distributors; Asso- Manufacturers Representatives Association; ance; Washington State Nursery & Land- ciated General Contractors of America; Asso- National Federation of Independent Busi- scape Association; Western Growers Associa- ciated Landscape Contractors of Colorado; ness; National Home Furnishings Associa- tion; Western Peanut Growers Association; Association of Free Community Papers; As- tion; National Lumber and Building Material Western United Dairymen; Window and Door sociation of Ship Brokers & Agents; Associa- Dealers Association; National Milk Pro- Manufacturers Association; Wisconsin Com- tion of Small Business Development Centers; ducers Federation; National Multi Housing munity Papers; Wood Machinery Manufac- Automotive Aftermarket Industry Associa- Council; National Newspaper Association; turers of America. tion; Automotive Recyclers Association; National Office Products Alliance; National Bowling Proprietors Association of America; Restaurant Association; National Retail I reserve the balance of my time. California Association of Nurseries and Gar- Federation; National Roofing Contractors Mr. LEVIN. I yield myself as much den Centers; California Landscape Contrac- Association; National Small Business Asso- time as I shall consume. tors Association; Commercial Photographers ciation; National Small Business Network; Let’s be clear what the issue is International; Community Papers of Florida; National Sunflower Association; National today. The issue is not repeal of this Community Papers of Michigan; Community Taxpayers Union. provision, of 1099. We on this side not Papers of Ohio and West Virginia; Com- National Tooling and Machining Associa- only favor repeal, but all of us who tion; National Utility Contractors Associa- puting Technology Industry Association; were here last session voted for it. We Connecticut Nursery & Landscape Associa- tion; Nationwide Insurance Independent Con- tion; Council of Smaller Enterprises; Direct tractors Association; Nebraska Nursery and voted to repeal it. It failed because Selling Association; Door and Hardware In- Landscape Association; New Mexico Family only two people on the minority, then stitute. Business Alliance; New Mexico Nursery & minority side, voted for the bill. They Electronic Security Association; Elec- Landscape Association; New York State didn’t like the pay-for. tronics Representatives Association (ERA); Nursery and Landscape Association; North Mr. CAMP mentions the NFIB. They Farm Credit Council; Financial Services In- American Die Casting Association; North supported our effort last year to repeal stitute, Inc.; Florida Nursery, Growers & Carolina Green Industry Council; North 1099. Landscape Association; Free Community Pa- Carolina Nursery and Landscape Associa- So, again, the issue is not repeal. We pers of New York; Georgia Green Industry tion; Northeastern Retail Lumber Associa- Association; Hampton Roads Technology tion; Northwest Dairy Association; NPES have made that clear in the past, while Council; Healthcare Distribution Manage- The Association for Suppliers of Printing, the effort to repeal was blocked on the ment Association; Hearth, Patio & Barbecue Publishing & Converting Technologies; Republican side last session. The rea- Association; Idaho Nursery & Landscape As- OFA—An Association of Floriculture Profes- son they did not vote ‘‘yes,’’ they said, sociation; Illinois Green Industry Associa- sionals; Office Furniture Dealers Alliance; was because they did not like the pay- tion; Illinois Landscape Contractors Associa- Ohio Nursery and Landscape Association; Or- for. tion (ILCA); Illinois Technology Association egon Association of Nurseries; Oregon Nurs- The pay-for closed tax loopholes, (ITA); Independent Community Bankers of ery Association; Outdoor Power Equipment closed tax loopholes, and they stood up America; Independent Electrical Contrac- Institute; Pennsylvania Landscape and Nurs- and said, no, we can’t vote for the bill tors, Inc.; Independent Office Products & ery Association. Furniture Dealers Association; Indiana Nurs- Pet Industry Distributors Association; Pe- because of that. Ironically, most of the ery and Landscape Association; Indoor Tan- troleum Marketers Association of America; loopholes closed in that effort have ning Association; Industrial Supply Associa- Plumbing-Heating-Cooling Contractors Asso- now become law. So that effort last tion. ciation; Precision Machined Products Asso- year to block repeal essentially was to Industry Council for Tangible Assets; ciation; Precision Metalforming Association; block the loophole effort that has now International Association of Refrigerated Printing Industries of America; Professional become the law of this land. That Warehouses; International Foodservice Dis- Golfers Association of America; Professional should be clear. The issue is not repeal. tributors Association; International Fran- Landscape Network; Professional Photog- chise Association; International Housewares raphers of America; Promotional Products The issue is how you pay for that re- Association; International Sleep Products Association International; Public Lands peal. Association; Kentucky Nursery and Land- Council; S Corp Association; Safety Equip- The Senate has now voted to repeal scape Association; Louisiana Nursery and ment Distributors Association; Saturation 1099 and apparently the now majority Landscape Association; Maine Landscape Mailers Coalition; SBE Council; Secondary does not like the pay-for in the Senate and Nursery Association; Manufacturers’ Materials and Recycled Textiles Association; bill. Agents Association for the Foodservice In- Self-Insurance Institute of America (SIIA); What does this bill provide? Well, in dustry; Manufacturers’ Agents National As- Service Station Dealers of America and Al- very simple terms, in clear terms, in sociation; Manufacturing Jewelers and Sup- lied Trades; SIGMA, the Society for Inde- unmistakable terms, the pay-for is an pliers of America; Maryland Nursery and pendent Gasoline Marketers of America; Landscape Association; Massachusetts Nurs- Small Business Council of America. increase on middle-income families. It ery & Landscape Association, Inc.; Michigan Small Business Legislative Council; SMC increases how much they will have to Nursery and Landscape Association; Mid-At- Business Councils; Society of American Flo- pay to the IRS if their income in- lantic Community Papers Association; Mid- rists; Society of Independent Gasoline Mar- creases over what was projected when west Free Community Papers; Minnesota keters of America; Society of Sport & Event they would have obtained health insur- Nursery & Landscape Association; Motor & Photographers; South Carolina Nursery & ance. Equipment Manufacturers Association; Landscape Association; Southeastern Adver- Let me be very clear, the people were NAMM, National Association of Music Mer- tising Publishers Association; Southeast playing by the rules once the law be- chants. Dairy Farmers Association; Southeast Milk, National Apartment Association; National Inc.; Specialty Equipment Market Associa- came effective. It wasn’t that they Association for Printing Leadership; Na- tion; Specialty Tools & Fasteners Distribu- were ineligible. They were eligible, pe- tional Association for the Self-Employed; tors Association; SPI: The Plastics Industry riod. So no one should say they were National Association of Federal Credit Trade Association; Start Over! Coalition; not eligible, that somehow they misled,

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Mostly, it will What this bill would do would be to paid for it by eliminating loopholes in be on families with incomes between provide an unacceptable offset, one the Tax Code that reward those export- $80,000 and $110,000. These are esti- that would burden hundreds of thou- ing U.S. jobs overseas. And, the Senate mates. sands of middle income taxpayers in has offered an alternative path as well. It can well be that a small increase our country. We should not do that, pe- Last month, they overwhelmingly in income beyond what was anticipated riod. passed a bipartisan repeal of the 1099 can lead to an increase by as much as I reserve the balance of my time. reporting requirement, which did not $12,000. That’s the amount that could Mr. CAMP. I yield 2 minutes to the include a tax increase on middle class be required in a check from the tax- gentlewoman from Washington State workers. But my Republican colleagues in the payer to the IRS, and Joint Tax (Mrs. MCMORRIS RODGERS). majority here in the House, who have projects that the average increase will Mrs. MCMORRIS RODGERS. Thank continually preached lower taxes, less be about $3,000. you, Mr. Chairman. regulation and fiscal discipline, have Well, it’s been said, it was said in our I rise in strong support of H.R. 4, the refused either of these alternative ap- committee and then before the Rules Small Business Paperwork Reduction proaches. Instead, my Republican col- Committee yesterday, that it’s not a Mandate Elimination Act of 2011. leagues are forcing a vote today on tax increase. So let me be clear by There’s not a single issue that I hear more about from Washington State H.R. 4, a measure that will impose a $25 reading the language that’s in the bill: billion new tax on middle class fami- If the advance payments to a tax- businesses than the 1099 requirement that made its way into last year’s lies. Yes, you heard that right. It is payer exceed the credit allowed by this only 59 days since my Republican col- section, the tax imposed by this chap- health care law. Not only is this provi- sion an administrative nightmare for leagues have assumed majority control ter for the taxable year shall be in- of the House of Representatives, and creased. employers, it has the potential to dev- astate small businesses. In fact, NFIB they’re already breaking their cam- It is in clear simple English. So let paign pledge of no new taxes, a pledge estimates that the average business no one stand up here and say it’s not a that 234 of 241 sitting Republican Mem- will have to submit at least 95 forms tax increase when it is. bers of the House signed. Let me also, if I might, read from the under the new requirement, a costly in- And, no, Republicans are not taxing Statement of Administration Policy crease from the current handful that’s the wealthiest 1 percent to pay for this that was issued yesterday. required today. small business relief bill. They are Even tax consultants have said this ‘‘Specifically, H.R. 4 would result in raising taxes on middle class workers, tax increases on certain middle class 1099 is more onerous than any tax that like firefighters, police officers, nurses families that incur unexpected tax li- the IRS could collect from small busi- and teachers, the very American fami- abilities, in many cases totaling thou- nesses. At a time when our economy is lies who work day in and day out to sands of dollars, notwithstanding that struggling, jobs are scarce and unem- make their financial ends meet, the they followed the rules.’’ ployment continues to hover near 10 very American families under attack I want to read it again. percent, the last thing we should do is today in Wisconsin, in Indiana, in Ohio, ‘‘Specifically, H.R. 4 would result in make it more difficult on our employ- and across the Midwest. tax increases on certain middle class ers, particularly the small businesses Now, the Republicans will not admit families that incur unexpected tax li- that make up the backbone of our that embedded in H.R. 4 is a tax in- abilities, in many cases totaling thou- economy and create most of the jobs in crease on the middle class. But the sands of dollars, notwithstanding that America. facts are the facts. The Joint Com- they followed the rules.’’ The 1099 is just one in a number of mittee on Taxation says the Repub- Now, it was said yesterday at the policies that have created a climate of lican bill is a tax increase, citing how Rules Committee that this is not a tax fear and uncertainty for the private it will raise $25 billion in new revenue. increase because it would become effec- sector. Businesses don’t know what That is congressional-speak for a tax tive at a later date, 2014, when the sub- regulatory hurdles they will have to increase. Even Grover Norquist, the au- sidies under the health reform bill be- jump through or the increased costs thor of the ‘‘Taxpayer Protection come effective. they will incur in the short or long Pledge,’’ has said, ‘‘Americans for Tax term. We need to give them certainty. b 1040 Reform has always followed Committee We need to have them start expanding on Joint Taxation methodology.’’ Well, if you use that logic, we could, and grow their businesses again. And a Yet, still my Republican friends deny this year, increase taxes for everybody first good step is the repeal of the 1099 and deny and deny. But, my friends, by, say, 5 percent, and that would not requirement. read my lips—Republicans are raising be a tax increase because it would be I urge support. taxes. Just look at the contents of the for a later year. Mr. LEVIN. I yield such time as he bill. Under the Democratic health re- In a word, if this bill would become may consume to someone who has been form law, an American family of four law, it would mean a tax increase for leading the effort to repeal 1099 in a re- earning $88,000 a year is obligated to hundreds of thousands of middle in- sponsible way for the middle-income pay no more than 9.5 percent of their come taxpayers. families of America, the gentleman income on health care premium costs. Also, according to Joint Tax, it from New York (Mr. CROWLEY). In this example, that is $8,360 that would have this effect, that about Mr. CROWLEY. I thank the gen- comes out of their pocket on a typical 266,000 people would not be covered tleman from Michigan (Mr. LEVIN) for family policy valued at $13,000. So the with health insurance because of the yielding me this time. family would pay, out of their pocket, provisions in this bill. Mr. Speaker, I rise in strong opposi- $8,360 in annual premiums for their So, in a few words, what this bill tion to this bill not because I oppose health care coverage, and the Federal would do would be to saddle middle in- the repealing of the 1099 reporting re- Government would provide a tax cred- come taxpayers in future years, pure quirements. I do. I have a record of it—not a subsidy, not a subsidy, a tax and simple. What we should do is to go supporting 1099 repeal and relieving credit—valued at $4,640 to cover the back and find a responsible way to pay America’s small businesses from oner- rest. These are not subsidies, but tax for the repeal of 1099. ous paperwork and onerous regula- credits to working people. They work And I close by the following para- tions. What I’m opposed to is paying exactly like the child tax credit or the graph from the Statement of Adminis- for this small business tax bill by in- tax credit to make college more afford- tration Policy, ‘‘The administration creasing taxes on working middle class able.

VerDate Mar 15 2010 01:13 Mar 04, 2011 Jkt 099060 PO 00000 Frm 00006 Fmt 7634 Sfmt 0634 E:\CR\FM\K03MR7.009 H03MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE March 3, 2011 CONGRESSIONAL RECORD — HOUSE H1533 How many of all of our constituents AMERICANS FOR TAX REFORM, by cutting wasteful government spend- use those tax credits? Do they believe Washington, DC, February 24, 2011. ing. The Democrats’ health law pro- it is welfare, a form of welfare? I don’t Hon. DAVE CAMP, vides subsidies for low-income people think so. They understand the dif- House of Representatives, Committee on Ways to buy health insurance; but if their in- and Means, Washington, DC. come goes up and they don’t need help ference between a subsidy and a tax DEAR CHAIRMAN CAMP: I write today to re- credit. These are not subsidies for the iterate the support of Americans for Tax Re- any more, they still get to keep a large middle class. They are tax credits for form for H.R. 705, the ‘‘Comprehensive 1099 portion of the subsidy. Getting rid of the middle class. These are tax relief Taxpayer Protection and Repayment of Ex- excess subsidies is not a tax increase. measures for the middle class. change Subsidy Overpayments Act of 2011.’’ I It’s simply being responsible with the The Affordable Care Act also ensures also wish to clarify that H.R. 705 is a net tax taxpayers’ money. that the Federal funding going towards cut, and is therefore not a violation of the Mr. Speaker, the American people Taxpayer Protection Pledge. have told us they want two things: a family’s health premium is paid di- Two bills in the last Congress (one of rectly to the insurance carrier, to the more jobs and less spending. The bill which was Obamacare) greatly increased before us advances both of these goals, insurance company, not to the family. ‘‘1099–MISC’’ information reporting for small In short, the family receiving this tax employers, and introduced this reporting for and it deserves the support of every credit will never, ever personally touch the first time to families renting out real Member of this House. that money, not a single dime do they property. These requirements are unneces- Mr. LEVIN. I yield myself such time feel. It never transfers through them. sary, onerous, and would lead to major com- as I may consume. pliance issues—as the IRS itself admits. H.R. There has been a reference here to 705 repeals these two provisions, which is a taxpayers who did not honestly report b 1050 victory for taxpayers. their income. I must say that’s an However, under the Republican bill, The official score of H.R. 705 from the egregious misstatement. The way this H.R. 4, if that very same family that Joint Committee on Taxation (JCX–14–11) works, or will work, is people will re- shows that this bill is a net tax cut. By re- port their income honestly, and they earns $88,000, the breadwinner of the pealing the 1099–MISC provisions, taxes are family is called into the boss’s office cut by a gross amount of $24.7 billion from do so based on their taxable income of and the boss says: You know what, 2011–2021. By requiring erroneously-obtained a particular year. you’re on your track to management. Obamacare exchange credit advances to be The problem with this bill is if the You’re doing such a great job, we’re paid back by more recipients, JCT scores a income often unexpectedly goes up in a going to give you a $250 bonus. Take dual effect from the bill. Gross taxes would subsequent year, how much will the the family out to dinner. It’s the holi- increase by $5 billion, and spending (‘‘outlay taxpayer be required to pay to the IRS. day season. effects,’’ as shown in footnote 2) would be re- That’s what the issue is. And as Mr. duced by $19.9 billion. CROWLEY said, there are other pro- And you’re overjoyed. You go back to Thus, the gross tax cut effects of repealing your family and say, I am management grams where people report their in- the 1099–MISC reporting requirements are come. They report it honestly, and material. I got a $250 bonus. I’m taking ‘‘paid for’’ by a small gross tax increase and everybody out to dinner tonight. a large spending cut. Overall, the bill is a net then there is a change and the question Well, here’s the rub: you would go tax cut of $19.7 billion from 2011–2021. is whether they should have to later from the 398 percentile of the Federal Because no bill which is a net tax cut can pay some income tax to the IRS and, if poverty level to the 401 percentile of possibly be in violation of the Taxpayer Pro- so, how much. tection Pledge, the latter simply does not What this bill does in its present the poverty level. When that happens, apply in this matter. Americans for Tax Re- form is to recreate a ‘‘cliff’’ which we you would then owe the Federal Gov- form has always followed JCT scoring meth- smoothed out in previous legislation, ernment for that $250. In April of the odology in this area, including when JCT and the cliff is 400 percent of poverty. next year the Federal Government disaggregates between spending and revenue And if unexpectedly you go over that effects of tax legislation. Spending cuts would say: Not so fast, you owe us amount in a subsequent year, essen- $4,640 to make up for your having should never be confused with tax increases, and JCT does a good job pointing out when tially what this provision would say is accessed those tax credits. that the middle-income taxpayer would That’s right, they would have to pay spending policy is present in tax bills. Those trying to call this bill a net tax hike are sim- have to pay far, far more in taxes in back every single dime that went di- ply seeking to mislead the public, or cannot that subsequent year. And the burden rectly to that health insurer, to that accurately read a JCT score. would essentially be on middle-income health insurance company when a dime I encourage all Members of Congress to taxpayers. That’s undeniable. It would never crossed their fingers. Not a sin- support this tax cut/spending cut bill when it be on income from people who are hon- gle dime crossed their fingers. is considered by the full House. est, who are middle-income taxpayers. Say it ain’t so, Joe—that’s what fam- Sincerely, So I hope no one will use the term GROVER G. NORQUIST. ilies back home in my district are say- ‘‘ineligible’’ or use the term ‘‘dis- ing. But I can’t; it’s true. Republicans I yield 2 minutes to the gentleman honest.’’ That’s selling short the people are raising taxes. from California (Mr. HERGER), a mem- of this country, the middle-income tax- The 1099 provisions should be re- ber of the Ways and Means Committee. payers. pealed. I agree with that, but not on Mr. HERGER. Mr. Speaker, I rise in And, indeed, the effort of 1099 was to the backs of middle class workers and strong support of H.R. 4. make sure that smaller businesses and middle class Americans. Coming from a small business back- others reported accurately their in- Mr. CAMP. I yield myself such time ground myself, I know personally the come. That was its purpose. Now, it is as I may consume. paperwork burden of misguided govern- clear that the way it was devised cre- I would just like to say that the ex- ment regulations imposed on our Na- ated all kinds of problems in terms of ample the gentleman from New York tion’s entrepreneurs and job creators. management of the small business, and cited, that if the family or individual If the expanded 1099 reporting require- so we moved to repeal it. But it is iron- honestly reported their income without ment in the Democrats’ health care ic that if essentially 1099 is now used this change that we are proposing law takes effect, it will be one of the by repealing it, when the effort was to today, they would still have to repay most far-reaching and burdensome un- have people honestly report their in- the entire amount of the subsidy to the funded mandates ever created. Small come, it would essentially penalize government. businesses will be required to fill out people, middle-income taxpayers, who I submit for the RECORD a letter from hundreds, or even thousands, of these honestly reported their income and be- Americans for Tax Reform that says forms every year. Yet the revenue sup- came eligible for a tax credit. this legislation is not a tax increase posedly raised by this reporting Let me just in that respect read from and is not a violation of the taxpayer amounts to less than 1 percent of the Families USA: ‘‘Unfortunately, H.R. 4 protection pledge. estimated annual tax gap. proposes paying for the repeal of the N.B. The following letter applies in full to This 1099 rule is devastating to small 1099 reporting requirement with a pro- House consideration of H.R. 4, ‘‘The Small businesses, and it must be repealed vision that would disproportionately Business Paperwork Mandate Elimination now. H.R. 4 addresses the budgetary harm middle class Americans. The Af- Act of 2011.’’—RLE, 03–02–2011 costs of repealing the 1099 requirement fordable Care Act protects individuals

VerDate Mar 15 2010 01:13 Mar 04, 2011 Jkt 099060 PO 00000 Frm 00007 Fmt 7634 Sfmt 0634 E:\CR\FM\K03MR7.012 H03MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE H1534 CONGRESSIONAL RECORD — HOUSE March 3, 2011 and families who run the risk of having Health care insurance for their fami- thing to do, who believe that people income that may bump them up over lies, health care insurance, which is aren’t entitled to something that they the eligibility limits for premium cred- something we all would want to pro- earned under law and that people who its by capping the tax penalty they will vide for our families. get paid something don’t believe it owe if the monthly premium credit re- What is it about this example? When should be paid back. ceived during the year exceeds the they get the $250 bonus and they get My citizens and my constituents: amount of credit due based on unex- pushed into the 400 percentile of pov- Greg from Independence, Kentucky, pected changes in income or family erty, that they now have to pay back wrote: ‘‘We don’t need this new 1099 re- status. This legislation would elimi- their $4,460, what is it about my state- quirement for small business. Get out nate the safe harbor for middle-income ment that’s wrong? I haven’t heard of the way so we can prosper.’’ That families and would increase the cap for yet—because it’s not wrong, because means creating taxpayers, not raising lower-income families by $500.’’ that family would be exposed to a mas- taxes. And it closes, and again I’m quoting: sive tax increase, one that they cannot Eric from Cynthiana told me: ‘‘Small ‘‘Although we recognize that Congress afford. businesses are already being crushed by needs to repeal the 1099 reporting re- So don’t describe these people as dis- overreaching government mandates quirement so that it is no longer a dis- honest. Don’t describe the middle class and undue burdens. I’m personally sick traction from the way the Affordable worker as trying to scam the system. of this foolishness.’’ Joann from DeMossville wrote in to Care Act benefits millions of small Not everyone tries to do that. By the tell me how she would personally be af- businesses, funds intended to help way, you might find that in the lowest fected. She stated: ‘‘My husband is a America’s middle class families should poverty level, and I would dare say the sole proprietorship, and I currently not be used as a piggy bank to mend top 1 percent try to scam the system, I complete and submit 1099s for his sub- this legislative problem. We urge you would probably think, all the time. So contractors. So, if we spend $600 at to find an alternative and more respon- let’s not disparage anymore the middle Home Depot, I now need to send them class that we already have by pre- sible offset for this legislation that a 1099? Sounds like a good use of my senting this bill this morning. does not increase taxes on America’s time and IRS resources.’’ Mr. CAMP. I yield 21⁄2 minutes to a hardworking middle class families.’’ Tom in Burlington may have distinguished member from the Ways Undeniably, that is what this legisla- summed up the requirement the best and Means Committee, the gentleman tion would do. It is middle class fami- when he simply called it ‘‘a nightmare from Kentucky (Mr. DAVIS). lies who honestly reported their in- for business.’’ come, period. Mr. DAVIS of Kentucky. Mr. Speak- Mr. Speaker, we need small busi- er, I would just like to point out the b 1100 nesses to focus on what they do best— louder one yells and the more one says to innovate, grow and hire. This re- There is a fraud provision in the act, it, as I told my children when they porting requirement needs to be re- which is a very stringent one, that cov- were little, doesn’t make it true or cor- moved now. It’s burdensome, and it’s ers the case of anybody who is dis- rect. going to drive up costs and cost us honest; but what you’re doing is penal- I think that we need to get down to jobs. If allowed to go into effect, it will izing middle-income families who were the facts in this matter. Saying that slow job growth and will lead to higher honest, honest, honest. paying back an overpayment is a tax prices for consumers. Let our job cre- I yield such time as he may consume increase is dissembling at best. It is ators create jobs and focus on that. to the gentleman from New York (Mr. the return of money that was not enti- I urge support for H.R. 4. CROWLEY). tled by a particular individual. Mr. LEVIN. I yield such time as he Mr. CROWLEY. Thank you, Mr. Democrats were for this before they may consume to the gentleman from LEVIN. were against it. To say it’s a tax in- New York (Mr. CROWLEY). I am a bit disturbed as well about the crease is simply wrong. Democrats cre- Mr. CROWLEY. I thank the gen- description of the individuals we’re ated this mess. Democrats made the tleman for yielding to me. talking about here, as though everyone IRS, of all organizations, the arbiter of I wonder if my friend from Kentucky is trying to scam the system. health care. I mean I think we need to heard from his middle class taxpayers. I would just point out, in the bill get down to the truth here and not I know he’s heard from the small busi- H.R. 4994, which had bipartisan support make the mistake of—since we’re in- ness owners. We’ve all heard from last year—with every Republican but curring issues of values and honor and them. But has he heard from the mid- one—we passed it to eliminate the cliff faith here, Isaiah the prophet made the dle class? When they get imposed this and to eliminate the possibility of a comment that beware of those who call tax upon them, have they said, ‘‘Don’t massive increase in taxes on the mid- good ‘‘evil’’ and evil ‘‘good’’ or sweet put this tax on me’’? No, because, quite dle class. So we have already addressed ‘‘sour’’ or sour ‘‘sweet.’’ There is a con- frankly, they don’t know what’s hap- this. What your bill today will do is sequence that comes with that, and the pening. They wouldn’t dream that you put that back in place. American people are entitled to the would do this to them. They wouldn’t I would just ask my colleague Mr. truth. dream that somehow you might pos- CAMP: Democrats increase taxes. Democrats sibly inflict and impose upon them a What is it about the example I gave increase costs. Democrats increase $4,460 tax. that’s wrong? What is it about the ex- complexity of government. My friends If your constituents earning $88,000 ample of a family of four, earning on the other side of the aisle, frankly, go over by one penny—one cent—over $88,000 a year? Based on their prior in- misrepresented the facts of this bill at the 400 percentile of poverty—one come taxes, they’re eligible for the tax best or are completely ignorant of the penny—they have to pay back $4,460, credits in the next year, assuming as process they set in motion unilater- which they never ever physically they do, because they live a pretty dull ally. Indeed, to call this a tax increase touched, which they never received. It life, a pretty hard life, trying to main- reminds me of the health care debate went to the insurance company. The tain their home, get their kids a qual- last year when we were told we just insurance companies get taken care of. ity education. Probably, at this point, had to read the bill to find out what They get their money. They’re fine. By maybe one of their kids is in college al- was in it. one penny over the Federal poverty ready; and by the way, they’re prob- I don’t think you read the bill under level, your middle class families have ably accessing the Child Tax Credit, so any circumstances. to pay back $4,460. Does that sound fair they’re used to taking tax credits. Mr. Speaker, I rise today in support to you? Now this is one other additional tax of this Comprehensive 1099 Taxpayer Now, maybe for one penny over, they credit that they can avail themselves Protection and Repayment of Ex- have to give a little something back. of—to do what? Not to get the $4,460 change Subsidy Overpayments Act of Maybe for every dollar over, they’ll and take it and go out and buy a car, 2011. I want to read some correspond- have to give a little something back. not to get the $4,460 to go on vacation ence from the middle class families in But to pay back $4,460 so they can pro- or to scam somehow—but to buy what? my district who think this is the right vide their families with health care? I’d

VerDate Mar 15 2010 01:13 Mar 04, 2011 Jkt 099060 PO 00000 Frm 00008 Fmt 7634 Sfmt 0634 E:\CR\FM\K03MR7.014 H03MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE March 3, 2011 CONGRESSIONAL RECORD — HOUSE H1535 say to the boss, Do me a favor, don’t family that you don’t deserve, you’re discourage work and they’re not going give me the penny bonus. Don’t give going to have to give it back. to try to earn as much income because me the $250 bonus. Don’t reward hard That’s what this bill does. It takes a they don’t want to go over that 400 per- work. Don’t reward me for doing good huge burden off our small businesses cent level, or they’re not going to par- work because if you give me the bonus they never should have had but our ticipate in a health insurance exchange I’m going to have to pay $4,460. Democrat friends put on them, and to begin with. We’ve got a score on Does that make any sense to you? then we’re going to ask people to repay that as well: that over 266,000 families What about making pay work? What money they should never have got that will choose not to participate in a about asking Americans to do their our Democrat friends allowed them to health insurance exchange for fear of jobs, to do them well; and if you do it get. This actually is a bipartisan bill. this hidden Republican tax trap that well, you’ll get a bonus, and you’ll get At the end of the day, watch the vote. we have before us today. ahead, and your families will be taken You’ll see so many people in this Con- And what’s ironic about this is this care of? gress saying it’s time to fix this. We’re insurance exchange that’s part of the Under this bill, this is a nightmare going to fix this mess today. Affordable Care Act is a bill that I and for the middle class families—a night- Mr. LEVIN. Mr. Speaker, before I others have worked on for years in a mare—because they’re not going to be yield to the gentleman from Wisconsin, bipartisan fashion, called the SHOP able to pay that. It totally subverts the I just want to say three quick things. Act. Republicans were in favor of cre- intention of what we tried to do in the It is such a misstatement for some- ating these health insurance ex- first place, and that is to provide one to come here and say ‘‘even if they changes, coupled with tax credits, so health care to the middle class. did not qualify.’’ That is not correct. that small businesses, family farmers, Mr. CAMP. I yield myself such time They qualified. So don’t come here and individuals, finally had a place where as I may consume. say they didn’t qualify. Essentially they could go and shop for affordable I appreciate that language: to get what you’re saying is middle income health care coverage with competing back to what they tried to do in the taxpayers came and defrauded when private health plans finally competing first place. Let’s look at what they did the truth is they told the truth. And for their business for a change, so that in the first place. indeed there’s a provision relating to they had the same type of leverage Their bill, their original bill, said fraud if someone were guilty of that. It that large corporations do. This has anyone who earned more than 400 per- allows for full repayment in cases of been proven in models and pilot cent of poverty—that’s $93,800 for a fraud, and there’s a provision that im- projects throughout the Nation that family of four—would be required to poses a civil penalty up to $25,000. have shown how effective these health repay the entire amount of the ex- The last thing before I yield, I want insurance exchanges work. change subsidy. That is exactly what to make clear, last December, we fixed, What they’re doing now with this this bill does. This bill does what the Mr. CAMP, the cliff. You voted for it. It legislation, with the offset that they’re original health care legislation did. was 409–2. I don’t think you were one of proposing, hitting the middle class, is Then they raised it, and said, well, if the ‘‘2.’’ This resurrects the cliff, pure- doing things to undermine, once again, you made up to $117,000 for a family of ly and simply, and catches hundreds of the health insurance exchanges and the four, you had to repay the entire sub- thousands of taxpayers in the future, ability for small businesses and indi- sidy. They had a cliff in their bill, and middle income taxpayers. viduals to go out and obtain affordable there is a cliff now. What we are saying I now yield 5 minutes to the distin- coverage. That’s unfortunate, but it’s is we need to see that the American guished gentleman from Wisconsin consistent with the zeal on the other taxpayer is protected. (Mr. KIND), an active member of our side of doing everything they can to With that, I yield 2 minutes to a dis- committee. undermine the Affordable Care Act, re- tinguished member of the Ways and (Mr. KIND asked and was given per- gardless of who it hurts, regardless of Means Committee, the gentleman from mission to revise and extend his re- the additional tax burden. Texas (Mr. BRADY). marks.) As my friend from Michigan indi- Mr. KIND. I thank the gentleman for cated, we fixed this problem last De- b 1110 yielding. cember in a bipartisan fashion, so in- Mr. BRADY of Texas. Mr. Speaker, I Mr. Speaker, I’m sure my good friend stead of creating a cliff, which was a want to follow on with what Chairman and colleague, the previous speaker mistake in the original bill, there CAMP made such an important point of from Texas, also realizes that this would be a gradual phaseout of these here. This new national takeover of money that they will owe on this hid- tax credits; so it wouldn’t be a hidden health care is just a mess in so many den tax is something they never see to tax trap as my Republican colleagues ways. Two of them we highlight today. begin with. This is a tax credit that are calling for today. One, our Democratic friends heaped a goes directly to the private health in- But at some point we’re going to huge new pay-for burden on our small surance companies. And this bill would have to come to grips that a lot of businesses that none of them frankly be better titled the Republican Tax what’s in the Affordable Care Act is can comply with. And then they create Trap of 2014, 2015, 2016, and on and on necessary and long overdue, not least a loophole where some people in Amer- and on, because that’s exactly what’s of which, and I think this is going to be ica can get taxpayer subsidies even if going to happen. There’s this hidden the key to health care reform and its they don’t qualify for them. tax trap that’s going to affect hundreds final verdict, is the ability for us to So let’s be clear. Today we are fixing of thousands of working class, middle change the way we pay for health care two huge Democratic messes that they class families through no fault of their in this country, changing the fee for made, and we’re going to fix them be- own. service that exists in Medicare today cause our small businesses can’t take I think my colleague and friend from to a fee for value or a quality-based re- more of this burden. Many of them are New York explained very succinctly imbursement system. We can start by barely hanging on as it is today. Sec- what would happen here with the cliff. doing that with Medicare, and the tools ondly, with these huge deficits, we If you’re at 400 percent poverty level, a are in place under health care reform can’t afford more fraud and abuse in family of four at roughly $88,000 a year, to do that. This will extend then to the our government system. So we apply a and you receive a little bit of extra in- private health insurance industry. pretty simple principle: if you get Fed- come, you receive a little bit of a bonus This, too, is a bipartisan issue. Newt eral money you don’t qualify for, that might put you just over the edge, Gingrich has been talking about it; Dr. you’re going to have to repay it. Not you’re going to be hit with a $4,600 tax Bill Frist; Tommy Thompson, my everyone. If you’re moderate income or liability at the end of the year. Now former Governor and former Secretary below, we understand you don’t have they’re not going to be in a position to of HHS, has been talking about chang- that money. But if you’re making high- deal with that. So either they’re going ing the reimbursement system in er than the national average, if you’re to have to find a way to come up with health care so we reward value and making $70,000, $80,000, $90,000 a year the money to pay the Republican tax quality and outcome of care as opposed and you got a subsidy from some other that they didn’t expect, or it’s going to to the volume-based payments which is

VerDate Mar 15 2010 01:13 Mar 04, 2011 Jkt 099060 PO 00000 Frm 00009 Fmt 7634 Sfmt 0634 E:\CR\FM\K03MR7.016 H03MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE H1536 CONGRESSIONAL RECORD — HOUSE March 3, 2011 literally bankrupting our Nation quality of care for all Americans but at your so-called Affordable Care Act today. Health care costs are the largest a much better bang for the buck for the kills business, kills small business. and fastest growing expense that we American taxpayer. That’s what we What does it do? It is based on the as- have at all levels, Federal, State and should be coming together on, rather sumption that everybody cheats. Why? local level, and for businesses and fam- than discouraging people from partici- Because the 1099 form is usually uti- ilies alike. It’s one of the reasons why pating in an exchange which will cre- lized for the purpose of making sure I’ve got folks in Wisconsin at each oth- ate true competition with these private you carry out your obligation to pay er’s throats right now talking about insurance companies, which again is payroll tax. public employee benefits, and the big- long overdue, and instead of offering But what did we do in the so-called gest cost driver in State budgets today this legislation today that sets up this Affordable Care Act? We increased the are rising health care costs. Republican tax trap for middle class reach of 1099s so that when you have no So why not embrace the reforms that working families who will be surprised obligation to pay anything, you have we have in health care reform that will at the end of the year because they put to report on the person on the other lead us to a value-based reimbursement in a little bit more time and they side of the business transaction; so system, which many people on a bipar- earned a little bit more income or they that they, supposedly, are cheating, tisan basis have been talking about for got that last-minute bonus from their and therefore we have what’s known as years. We were finally able to get those employees, and then suddenly they re- the universal snitch act. tools in place under the Affordable alize, oh, my God, we’re going to owe The idea that it’s going to gain $19 Care Act. We just can’t do it overnight. $4,600 because of what they’re doing billion, in my judgment, is created out You don’t change the way you pay for here today. of whole cloth. You have to assume one-fifth of the entire U.S. economy that almost everybody cheats to get b 1120 overnight. your $19 billion. We’ve got accountable care organiza- It’s outrageous. It’s unfair. There are And here’s the game here in Wash- tions, medical homes, bundling pro- better offsets. ington, D.C.: We create a new obliga- grams to incent value-based payments. And here’s an idea. The retired CEO tion on business that’s never existed But we also have the National Acad- of Chevron just this past week said: before. We then secretly put it in a emy of Sciences, the Institute of Medi- Hey, when oil is above 70 bucks a bar- bill—virtually no one on this floor cine, doing a 2-year study right now to rel, let’s stop the subsidies, let’s stop knew it was in the bill—and then we change the fee for service under Medi- the tax breaks. score it for gaining $19 billion to the care to a fee for value system and they This is a retired CEO of a major oil- Treasury. And if I dare come to this will present an actionable plan to the producing company that’s saying that floor to repeal it, I’m obligated to administration to implement it, which this is nonsense that we’re still wast- come up with $19 billion in new taxes gives us, I think, the best hope of ing so much money, around 50 billion or some sort of a spending cut? changing the outdated and perverse in- dollars per year by subsidizing Big Oil The American people ought to under- centive system that we have in the de- when oil is above 70 bucks a barrel. stand the game that’s played. In secret, livery of health care today. It’s leading Today, it’s over $100 a barrel. That we pass something like this, which has to overutilization in health care. And would be a more appropriate offset. an unbelievably pernicious effect on studies have shown that close to one I’m going to hand off to my friend business. Now, how does it have such out of every three health care dollars, from Oregon to pick it up at that an effect? It requires every single per- or about $800 billion a year, are going point. son involved in business or trade to go to tests and procedures that don’t Mr. CAMP. Mr. Speaker, I yield 4 into accounting to make sure that work. minutes to the distinguished chairman every time they reach that threshold of The SPEAKER pro tempore. The of the House Administration Com- $600 or more with anybody they pur- time of the gentleman has expired. mittee, the gentleman from California chase something from they have to file Mr. LEVIN. I yield the gentleman 2 (Mr. DANIEL E. LUNGREN). a 1099. additional minutes. Mr. DANIEL E. LUNGREN of Cali- Here’s what someone in my district Mr. KIND. One out of every three fornia. I thank the gentleman for yield- just emailed me, a small business per- health care dollars, or $800 billion we’re ing the time. son, a woman: spending a year that we’re not getting My name happens to appear on this ‘‘I have 15 employees. As owner, I am a good bang for the buck. It’s going to bill as the original author of this bill, the HR department, the bookkeeping tests and procedures that don’t work. H.R. 4. I remember when I introduced department, the administration depart- And because of the overutilization and this last April, Members on that side of ment, and still serve my customers the overtreatment that some patients the aisle were told by their leadership while surviving this economic climate. are receiving, they’re being left worse don’t dare go on this bill to repeal this It will be a tremendous burden, both in off, rather than better off. necessary provision of the Affordable time and dollars, to send out 1099s to That’s going to be the game-changer Care Act. all my vendors—appliance manufactur- when it comes to true fiscal responsi- By the way, if it is truly an afford- ers, parts distributors, other suppliers, bility in this place. It’s something that able care act, why has Secretary utility companies.’’ everyone’s been ducking. For the last Sebelius granted over 700 waivers to It is a job-killer provision. We couple of weeks we’ve been talking companies and unions? Because it’s not brought this H.R. 4 to the floor to get about this continuing resolution that affordable. Why has virtually every rid of a job-killer provision. only deals with 12 percent of the Fed- member of my constituency who has The other reason why it is a double- eral pie. Unfortunately it goes after health insurance had an increase in edged sword on small business is, if you the most vulnerable people in our soci- their premiums as a direct result of the want to minimize the number of 1099s ety, especially our kids’ education. Yet ‘‘Affordable Care Act’’? Just a passing that you file, you will not go to your we all know where the big money lies. question because I’m asked that all the local hardware store. You will not go It’s in the health care programs, Medi- time by my constituents. to your local restaurant. You will go to care and Medicaid. It’s in defense Why did I introduce this? Because the big box store. You will go to the spending. If we don’t get serious in provision 9006 of the bill has nothing to chain restaurant. And we are killing turning the cost curve around when it do with affordable care and has every- small business on this floor. comes to health care, then we’re just thing to do with the capacity of our The SPEAKER pro tempore. The fooling ourselves with everything else friends on the other side to find inge- time of the gentleman has expired. that we’re doing with the budget. nious ways of impacting business be- Mr. CAMP. I yield the gentleman an We’ve addressed that in the Afford- cause I guess business is considered additional 30 seconds. able Care Act with programs that are bad. Well, I’ve got an answer for you Mr. DANIEL E. LUNGREN of Cali- set up now and payment reform that is today to the question of who creates fornia. So I understand the sincerity of moving forward to change how we pay jobs. This is who creates jobs: small the other side of the aisle, of those who for health care so we can improve the business. And this particular section of are concerned about the middle class.

VerDate Mar 15 2010 02:54 Mar 04, 2011 Jkt 099060 PO 00000 Frm 00010 Fmt 7634 Sfmt 0634 E:\CR\FM\K03MR7.019 H03MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE March 3, 2011 CONGRESSIONAL RECORD — HOUSE H1537 Who do you think small business is? Would the gentleman proceed to ‘‘PolitiFact editors and reporters This is the middle class in my district state the point. have chosen ‘government takeover of and virtually every district across the Mr. DANIEL E. LUNGREN of Cali- health care’ as the 2010 Lie of the Year. country. These are the people who cre- fornia. I would make a point of order They chose it as the year’s most sig- ate jobs. You will put a dagger in their that the gentleman has made a per- nificant falsehood by an overwhelming side. And now you come up and argue sonal reference to me and then fol- margin. The label ‘government take- against passing this legislation because lowed that up by saying that what I over’ has no basis in reality, but in- you are concerned about the middle said was a lie. stead reflects a political dynamic class. The SPEAKER pro tempore. Is the where conservatives label any increase You are killing the middle class with gentleman demanding that words be in government authority in health care the provision in the health care reform taken down? as a ‘takeover.’ ’’ bill, so-called. What we are trying to do Mr. DANIEL E. LUNGREN of Cali- They point out: ‘‘The law that Con- is to get rid of that. We are trying help fornia. Not at this time, Mr. Speaker. gress passed, parts of which have al- the middle class. We are trying to help But I would ask that the Speaker ad- ready gone into effect, rely largely on the job creators. We are trying to help monish Members not to question the the free market. Employers will con- the people in our districts who don’t motivation of other Members in ref- tinue to provide health insurance to have jobs. erence to any debate that is taking the majority of Americans through pri- Don’t distract the debate on this job- place. vate insurance companies. Contrary to killer piece of legislation. Give us some The SPEAKER pro tempore. The gen- the claim, more people will get private relief, which is being called for all tleman from Oregon may proceed. health insurance. The government will around the country. Mr. BLUMENAUER. . . . not seize control of hospitals or nation- Mr. LEVIN. Mr. Speaker, before I Mr. DANIEL E. LUNGREN of Cali- alize doctors. The law does not include yield to Mr. BLUMENAUER, I yield 30 fornia. Mr. Speaker, I ask that the gen- a public option. It gives tax credits to seconds to the gentleman from New tleman’s words be taken down. people who have difficulty affording in- The SPEAKER pro tempore. The gen- York (Mr. CROWLEY). surance, so they can buy their coverage Mr. CROWLEY. I appreciate the com- tleman will suspend. The gentleman from private providers. It relies on a ments of my friend from California, from Oregon will take a seat. free market with regulations, not so- and I don’t question his motivation. The Clerk will report the words. cialized medicine. We have concluded it Mr. BLUMENAUER. I ask unanimous But I would suggest that if the assump- is inaccurate to call the plan a govern- consent, Mr. Speaker, to withdraw the tion is that we believe everyone cheats, ment takeover because it relies largely previous statement. I think that’s wrong. on the existing health system of cov- The SPEAKER pro tempore. Is there What I hear from the other side—not erage provided by employers.’’ objection to the request of the gen- from the gentleman from California, Mr. Speaker, part of what we’re see- tleman from Oregon? ing here, though, is this drama that is but generally from the other side—is There was no objection. that the belief is the middle class pulled out where talking points are re- The SPEAKER pro tempore. The gen- peated in an effort to obscure the facts cheats; the middle class cheats, and tleman from Oregon may proceed. that’s why we have to impose this upon going forward. The majority knows Mr. BLUMENAUER. I appreciate the that the Democrats have attempted to them. And I would use an example of a opportunity, because I want to be very middle class business man or woman. adjust the 1099. We don’t want it in clear about what I intended, what I there. We voted for fixes. It will be That business man or woman who files thought I said and I think a review of an individual fax tax form as a small fixed between the House and the Sen- the tape would reveal. I am not calling ate. business person no longer will have to anybody a liar. file the 1099 forms, but if they make What’s killing small business is the What I intended to say, and I will ask crushing burden of health care, where $88,000 a year and they are 397 per- unanimous consent to put in the they are trying to provide for their em- centile of Federal poverty and they RECORD, is that as we have repeated ployees. What is killing small business have an unexpected increase in income, talking points about a government is that they can’t compete with big they will be subject to the $4,460 middle takeover of health care, this has been business. They have a system that has class tax hike. judged by an independent journalistic provided a downward spiral. What’s Mr. LEVIN. Mr. Speaker, I yield 5 undertaking as the political lie of the providing the driving force for the gov- minutes to the gentleman from Oregon year. ernment deficit is increasing costs of (Mr. BLUMENAUER), a member of the Mr. DANIEL E. LUNGREN of Cali- providing health care, for example, Ways and Means Committee. fornia. Will the gentleman yield? through Medicare. This used to be an Mr. BLUMENAUER. Thank you, Mr. Mr. BLUMENAUER. I yield to the area of bipartisan cooperation. LEVIN, I appreciate that. gentleman from California. The Health Care Reform Act includes It’s a little interesting when we hear Mr. DANIEL E. LUNGREN of Cali- every significant area of reducing our friends come to the floor with the fornia. All I just want to make clear in health care costs as either a pilot or a same talking points. My good friend the RECORD, I never made a reference demonstration. It points a path to- from California talks about the govern- to the government takeover of health wards saving hundreds of billions of ment takeover of health care—which of care in my speech, and the gentleman dollars. Those used to be bipartisan. course PolitiFact called the 2010 polit- was errant in making a personal ref- The SPEAKER pro tempore. The ical lie of the year. erence to what I had just said. time of the gentleman has expired. Allowing 33 million additional Amer- Mr. BLUMENAUER. I apologize if Mr. LEVIN. I yield the gentleman 2 icans to have access to—— the person who said ‘‘government take- additional minutes. POINT OF ORDER over of health care’’ was not you. It is Mr. BLUMENAUER. Those used to be Mr. DANIEL E. LUNGREN of Cali- repeated so often by my Republican bipartisan; but instead of working with fornia. Point of order, Mr. Speaker. friends, including the Speaker of the us to refine and accelerate the provi- The SPEAKER pro tempore. State House, time and time again, that some- sions, people are trying to put sand in your point. times I get confused because it is a lit- the gears. And as my friends from Mr. DANIEL E. LUNGREN of Cali- any that is used. It is in fact, and I Michigan and from New York have fornia. The gentleman made a personal would ask unanimous consent, Mr. pointed out, there are going to be reference to me, stating that I made a Speaker, to put in the RECORD the some—we hope they are unintended statement on the floor, and then called PolitiFact article. victims—but there are going to be in- that the biggest lie of the year. Is that, The SPEAKER pro tempore. Without nocent victims, people in the middle in fact, an appropriate comment to be objection, it is so ordered. class and the near middle class who made on the floor during debate? Mr. BLUMENAUER. Because those don’t have the control of billionaire The SPEAKER pro tempore. The gen- words are still echoing in the Chamber. hedge funds to control their income. tleman from California has not stated It has been said by somebody on the There are things that can happen a point of order. other side of the aisle earlier: that will adjust it up or down. There

VerDate Mar 15 2010 01:13 Mar 04, 2011 Jkt 099060 PO 00000 Frm 00011 Fmt 7634 Sfmt 0634 E:\CR\FM\K03MR7.021 H03MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE H1538 CONGRESSIONAL RECORD — HOUSE March 3, 2011 will be a significant penalty. We have Said Jonathan Oberlander, a professor of vania, has debunked it several times, calling worked to fix that cliff. We’ve approved health policy at the University of North it one of the ‘‘whoppers’’ about health care it. We don’t need to reinstate the cliff, Carolina-Chapel Hill: ‘‘The label ‘govern- and saying the reform plan is neither ‘‘gov- ernment-run’’ nor a ‘‘government takeover.’’ the tax on honest mistakes. As has ment takeover’ has no basis in reality, but instead reflects a political dynamic where We asked incoming House Speaker John been pointed out, there are provisions conservatives label any increase in govern- Boehner’s office why Republican leaders re- to deal with fraud. ment authority in health care as a ‘take- peat the phrase when it has repeatedly been This is part of the drip, drip, drip to over.’ ’’ shown to be incorrect. Michael Steel, Boehner’s spokesman, replied, ‘‘We believe try and undermine health care reform, AN INACCURATE CLAIM that the job-killing ObamaCare law will re- not accelerate it. It’s a part of mis- ‘‘Government takeover’’ conjures a Euro- representation politically that the sult in a government takeover of health pean approach where the government owns care. That’s why we have pledged to repeal American public frankly doesn’t de- the hospitals and the doctors are public em- it, and replace it with common-sense reforms serve. It’s a lost opportunity for us to ployees. But the law Congress passed, parts that actually lower costs.’’ reduce the deficit, improve health care, of which have already gone into effect, relies Analysts say health care reform is such a and lower costs. largely on the free market: complicated topic that it often cannot be Employers will continue to provide health summarized in snappy talking points. b 1150 insurance to the majority of Americans ‘‘If you’re going to tell the truth about This is very personal to people like through private insurance companies. something as complicated as health care and me. I come from an area of the country Contrary to the claim, more people will get health care reform, you probably need at private health coverage. The law sets up ‘‘ex- least four sentences,’’ said Maggie Mahar, that provides high-quality health care changes’’ where private insurers will com- author of Money-Driven Medicine: The Real at a low cost. My people are penalized. pete to provide coverage to people who don’t Reason Health Care Costs So Much. ‘‘You Health care reform is moving to try to have it. can’t do it in four words.’’ help people like that as we overall im- The government will not seize control of Mahar said the GOP simplification dis- prove health care around the country hospitals or nationalize doctors. torted the truth about the plan. ‘‘Doctors and protect the deficit. The law does not include the public option. will not be working for the government. Hos- I am sorry for any ambiguity or mis- a government-run insurance plan that would pitals will not be owned by the government,’’ have competed with private insurers. she said. ‘‘That’s what a government take- understanding from my comments, but The law gives tax credits to people who over of health care would mean, and that’s I am frustrated when I hear the Repub- have difficulty affording insurance, so they not at all what we’re doing.’’ lican side of the aisle continue to re- can buy their coverage from private pro- HOW THE LINE WAS USED peat this political lie of the year. It viders on the exchange. But here too, the ap- If you followed the health care debate or doesn’t help the debate, it doesn’t help proach relies on a free market with regula- the midterm election—even casually—it’s us move forward, and we are going to tions, not socialized medicine. likely you heard ‘‘government takeover’’ have to move forward to solve the PolitiFact reporters have studied the 906- many times. page bill and interviewed independent health problems of this country. PolitiFact sought to count how often the care experts. We have concluded it is inac- phrase was used in 2010 but found an accu- [From PolitiFact, Dec. 16, 2010] curate to call the plan a government take- rate tally was unfeasible because it had been POLITIFACT’S LIE OF THE YEAR: ‘A over because it relies largely on the existing repeated so frequently in so many places. It GOVERNMENT TAKEOVER OF HEALTH CARE’ system of health coverage provided by em- was used hundreds of times during the de- (By Bill Adair, Angie Drobnic Holan) ployers. bate over the bill and then revived during It’s true that the law does significantly in- In the spring of 2009, a Republican strate- the fall campaign. A few numbers: crease government regulation of health in- gist settled on a brilliant and powerful at- The phrase appears more than 90 times on surers. But it is, at its heart, a system that tack line for President Barack Obama’s am- Boehner’s website, GOPLeader.gov. relies on private companies and the free bitious plan to overhaul America’s health in- It was mentioned eight times in the 48- market. page Republican campaign platform ‘‘A surance system. Frank Luntz, a consultant Republicans who maintain the Democratic Pledge to America’’ as part of their plan to famous for his phraseology, urged GOP lead- plan is a government takeover say that char- ‘‘repeal and replace the government take- ers to call it a ‘‘government takeover.’’ acterization is justified because the plan in- over of health care.’’ ‘‘Takeovers are like coups,’’ Luntz wrote creases federal regulation and will require The Republican National Committee’s in a 28-page memo. ‘‘They both lead to dic- Americans to buy health insurance. website mentions a government takeover of tators and a loss of freedom.’’ But while those provisions are real, the health care more than 200 times. The line stuck. By the time the health care majority of Americans will continue to get Conservative groups and tea party organi- bill was headed toward passage in early 2010, coverage from private insurers. And it will zations joined the chorus. It was used by Obama and congressional Democrats had bring new business for the insurance indus- FreedomWorks, the Heritage Foundation and sanded down their program, dropping the try: People who don’t currently have cov- the Cato Institute. ‘‘public option’’ concept that was derided as erage will get it, for the most part, from pri- The phrase proliferated in the media even too much government intrusion. The law vate insurance companies. after Democrats dropped the public option. passed in March, with new regulations, but Consider some analogies about strict gov- In 2010 alone, ‘‘government takeover’’ was no government-run plan. ernment regulation. The Federal Aviation mentioned 28 times in the Washington Post, But as Republicans smelled serious oppor- Administration imposes detailed rules on 77 times in Politico and 79 times on CNN. A tunity in the midterm elections, they didn’t airlines. State laws require drivers to have review of TV transcripts showed ‘‘govern- let facts get in the way of a great punchline. car insurance. Regulators tell electric utili- ment takeover’’ was primarily used as a And few in the press challenged their fre- ties what they can charge. Yet that heavy catchy sound bite, not for discussions of pol- quent assertion that under Obama, the gov- regulation is not described as a government icy details. ernment was going to take over the health In most transcripts we examined, Repub- takeover. care industry. lican leaders used the phrase without being This year, PolitiFact analyzed five claims PolitiFact editors and reporters have cho- challenged by interviewers. For example, of a ‘‘government takeover of health care.’’ sen ‘‘government takeover of health care’’ as during Boehner’s Jan. 31 appearance on Meet Three were rated Pants on Fire, two were the 2010 Lie of the Year. Uttered by dozens of the Press, Boehner said it five times. But not rated False. politicians and pundits, it played an impor- once was he challenged about it. tant role in shaping public opinion about the CAN’T DO IT IN FOUR WORDS In rare cases when the point was ques- health care plan and was a significant factor Other news organizations have also said tioned, the GOP leader would recite various in the Democrats’ shellacking in the Novem- the claim is false. regulations found in the bill and insist that ber elections. Slate said ‘‘the proposed health care re- they constituted a takeover. But such Readers of PolitiFact, the St. Petersburg form does not take over the system in any followups were rare. Times’ independent fact-checking website, sense.’’ In a New York Times economics AN EFFECTIVE PHRASE also chose it as the year’s most significant blog, Princeton University professor Uwe Politicians and officials in the health care falsehood by an overwhelming margin. Reinhardt, an expert in health care econom- industry have been warning about a ‘‘govern- (Their second-place choice was Rep. Michele ics, said, ‘‘Yes, there would be a substantial ment takeover’’ for decades. Bachmann’s claim that Obama was going to government-mandated reorganization of this The phrase became widely used in the spend $200 million a day on a trip to India, a relatively small corner of the private health early 1990s when President Bill Clinton was falsity that still sprouts.) insurance market (that serves people who trying to pass health care legislation. Then, By selecting ‘‘government takeover’’ as have been buying individual policies). But as today, Democrats tried to debunk the pop- Lie of the Year, PolitiFact is not making a that hardly constitutes a government take- ular Republican refrain. judgment on whether the health care law is over of American health care.’’ When Obama proposed his health plan in good policy. FactCheck.org, an independent fact-check- the spring of 2009, Luntz, a Republican strat- The phrase is simply not true. ing group run by the University of Pennsyl- egist famous for his research on effective

VerDate Mar 15 2010 02:54 Mar 04, 2011 Jkt 099060 PO 00000 Frm 00012 Fmt 7634 Sfmt 0634 E:\CR\FM\K03MR7.057 H03MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE March 3, 2011 CONGRESSIONAL RECORD — HOUSE H1539 phrases, met with focus groups to determine provision, a burdensome provision on contractors. This type of third-party which messages would work best for the Re- small businesses that create jobs. If we reporting is meant to ensure those con- publicans. He did not respond to calls and e- wonder why we have a high unemploy- tractors report honestly to the IRS on mails from PolitiFact asking him to discuss ment rate, it is because of provisions the income they earn. the phrase. The 28-page memo he wrote after those ses- like this. A reminder, it is estimated that sions, ‘‘The Language of Healthcare 2009,’’ This 1099 provision was bad legisla- there is up to $300 billion a year of un- provides a rare glimpse into the art of find- tion from day one. The American peo- reported income in the United States. ing words and phrases that strike a respon- ple have made it clear they want this And before we get to some of the cuts sive chord with voters. law repealed. that have been proposed in this institu- The memo begins with ‘‘The 10 Rules for The President thinks it’s bad, Demo- tion, we ought to be focusing our at- Stopping the ‘Washington Takeover’ of crats think it’s bad, Republicans think tention on how we might collect that Healthcare.’’ Rule No. 4 says people ‘‘are it’s bad, even the Senate thinks it’s unreported and underreported income deathly afraid that a government takeover will lower their quality of care—so they are bad. It has taken long enough to move that is such an important part of the extremely receptive to the anti-Washington on this. Let’s do it. Let’s get it done. underground economy in the United approach. It’s not an economic issue. It’s a Further delay is unacceptable. States. bureaucratic issue.’’ Look, if we don’t repeal this now, You would think that that oppor- The memo is about salesmanship, not sub- businesses are going to assume more tunity would avail itself based upon stance. It doesn’t address whether the lines expenses. If we repeal it later, we con- the mindless process that took place are accurate. It just says they are effective tinue to delay this. here a couple of weeks ago where we and that Republicans should use them. In- They will incur expenses that, once it began with a series of 2-minute votes deed, facing a Democratic plan that actually relied on the free market to try to bring is repealed, they wouldn’t have had to over 2 days to cut very important ini- down costs, Luntz recommended sidestepping incur from the beginning. I am already tiatives that the American people have that inconvenient fact: hearing from many, many Louisiana come to rely on. And I would suggest ‘‘The arguments against the Democrats’’ businesses right now that want to to my friends on the other side of the healthcare plan must center around politi- grow, want to hire; and they are wor- aisle that they take note of that Wall cians, bureaucrats and Washington . . . not ried about this. They are already Street Journal poll this morning as to the free market, tax incentives or competi- spending money to prepare for this. what these cuts mean and how they are tion.’’ That’s why we need to take care of it Democrats tried to combat the barrage of going down with the American people. charges about a government takeover. The now. We want to create jobs, repeal In our committee markup, there was White House and House Speaker Nancy this provision now and let’s move for- a great deal of discussion about the Pelosi repeatedly put out statements, but ward. The American people want to see burden on small businesses that this they were drowned out by a disciplined GOP action on this from this Congress, and new reporting requirement imposes, that used the phrase over and over. they want to see it now. It’s important and I think that for the most part we Democrats could never agree on their own now to do it. are all in agreement that the burden phrases and were all over the map in their Americans are growing impatient. here may well outweigh the benefit. responses, said Howard Dean, former head of Small business owners are growing im- But let’s not ignore what we have the Democratic National Committee. ‘‘It was uncoordinated. Everyone had their patient. I ask that we repeal this provi- found out about tax evasion at our own idea,’’ Dean said in an interview with sion today. Repeal it now. markup. I asked Tom Barthold from PolitiFact. Mr. LEVIN. I yield myself 15 seconds. the Joint Committee on Taxation The Democrats are atrocious at mes- The gentleman who just spoke voted about his estimate that the reporting saging,’’ he said. ‘‘They’ve gotten worse ‘‘no’’ on repeal last July, as did the requirement would raise $22 billion in since I left, not better. It’s just appalling. gentleman from California who spoke revenue. Now, Tom Barthold is not a First of all, you don’t play defense when before him. You both had a chance to Democrat; he is not a Republican. He is you’re doing messaging, you play offense. vote ‘‘no,’’ and you failed to do so. You The Republicans have learned this well.’’ an economist who likes to give unjaded Dean grudgingly admires the Republican didn’t like a pay-for that closed a tax information to those of us who then wordsmith. ‘‘Frank Luntz has it right, he loophole. implement policy. just works for the wrong side. You give very I yield 5 minutes to the gentleman I asked him how much of this was tax simple catch phrases that encapsulate the from Massachusetts (Mr. NEAL), a dis- evasion, contractors underreporting in- philosophy of the bill.’’ tinguished member of the Ways and come and how much was the penalties A RESPONSIVE CHORD Means Committee. on those innocent third parties who got By March of this year, when Obama signed Mr. NEAL. I thank Mr. LEVIN for tripped up on the rules. He told us that the bill into law, 53 percent of respondents in yielding the time. almost all of it was due to tax avoid- a Bloomberg Poll said they agreed that ‘‘the Mr. Speaker, this provision came ance, tax evasion. current proposal to overhaul health care over from the Senate. As Mr. LEVIN has So without any hearings or debate amounts to a government takeover.’’ correctly noted, Members on this side about how to best capture that $22 bil- Exit polls showed the economy was the top issue for voters in the November election, of the aisle have already cast a vote to lion, we eliminated this reporting re- but analysts said the drumbeat about the repeal this measure. The difficulty quirement and would raise taxes on ‘‘government takeover’’ during the campaign that’s in front of us today is the man- middle-income families. helped cement the advantage for the Repub- ner in which this has been presented to I want to urge my friends on the licans. all of us. other side, before we travel down this Rep. Earl Blumenauer, an Oregon Demo- Now, we are going to hear a lot of path of cutting very important initia- crat whose provision for Medicare end-of-life conflicting opinions today about the tives for the American family—and I care was distorted into the charge of ‘‘death new taxes in this bill. Like everybody can’t wait till we have the first vote in panels’’ (last year’s Lie of the Year), said the Republicans’’ success with the phrase was a else here in this Chamber, I am opposed this institution up or down on Social matter of repetition. to raising taxes on the middle class. Security to see if the rhetoric really ‘‘There was a uniformity of Republican Hardly is that a leap of faith into un- matches the reality. Then I am hopeful messaging that was disconnected from chartered waters. We all share that that if we move to the discussion and facts,’’ Blumenauer said. ‘‘The sheer dis- common belief. debate on Medicare, we will see if the cipline . . . was breathtaking.’’ But the problem with the provision rhetoric matches the reality. Mr. CAMP. Mr. Speaker, I yield 2 that’s offered today is the disguised na- But I would hope that before we minutes to a distinguished member of ture of raising taxes on the middle move on this mindless trail of these the Ways and Means Committee, the class. Let’s get to the heart of this bill. proposed cuts that have taken place gentleman from Louisiana, Dr. It repeals a new reporting requirement over the last 3 weeks, that we might BOUSTANY. on small businesses. consider what to do about the whole Mr. BOUSTANY. Mr. Speaker, the This provision expanded a type of re- notion of tax evasion. I hope that those time to act on this provision is now. porting that already goes on where on the other side of the aisle would join Why? It’s very, very simple. It’s about businesses report to the Internal Rev- me in my efforts to ferret out tax jobs. It’s about removing an onerous enue Service on large payments sent to abuse.

VerDate Mar 15 2010 01:13 Mar 04, 2011 Jkt 099060 PO 00000 Frm 00013 Fmt 7634 Sfmt 0634 E:\CR\FM\A03MR7.006 H03MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE H1540 CONGRESSIONAL RECORD — HOUSE March 3, 2011 The SPEAKER pro tempore. The stated in a letter to my office: ‘‘This is whether they were estimating their in- time of the gentleman has expired. absurd. The small business men of this come accurately. They are estimating Mr. LEVIN. I yield 1 additional country have more paperwork than this income in the beginning of the minute to the gentleman. they can get done now.’’ year, but later in the year, they may Mr. NEAL. I have been on this issue While we have disagreed about the get a raise, they may get a promotion. for a career of what to do about Amer- full repeal of the health overhaul law, They may even get a job. And then ican companies that change their ad- the administration and many of my they could be hit with a huge repay- dress so that they become a citizen of colleagues on the other side of the aisle ment penalty for a simple mistake: a Bermuda to avoid American income have recently decided they strongly promotion or a new job. taxes, while there are hundreds of agree with Republican Members in The Joint Committee on Taxation es- thousands of American soldiers over- Congress that the 1099 reporting provi- timates that this deterrent effect seas, why our VA hospitals are going to sions should be repealed. However, a would increase the number of unin- be necessary for the 31,000 that have few weeks ago, we received the Presi- sured by 266,000 people. Let’s withdraw been wounded in honorable service to dent’s budget which would only repeal this pay-for and let’s get something this country, and why, before we pro- the 1099 requirement for goods but keep more reasonable. And under these cir- pose the cuts that we have proposed, it for services—a glaring contradiction cumstances, I cannot support the bill we are not after tax evasion the way to the President’s stated strong sup- in its present form today, although I that we should be. That ought to be port for the full repeal of this harmful certainly support the changes in the something that men and women of provision. 1099 reporting rules. good will in this institution all ought So I’m pleased that the House has Mr. CAMP. I yield 2 minutes to a dis- to be able to agree upon. chosen to move forward with the full tinguished member of the Ways and Mr. CAMP. Mr. Speaker, I yield 3 repeal of this unprecedented burden on Means Committee, the gentleman from minutes to a distinguished member of small business. Furthermore, if my col- Minnesota (Mr. PAULSEN). the Ways and Means Committee, the leagues on the other side of the aisle Mr. PAULSEN. I thank the chair- man. gentleman from Nebraska (Mr. SMITH). are truly serious about reducing waste, Madam Speaker, I also rise in strong Mr. SMITH of Nebraska. Mr. Speak- fraud, and abuse in our health care sys- support of the legislation here today er, I truly believe that the best thing tem, then they, too, can support this that would repeal this burdensome 1099 measure with full voice, since it is paid that this Congress can do is focus on tax requirement contained in the new for by reducing overpayments of ex- jobs, making sure that someone might health care law. Failure to eliminate change subsidies. have access to health care through a this provision would result in vast In this economic environment, Con- job. But increasing the cost of doing amounts of new paperwork and addi- gress needs to be working to remove business certainly does not contribute tional accounting burdens for 30 mil- the barriers to job creation and finding to our effort to help create jobs. lion businesses that are still struggling ways to rein in the cost of health care, I rise in support of H.R. 4. Repealing in a very downbeat economy. the 1099 mandate would only help, and not imposing new government man- Now, while having gone virtually un- certainly in my district, family farm- dates to squeeze every dollar out of noticed in the context of the entire ers, ranchers, small businesses. small businesses. health care debate, this provision has Let me tell you briefly about a res- While we await action from the Sen- created quite a bit of concern for com- taurant owner, a small operation. ate on H.R. 2, the full repeal of this panies who are already facing increased health care overhaul, I urge my col- b 1200 regulatory compliance costs as they leagues to vote in support of H.R. 4 get ready for this new provision to He will go from four 1099s to over 200 today to fix one of the many flaws in take effect. 1099s, and that’s after spending $7,000 in the President’s health care law. Madam Speaker, almost every week I new software, Mr. Speaker. That cer- Mr. LEVIN. I yield 2 minutes to the get a chance to visit with a small busi- tainly provides opportunities for a mis- gentleman from California (Mr. WAX- ness back in Minnesota in my district; placed digit in an identification num- MAN), the ranking member of the En- and nearly every one of them has asked ber that will lead to the wrong person ergy and Commerce Committee. me in bewilderment and in complete being audited, Mr. Speaker. Mr. WAXMAN. Madam Speaker, disbelief why they would be required to And when we look at all the informa- there is widespread bipartisan agree- have to do this because of the amount tion given here, certainly it makes ment that the 1099 reporting rules need of time and the amount of energy it sense to recapture an overpayment of a revision. In fact, the agreement is so will take to comply with this new re- subsidy so that we can return to the widespread that I’m mystified why quirement. So now, if there’s a small people the opportunity to go out, cre- we’re having this debate. The Senate business owner and they want to go ate jobs and, in the end, ultimately passed a repeal of this policy earlier into a Target store and they purchase provide more health care for the Amer- this year on a bipartisan basis. The $600 worth of office supplies annually, ican people. House, last year, failed to pass a repeal they are now going to be required to Mr. LEVIN. I reserve the balance of of the provision only because of Repub- file a new 1099 form—not only with the my time. lican opposition. But now we all agree, IRS, but with the Target Corporation. Mr. CAMP. Mr. Speaker, I yield 2 let’s repeal it. It’s a waste of time, and time is money. minutes to a distinguished member of What’s the hang-up? The hang-up is We need to be thinking about how we the Ways and Means Committee, the the Republicans want to pay for this can help our Nation’s small businesses gentlewoman from Kansas (Ms. JEN- business tax cut on the backs of lower- get back on track by growing jobs and KINS). and middle-income families. This bill helping our economy move forward. Ms. JENKINS. I thank the gentleman would increase taxes by $25 billion in It’s not the way to do it by increasing for yielding. total on families earning less than more burdensome paperwork and bu- According to the President’s health $110,000. Families with incomes around reaucratic paperwork. We need to let care law, starting next year any busi- $90,000 per year could see increases in them be productive, to unleash their ness that purchases more than $600 taxes of $3,000, according to the Joint productivity, rather than filling out worth of goods or services from an- Committee on Taxation. unnecessary forms. other business is required to submit a This is a remarkable piece of legisla- Madam Speaker, I know, with the 1099 tax form to the Internal Revenue tion because it unwinds a near-unani- elimination of this onerous reporting Service. I’m a strong supporter of job mous agreement that we had last year. requirement, small businesses are now creation. However, I do not think This policy wouldn’t just increase going to be able to focus where they building more bureaucratic barriers for taxes. It would discourage enrollment should focus their resources: on grow- small business and creating additional in health plans in health exchanges. ing jobs and creating a better economy positions at the IRS is the kind of job Under the Republican proposal, peo- instead of processing additional paper- growth this country needs. As Alan ple who are eligible for tax credits work and navigating bureaucratic red Meyers, an electrician in my district, would have to think very hard as to tape.

VerDate Mar 15 2010 01:13 Mar 04, 2011 Jkt 099060 PO 00000 Frm 00014 Fmt 7634 Sfmt 0634 E:\CR\FM\K03MR7.025 H03MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE March 3, 2011 CONGRESSIONAL RECORD — HOUSE H1541 Mr. CAMP. Madam Speaker, I yield 2 because of the billions of dollars that This bill does three things: it reduces minutes to a distinguished member of would be lost by trying to get rid of it, the deficit; it protects our taxpayers the Ways and Means Committee, the we passed a law and it was rejected be- from waste; and it eases the burdens on gentleman from Nevada (Mr. HELLER). cause the majority party didn’t like small businesses who too often have to Mr. HELLER. I thank the chairman what we call the pay-for. Since that deal with government breathing down for yielding time. time, the pay-for has been passed into their necks and stifling their growth. If I’m an original cosponsor of H.R. 4 law, it has been accepted, and now we this provision were left untouched in and proudly voted for this measure in are trying to find a new one. the President’s health care law, small the House Ways and Means Committee I don’t know why in God’s heavens as businesses across the country would be last month. to why we couldn’t have sat down to buried in paperwork. Instead of grow- Madam Speaker, today’s debate find one, as long as we certainly want- ing their businesses, advertising their marks the second time, over the course ed to avoid fraud on the taxpayer, and services and selling their products and of 3 months, that the House has taken work out something that is fair. I can’t hiring workers and growing our econ- the opportunity to discuss the disas- believe that the majority doesn’t be- omy, business owners would be stuck trous consequences the health care bill lieve that what we are trying to do is behind a desk filling out IRS forms. has and will continue to have on our to avoid having an unintended tax on Just this morning in the Wall Street economy. hardworking people. Journal, it was reported by a survey The House passed H.R. 2, which re- And so if this is going to hold it up that the small business owners are pealed the health care bill, with bipar- and cause us now to throw the baby out finding it more and more difficult to tisan support in January. Today we with the bath water, to have us reject- file their tax forms because of the oner- consider one of the many provisions of ing what we want to do, and that is to ous paperwork. It is unconscionable the bill that suppress economic recov- get rid of 1099 in its present form, I that the Democrat Congress paid for ery and job creation. The 1099 reporting think it is unfortunate. their massive spending on their health mandate will impose substantial paper- Now, I do recognize, Mr. Chairman care bill on the backs of American work and reporting burdens on an esti- and members of our distinguished com- small businesses; but today we’re going mittee, that political promises were mated 40 million entities, including to fix that. governments, nonprofits, and small made before the election. The question As a member of Ways and Means, I now has to be that even though there businesses. Instead of fostering job cre- am extremely proud to have seen this have been commitments by certain ation in the private sector—which is repeal bill take shape in our com- parties in the majority, that they have what our economy needs—the previous mittee. I am proud that we pay for this to provide savings through cutting, Congress has passed a provision that bill by protecting taxpayers instead of those two things should be somehow would direct precious time and re- demanding more money of them. By re- related. Every cut that we have in the sources to collecting volumes of infor- ducing waste, fraud, and abuse in the budget, whether it is the continuing mation and filling out mounds of new Democrats’ health care law, we pay for resolution or the budget of 2011 or 2010, paperwork for businesses all through- this 1099 repeal, which reduces the def- doesn’t mean that there is a savings. out this country. So telling the voters and our con- icit by $166 million in the first 10 years, Once the economic engine of this Na- stituents that we have slashed some- and by billions of dollars over the long tion, small businesses are now buckling thing out of the budget, it really goes run, while reducing the Federal spend- under the weight of onerous mandates beyond politics because never in the ing by nearly $200 billion over 10 years. and high taxes from a Federal Govern- discussions that I have had in the Ways This is a huge victory, but it marks ment that spends too much, taxes too and Means Committee with the major- the beginning of a new way that we are much, and borrows too much. As a re- ity or with the Democratic Caucus doing business here in Washington. sult, unemployment in Nevada has have we ever said: Are those people This new House majority will continue reached record highs that currently who are going to be helped or hurt to enact commonsense policy that does stand at nearly 15 percent. Democrats? Are those people Repub- not add to the debt or hide their true Efforts to repeal the 1099 provision licans? Or did we not say that we were costs with accounting gimmicks. enjoy bipartisan, bicameral support. sincerely trying to help all Americans The SPEAKER pro tempore (Mrs. I am pleased the House will pass H.R. to make certain they have affordable EMERSON). The time of the gentle- 4 as part of our commitment to allevi- health care. woman has expired. ate the burden the previous Congress For the majority not to want to cor- Mr. CAMP. I yield the gentlewoman placed on small businesses and Amer- rect whatever they think is wrong, but an additional 30 seconds. ican taxpayers. I remain committed to to make a campaign commitment they Mrs. BLACK. We can get government overturn the health care bill in its en- are going to eliminate the bill, elimi- working for the American people tirety. I support targeted legislation nate the President, and just make cer- today, and this is a good start. such as H.R. 4 to provide economic re- tain they have $100 billion in cuts, I Mr. LEVIN. I yield 3 minutes to the lief as soon as possible. think is really unfair to present these gentleman from New Jersey (Mr. PASCRELL), an active member of our b 1210 political problems to the American people. committee. Mr. LEVIN. It is now my pleasure to So I do hope that after we reject this, Mr. PASCRELL. Madam Speaker, yield 3 minutes to the distinguished not because the goal is not one that is you know, there is an old western song: gentleman from New York (Mr. RAN- bipartisan and with the support of the ‘‘I’m looking for love in all the wrong GEL). administration, but because how it is places.’’ Remember that song? It’s not (Mr. RANGEL asked and was given paid for is detrimental to the taxpayer, too old. Not too old. permission to revise and extend his re- whether he or she be Republican or We’re looking for revenue in all the marks.) Democrat. wrong places; not only in reference to Mr. RANGEL. Madam Speaker, I Mr. CAMP. At this time I yield 2 what we did in cutting indiscrimi- would have hoped that today we would minutes to a distinguished member of nately $60 billion which mostly affects have taken advantage of the fact that the Ways and Means Committee, the the middle class, and I think very dan- all of us want to get rid of a part of the gentlewoman from Tennessee (Mrs. gerously. So this provision was in the President’s affordable health bill that BLACK). health care bill which deals with bu- we believe has not reached the objec- Mrs. BLACK. Madam Speaker, I rise reaucracy at its worst, I would agree. tive that we wanted. Everybody, in- today enthusiastically supporting H.R. But in July of 2010, we voted with I cluding the President of the United 4, the 1099 repeal bill. This piece of leg- think only, correct me if I’m wrong, States, believes that 1099 in the present islation is a victory for common sense. two Republicans. We had a shot at this form should not be there. Republicans It is proof that the House is dedicated in the very beginning of mankind, and Democrats have voted to make cer- to getting the government off of the right, last summer, to vote against it. tain that it not be there. The last time backs of American small businesses I believe every Democrat voted against we attempted to correct it, we felt that and working for the people again. this provision, and two Republicans

VerDate Mar 15 2010 01:13 Mar 04, 2011 Jkt 099060 PO 00000 Frm 00015 Fmt 7634 Sfmt 0634 E:\CR\FM\K03MR7.029 H03MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE H1542 CONGRESSIONAL RECORD — HOUSE March 3, 2011 joined us, the gentleman from Lou- in all the wrong places. So let us be equity. This is about moving our econ- isiana on the opposition side—the hon- perfectly clear to the Members voting omy forward. This is about law-abiding orable opposition side—who is no on this legislation: citizens not becoming extensions of the longer with us, and I don’t know if he It’s not a subsidy. There is not only IRS. You’re either for them or against lost because he voted with us, and an- a definitional difference but a substan- them. I urge support of the bill. other gentleman from North Carolina tial difference between a subsidy and a Mr. LEVIN. I yield myself 15 seconds. who voted with us. We had a shot at tax credit. When you take away that The gentleman from Ohio mentioned this. We could have taken care of this tax credit from a middle class Amer- jobs, jobs, jobs. In a colloquial sense, last year, and you chose not to. So let’s ican who uses it when purchasing in- this bill would do a ‘‘job’’ on middle-in- set the record straight. surance, plain and simple, his taxes go come taxpayers. So here we are with this 1099 form. up. I now yield 3 minutes to a member of It’s going to take some time to fill it Mr. CAMP. I yield 3 minutes to a dis- our committee, the gentleman from out. We don’t like that bureaucracy. tinguished member of the Ways and Texas (Mr. DOGGETT). The thing comes down to, as Mr. WAX- Means Committee, the gentleman from Mr. DOGGETT. I thank the gen- MAN said, as Mr. NEAL said, how do you Ohio (Mr. TIBERI). tleman. pay for it? Mr. TIBERI. Thank you, Mr. Chair- I voted previously to repeal these Now beware, the distinguished chair- man. 1099 reporting requirements. But for Madam Speaker, I rise in support of man for the Ways and Means Com- broad Republican opposition, these re- the underlying bill today, which goes a mittee, a Wall Street poll today, not quirements would have been repealed a long way toward job creation. the New York Times, not the Village long time ago. Jobs, jobs, jobs. We heard about that I was a little amused to hear one of Voice, not fill in the blanks, that poll in the November election. We heard shows that over 74 percent, I think, of our Republican colleagues actually say about the fact that small business own- this morning that he is bewildered as the American people, that’s us, believe ers, in particular, were going to be that we should eliminate tax credits to why there are all these requirements hampered by a provision, by actually on small businesses around the country for big oil and gas companies. two provisions: one provision in the So I’m sure now that the loyal oppo- as a result of this provision. I can cure health care bill that appears that ev- your bewilderment: Get a mirror out sition sees that poll in that newspaper, eryone now seems to be opposed to but that you will join us in putting to rest and look at the mirror. You will see that the majority voted for; and then the Republicans who voted against re- forever those folks who least need any another provision that appeared in a help from the government getting help pealing this provision last year. bill in September of 2010 that even No, this is not about repealing 1099. from the government. went further than the underlying pro- This is going to cost us $22 billion. It is about shifting the burden onto vision in the health care bill, which ap- working families while at the same Both sides agree that one of the great plied to folks who own rental property benefits of this country is economic time protecting insurance monopolies. or to someone who has a vacation Despite the vigorous, determined ef- mobility. home or to somebody who has retail The SPEAKER pro tempore. The forts of these Republicans to under- property that he’s leasing out or to mine every aspect of health insurance time of the gentleman has expired. somebody who is leasing out a room in reform, under current law, working Mr. LEVIN. I yield the gentleman an his home. Suddenly, now we’re going to families will receive an opportunity to additional 2 minutes. require them to 1099 folks as well. access health insurance. Each year, the b 1220 What an amazing provision that passed in September of 2010. The bill government will match some of what Mr. PASCRELL. I thank the gen- corrects that. The bill corrects both as- workers pay for their health insurance. tleman from Michigan. pects. The precise amount of the match is de- This bill punishes those who get I heard this over and over during my termined by how low a worker’s salary ahead by raising the tax liabilities on campaign. Think about this: Bob is. A minimum-wage worker would get families who have worked hard and Roach, an independent insurance a little more assistance than someone who may have gotten raises or pro- agent, goes out to Staples and buys who is at a little higher level. This bill motions. paper. He’s going to have to 1099 Sta- ensures that the health insurance com- For a family of four in my district, ples. He goes to a hardware store to fix panies will get to keep all of that Fed- the Eighth District of New Jersey— something in his office. He’s going to eral match, but it treats the working please visit us. We would love to have have to 1099 the hardware store. It goes families considerably differently. you, Mr. Chairman—who makes $80,000 on and on and on. When a law-abiding If you have an employee who really a year, it will mean the family will get small business owner—maybe a sole shows ability and who may have a fair- a 50 percent reduction on their pre- proprietor—now is being made the per- ly menial or mundane job but who does miums if they purchase health insur- son who has to go out and be an exten- it and does it with pride and does it ance in the marketplace—from the pri- sion of the IRS, it is truly amazing. well and if that employee excels and if vate sector, I might add. There is no Then the pay-for is requiring people the employer rewards him with a bonus government operation here. If they get who get more than they’re entitled to and recognizes that that employee is a raise, however, and move above the to pay it back—what a novel concept— really trying hard and then decides threshold, they pay back a reasonable with no penalties, no interest. Just pay we’re going to give you a little pro- amount now; but in this legislation, back something that they’re not enti- motion and that you’ll get a little under this bill, if they work a little tled to. more pay or, perhaps, as with so many harder and receive a financial benefit, Now, I was talking to my immigrant families around this country, that em- the family will be punished. They’ll be dad and immigrant mom about this. ployee decides ‘‘I’ll never make it for forced to repay the tax credit. My dad has a sixth grade education, my family on this. I’m going to moon- There is no answer to that question. and my mom has an eighth grade edu- light. I’m going to take an extra job,’’ It’s a fact of life. cation. They were, first of all, quite then under any of these developments This means that the family which surprised by the fact that a family of for the enterprising worker, the Repub- I’m talking about now will be hit with four, making $88,000 a year, would get a licans today propose a penalty, a tax a surprise—get this, Madam Speaker— subsidy. My mom and dad dreamed of on success. of an $11,200 tax bill. It’s a $20,000 pre- making $88,000. They never came close At the end of that year, after those mium. They make $80,000. It’s quite a to it—but they’re middle class, and law-abiding employees have properly hefty fee, I might add. Everything is they’re not looking for a subsidy, and estimated their income from those 12 wonderful with health care in the they certainly would pay it back if months earlier, if their pay has gone up United States right now, but you’re they got more than they were entitled a dollar over the level, they’ll get a going to have added on—because you to. steep penalty. They may have to pay made a few bucks more—$11,200. Unin- Madam Speaker, this is about fair- literally thousands of dollars back even tended consequences. Looking for love ness. This is about jobs. This is about though they only got a bonus of a few

VerDate Mar 15 2010 01:13 Mar 04, 2011 Jkt 099060 PO 00000 Frm 00016 Fmt 7634 Sfmt 0634 E:\CR\FM\K03MR7.032 H03MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE March 3, 2011 CONGRESSIONAL RECORD — HOUSE H1543 hundred dollars. They would owe the ering around 9 percent, the decision to The Patient Protection and Afford- value, perhaps, of the entire credit to repeal this mandate should be easy. We able Care Act’s 1099 reporting require- the IRS. desperately need economic renewal, we ment for small businesses will be, in What type of people are we talking need private sector job growth, and we the words of Nathan Andrews, vice about? need to eliminate the small business president of Morse Manufacturing, an If the law had been fully effective, as paperwork that’s in this mandate. It’s 88-year-old company in East Syracuse, I wish it had been this year, and if time to eliminate this onerous man- ‘‘a paperwork nightmare.’’ He further workers who were earning $43,560 got a date and allow business to get back to adds that the requirement will hamper bonus that took them up to $43,600, doing what they do best, and that’s cre- the ability of his company ‘‘to func- they would have owed the full amount ate American jobs. tion, grow, and create jobs.’’ of the credit at the end of the year. Mr. LEVIN. Madam Speaker, it is This mandate is really indicative of a $1,000 or perhaps $3,000 or $4,000 to a now my pleasure to yield 3 minutes to larger problem—the stranglehold that family as a penalty—as a tax on suc- the gentleman from Louisiana (Mr. regulations have on our country. And cess—is a big amount to that family. RICHMOND). while regulations are sometimes nec- The SPEAKER pro tempore. The Mr. RICHMOND. Thank you, Rank- essary and often well-intentioned, they time of the gentleman has expired. ing Member LEVIN. have been increasingly becoming an Mr. LEVIN. I yield the gentleman an Madam Speaker, I agree with the Re- obstacle to our success as a Nation. By additional 2 minutes. publican chorus that we’ve been hear- success, I mean creating an environ- Mr. DOGGETT. Understand the di- ing now for 2 days, which is let’s repeal ment where businesses can flourish, mensions of how big the burden is that this onerous provision of the 1099 re- providing jobs so that the American people can obtain health insurance they want to shift to working families: quirement. while still benefiting from the best According to their own report on this However, even as a freshman member of the Democratic Party, let me say, health care system in the world. bill, the total is almost $25 billion over Mr. LEVIN. Madam Speaker, how welcome to the party. The Democratic the next decade. We’re not talking much time is there on each side? about a small amount of money. We’re Party started this July 30 of last year The SPEAKER pro tempore. The gen- to try to repeal this onerous provision talking about a significant amount of tleman from Michigan (Mr. LEVIN) has money in this Republican penalty on and only 2 Republicans voted for it. 10 minutes remaining. The gentleman success. Two hundred thirty-nine Democrats from Michigan (Mr. CAMP) has 37 min- Why haven’t they been out here re- said, let’s do away with this. You’re utes remaining. sponding to this penalty on success? right. It’s putting a massive burden on Mr. LEVIN. I reserve the balance of They want to refer to these people as our small businesses. my time. ‘‘cheats.’’ But not only did you get to the party Mr. CAMP. At this time I yield 1 These people aren’t cheats. They’re 7 months late, you got it wrong. You minute to the gentleman from Mis- people who are the best of America, decided to dance with Big Oil and cor- sissippi (Mr. NUNNELEE). who are striving and working to get porations that you didn’t want to close Mr. NUNNELEE. Thank you, Mr. ahead, who then get penalized for their the tax loophole. So what’s the pay- Chairman. success. for? Well, the pay-for is to reach in the Madam Speaker, in a day when pockets of working class Americans America has been suffering for nearly 2 b 1230 and take $25 billion. Right now, there years from significant unemployment, They have no answer because there is are people that are at work, and we’re when nearly one in 10 of our neighbors no answer. We should have passed this here in D.C. and we’re going to take $25 is unemployed, it is our duty to do ev- bill last year and passed it by paying billion out of their pocket. We should erything we can to allow these employ- for it by closing international cor- be ashamed of ourselves. ers to focus on job creation. porate tax loopholes. Naturally they I join with my colleagues and my Today, we will vote to repeal the bur- resist that just as they resist any at- good friend from New York (Mr. CROW- densome 1099 provision included in tempt to control insurance monopolies. LEY) who on yesterday tried to have a ObamaCare. As pledged to the Amer- Vote ‘‘no’’ on this penalty for success discourse about is there a better way ican people, we will work to get this that would be imposed on our working to pay for it. No one would yield. No unpopular job-destroying law off the families. Vote against this piece of leg- one would take amendments. So I books. We voted to repeal it outright, islation. would just say as a new Member, what we voted to defund it, and today we Mr. CAMP. I yield 2 minutes to a dis- the American people want, when we begin the process of repealing it piece tinguished member of the Ways and agree on an idea, let’s repeal the 1099 by piece. In order to comply with this 1099 Means Committee, the gentleman from provision, they want us to get together mandate, businesses would have to North Dakota (Mr. BERG). and figure out how to do it. They want spend countless hours generating and Mr. BERG. Madam Speaker, I rise us to see if we can’t find some amend- today in firm support of eliminating receiving needless amounts of paper- ments, find some common ground, so work. Now I started a small business, the 1099 requirement that burdens so that we don’t have to penalize working and I know the rewards and challenges many of our small businesses and costs families. of entrepreneurship. And I can tell you jobs. And I would say what they don’t those challenges don’t need to involve Madam Speaker, if Congress is seri- want is for us to reach in their pocket, filing needless paperwork. ous about getting Americans back to penalize them for success and take $25 Last summer, when I visited Trisha’s work and our economy back on track, billion, when there are other ways to Day Spa in Grenada, Mississippi, and I the choice is clear. We need to repeal do it. But what we should do is get to- explained to Trisha Shankle the 1099 this mandate. This law forces Amer- gether and figure out a way to do it so requirements in ObamaCare, she said ican businesses deeper and deeper into that we can start moving this country that such a requirement would be dev- the bureaucratic Washington night- forward. astating to her business. That’s been mare for small business. And it takes Mr. CAMP. I yield 1 minute to the the conclusion reached in small busi- away from their core mission, which is gentlewoman from New York (Ms. nesses around America. to grow their business and create jobs. BUERKLE). Today, a huge burden will be lifted Small business is the core of North Ms. BUERKLE. Thank you, Mr. from the shoulders of small businesses, Dakota’s economy. Farmers, ranchers Chairman. and for that I am grateful. That’s why and small businessmen, they’re all bur- Madam Speaker, I rise in support of I’m proud to cosponsor this legislation dened by this mandate. And another H.R. 4, the Small Business Paperwork and why I will vote to repeal it. regulation is another expense that Elimination Act. Too often, Congress Mr. LEVIN. I continue to reserve the makes it even more difficult for them and the Federal Government pass and balance of my time. to do business. institute regulations without counting Mr. CAMP. I yield 1 minute to the This is commonsense legislation. the cost to America’s businesses, the gentleman from Colorado (Mr. GARD- With national unemployment still hov- lifeblood of our economic success. NER).

VerDate Mar 15 2010 01:13 Mar 04, 2011 Jkt 099060 PO 00000 Frm 00017 Fmt 7634 Sfmt 0634 E:\CR\FM\K03MR7.042 H03MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE H1544 CONGRESSIONAL RECORD — HOUSE March 3, 2011 Mr. GARDNER. Madam Speaker, I H.R. 4 repeals the onerous tax report- between 13 and 14 percent—and that’s rise today in support of H.R. 4, which ing provisions Democrats enacted last reported, there are a lot of people who would eliminate the 1099 mandate in- year to help pay for both their health have stopped reporting. I know we’re stituted by the President’s health care care law and the TARP 3 legislation. It not unique. The entire country is de- bill. I’ve spoken with countless con- also protects taxpayers by reducing pending on Congress to make job cre- stituents around the Fourth Congres- waste, fraud and abuse in the Demo- ation a serious priority. And by passing sional District of Colorado, not as Re- crats’ health care law. this bill today, we’re showing the peo- publicans, not as Democrats, but as Finally, this bill will reduce the def- ple of southwest Washington and business owners, as people who have icit by $166 million in the first 10 years across America that we’re taking them worked to build up their companies and by billions of dollars over the long very seriously. from scratch into successful opportuni- run, while reducing Federal spending As I meet with small business owners ties for themselves and their families. by nearly $20 billion over the next 10 in my district, they express two major They oppose the 1099 provisions of the years. sentiments to me over and over again: health care bill, not because they’re During a time when the unemploy- Fear and uncertainty. They’re afraid Republicans, not because they’re ment rate is at or above 9 percent, ad- and uncertain about what this govern- Democrats, but because they know it ditional government mandates on ment is going to do to them next. What would cause grave impact on their small businesses is, from the stand- I would like to do today is eliminate businesses and their ability to continue point of economic policy, nothing short the uncertainty around this 1099 man- to thrive and grow and hire new people. of idiotic. We should be looking for date. Small businesses from across my Madam Speaker, they are speaking ways to free small businesses and com- district continue to ask me for more as the voice of this country’s busi- panies from unnecessary burdens. We predictability from their government nesses, the backbone of our economy. If should be looking for ways to encour- when it comes to regulations and we are going to create jobs in this age entrepreneurship. Instead, we have taxes. Instead of fear, increased bu- country to move our country forward, mandates that impose new obstacles reaucracy or higher costs, I’m com- then we have got to do it starting by for companies. We should be seeking mitted to providing them with that the repealing of the 1099 provisions. ways to restart the engine of job predictability. A bill passed last Congress in the growth. By voting to repeal the 1099 paper- 111th Congress, it doesn’t matter the Let me be clear that I accept the work mandate today we do two things: day or the time, but what passed was a proposition that every person and First, we take an immediate step that bill where people said, ‘‘We need to every business entity has both a moral will provide regulatory relief to the pass the bill to know what’s in the and legal obligation to fully report clinic in Tumwater and the restaurant bill.’’ People read the bill. They know their taxable income. The fundamental in Vancouver. Second, we send a signal what’s in the bill. problem with the new 1099 reporting re- to America that Congress is changing In Weld County a businessman is quirement is that they are imposed on the way it views small businesses. going to spend 40 hours a month to a broad universe of small business tax- They aren’t piggybanks, allowed to comply with these provisions. payers that annually conduct more exist only to foot the bill on terribly The SPEAKER pro tempore. The than $600 of transactions with other ill-conceived and unaffordable govern- time of the gentleman has expired. vendors. ment programs. Mr. CAMP. I yield the gentleman an The new filing requirements are both The SPEAKER pro tempore. The additional 30 seconds. burdensome as well as overinclusive. time of the gentlewoman has expired. Mr. GARDNER. In Larimer County, a The SPEAKER pro tempore. The Mr. CAMP. I yield the gentlewoman 1 manufacturing company is going to time of the gentleman has expired. additional minute. have to hire new people to comply with Mr. CAMP. I yield the gentleman an Ms. HERRERA BEUTLER. Today the provisions of this act. Is that the additional 30 seconds. this new Congress lets small businesses kind of job creation this body is look- Mr. WEST. Madam Speaker, let us know that we see them as the heart ing for? remember that even during the State and soul of what makes this country b 1240 of the Union Address, the President great, as entrepreneurs that can grow Let’s create penalties on business gave his support to repeal this onerous, and thrive and succeed as far as their and hope that it drives the economy? burdensome, and misguided mandate. hard work can take them. That’s the That’s not right. Mr. LEVIN. Madam Speaker, I con- job creation plan that has worked for Madam Speaker, today I urge the tinue to reserve my time. this country for the last two centuries, passage of H.R. 4, with both Repub- Mr. CAMP. Madam Speaker, I yield 2 and I’m confident it’s the plan that licans and Democrats standing up to minutes to the gentlewoman from will put folks in southwest Washington fight for businesses in this country to Washington (Ms. HERRERA BEUTLER). and across our country back to work. get our economy moving forward Ms. HERRERA BEUTLER. Madam Mr. LEVIN. Madam Speaker, I yield again. Speaker, today I come to the floor in myself 1 minute. Mr. LEVIN. Madam Speaker, I re- support of this legislation because One of the speakers on the majority serve the balance of my time. business owners in southwest Wash- side said that this was an effort to re- Mr. CAMP. Madam Speaker, I yield 2 ington sent me here to clear the run- peal health care piece by piece. That is minutes to the gentleman from Florida way for them to start growing and hir- clearly their misguided motivation. (Mr. WEST). ing more people. Here what they’re trying to do is on Mr. WEST. Madam Speaker, I stand In my district, I know a restaurant the backs of the middle class of Amer- here to support H.R. 4 for the repeal of owner in Vancouver and a doctor who ica. They don’t defend the pay-for ex- the 1099 bill. runs a small practice in Tumwater who cept by misrepresentation. At a time when business owners are simply don’t have the resources to A tax increase is a tax increase is a trying to survive in a sea of economic comply with the expanded 1099 man- tax increase on the middle class, on the turmoil, our government has thrown date. I would rather have them focus- middle class, on the middle class. them an anchor instead of a life pre- ing on opening a new franchise or offer- I now yield the balance of my time to server. Democrats have borrowed and ing services to patients—basically the gentleman from New York (Mr. spent $1 trillion of their stimulus pro- being successful entrepreneurs—than CROWLEY). gram, and the unemployment rate has spending time reacting to the moun- The SPEAKER pro tempore. The gen- remained stuck at or above 9 percent tains of new paperwork they’re going tleman from New York is recognized for nearly 2 years. Our focus must be to owe the IRS. for up to 9 minutes. on measures that will actually help My entire region in southwest Wash- Mr. CROWLEY. I thank the gen- American workers and allow employers ington has been suffering under double- tleman from Michigan for his yielding to focus on job creation. H.R. 4 will digit unemployment for multiple me the balance of the time. protect small businesses, their work- years. In my district’s largest county, I want to thank all my colleagues for ers, and American taxpayers. Clark County, the jobless rate hovers coming to the floor today to defend the

VerDate Mar 15 2010 01:31 Mar 04, 2011 Jkt 099060 PO 00000 Frm 00018 Fmt 7634 Sfmt 0634 E:\CR\FM\K03MR7.036 H03MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE March 3, 2011 CONGRESSIONAL RECORD — HOUSE H1545 middle class of this country. We all be- marks on the floor this morning and go over their income levels. They get lieve—and I think both Democrats and this afternoon—not a single one has re- the money. They walk away. Wipe Republicans, it’s been evident here futed or in any way questioned the ex- their hands of it. They’re taken care of. today, all believe—that the 1099 provi- ample I’ve given. You have not refuted But it’s the poor family that inad- sions need to be repealed. We recognize that example, which can only bring one vertently, unbeknownst to themselves, that. to conclude that the example I have goes over the limit, and they go over We, too, want to help small business. given is indeed correct. I don’t want it the cliff. And when they go over the We recognize that small business is the to be correct, but indeed it is correct. cliff, it’s at the tune of nearly $5,000 backbone of employment opportunity And if it is correct, it means a tax, a that they would have to repay. in our country. And that effort has tax on the middle class—one that they Instead of rewarding success—which I been bipartisan, it has been bipartisan cannot afford, especially during these hear from my Republican colleagues in the Senate, but not here. It’s be- difficult times. We don’t know when all the time, ‘‘We need to reward suc- cause we don’t like the pay-for provi- these tough times—when they will ever cess’’—we’re not doing it in this in- sion that my Republican colleagues are end for the middle class. stance. What we are doing is we are proposing and putting forward in this And I think it’s shameful the way in taxing success, as my friend from Wis- legislation because we believe that which the middle class has been char- consin pointed out. We are taxing suc- they switch the burden from the small acterized on the floor, That somehow cess. business man and woman and they they are the folks that cheat the sys- Often I hear about from my friends place it on the backs of the working tem, that they’re the ones that can’t be on the other side we need to encourage class in this country. trusted. We’re not talking about the people to work hard, work harder, We want to work in a bipartisan way. rich. We can trust the rich. We know don’t worry about the clock. Don’t We believe we can work together and that. worry about the clock. Work harder, come up with a solution. Now I have to And I don’t like class warfare, but get ahead. And we should not be stop- be honest, no one on the other side has you know what? The truth is we’ve let ping that. asked me for a compromise solution, it the people at the highest percent get But here is a perfect example—and hasn’t happened. We passed this bill off with no shared sacrifice whatsoever. it’s not coming from this side of the out of committee about 11⁄2 weeks ago, No sacrifice. Go on living your lives. aisle; it’s coming from that side of the almost 2 weeks ago, and still no one We’ll have two wars, you know, we’ll aisle—of we’re saying, you know what? has said JOE, do you have an idea? We increase the deficit. But don’t worry. Maybe you shouldn’t work so hard. have a couple of good ideas over here You all go on living your lives in man- Maybe you should pay attention to the I’d be willing to share with my col- sions and don’t worry about the rest of clock. Maybe you should make sure leagues on the other side, but that the country because it really won’t af- that when you file you’re not tripping hasn’t happened as of yet. I’m sorry fect you in the end. You’ll always sur- yourself up and unfortunately discour- this hasn’t happened because I thought vive. You can always hire a police force aging that family from getting health with this new Congress we would have to protect you. If you need health care, insurance because they’re afraid they’ll more bipartisanship, and unfortunately you can buy a doctor. If you need the owe a new tax of nearly $5,000. that hasn’t developed as of yet, at least garbage picked up, well, you know, And I agree with my friend from Wis- as it pertains to this bill. sanitation won’t pick it up anymore, consin again, this is nothing more than I’d also like to note that we’re going but you can pay someone and they will a Republican tax trap. It is a trap to on our third month here in the House cart it away. They’re living in a glass the middle class. It’s a trap to them. of Representatives, and quite frankly I house. It’s disparaging. And it’s unfortunate can’t see much of what we’ve done. I But the middle class, who are strug- that my colleagues have placed it in can’t say we’ve done much of anything, gling so much, who are looking for this light that somehow we’re reducing quite frankly. I can say that if you add some breaks, looking for an oppor- or eliminating the burden for one up the total, we’ve imposed upon the tunity to afford health care for them- group of workers and placing them on American people an additional $80 bil- selves and for their families—health the backs of the middle class worker. lion in taxes in different various ways, care. They just want to be on an even I don’t begrudge the small business- the latest of which will be this $25 bil- plane somewhat of everyone else if men and women. I was one myself be- lion that we’re going to impose upon they can afford health care. fore I came to Congress. I know the the middle class if this bill passes And the Federal Government is not burdens. I understand the bills. I un- today and somehow becomes law. This giving a handout. This is not a subsidy. derstand what comes in. But please bill, if enacted, will be a massive in- This is not welfare. These are tax cred- don’t remove the burden from the crease of tax on the middle class. its, like the college tax credit that small businessman and woman and I gave an example earlier today—it many of our constituents afford them- place that on the backs of middle class must have been about 2 hours ago—of a selves of. Like the child tax credit that taxpayers. That’s what you’re doing. family of four earning $88,000, approxi- many of our constituents afford them- If you vote for this bill, you will vote mately 397 percent of the Federal pov- selves of. It’s a tax credit to help them to increase taxes on the middle class. erty level. afford health insurance for their fami- Don’t kid yourselves. A tax on the mid- lies. And they never touch the money. dle class. b 1250 It would be one thing if you said to Mr. CAMP. Madam Speaker, I yield And I mentioned if the breadwinner me they got $5,000 in vouchers and they myself the balance of my time. I can of the family, if the husband or his wife took the money and they went off and assure the Speaker that I will not be or either of the spouses is the bread- they bought plane tickets to Hawaii for using all of the balance of my time. winner in that family, and they get a the family for that year, or they took There has been a lot of rhetoric bonus of $250, I said before that they’ve the money and they bought a new car, today, and as this debate winds down done great work. They’re management or they took the money and they and as we prepare to vote on this legis- material. It’s kind of laughable. bought furniture for their house. You lation, I urge my colleagues to look at ‘‘Here’s $250. Go out and buy the family know, that’s scamming the system. the facts. a steak dinner.’’ That is wrong. That we don’t promote. I think many of the arguments we’ve That $250 would bump them up to But they never touch the money. The heard from the other side ignore re- $88,250 which would place them at 401 money goes to the insurance company. ality. It ignores the reality of their percentile of the Federal poverty level, You know, the insurance companies own legislation—legislation that and it would expose that middle class who desperately need that money, they they’ve passed. It ignores the reality of family because of their $250 bonus to get the money. They’re covered. their own votes. $4,460. They’re fine. We don’t ask them to be Under the health care bill, you put Not one, not a single Member of the the watchdogs. We don’t ask them to cliffs in the bill, if we want to talk majority—and we’ve had over 19 Mem- make sure the families are in compli- about cliffs. There are levels where bers of the majority testify or give re- ance, make sure they’re not going to people need to pay back the entire

VerDate Mar 15 2010 01:31 Mar 04, 2011 Jkt 099060 PO 00000 Frm 00019 Fmt 7634 Sfmt 0634 E:\CR\FM\K03MR7.039 H03MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE H1546 CONGRESSIONAL RECORD — HOUSE March 3, 2011 amount of the subsidy they receive. In This Congress, I am a cosponsor of the Small Today we have the opportunity to correct the original bill, that was at 400 per- Business Tax Relief Act of 2011, which would the mistakes of the past. H.R. 4 allows this cent of poverty. That is the level that repeal the 1099 reporting requirement. Congress to stand up for small businesses is no legislation we see today. Later in H.R. 4 would change the subsidies and re- and hard-working taxpayers by eliminating December, when you wanted to address payment obligations of the tax credits avail- what is obviously a job destroying regulation. the doctor fix, you just moved that able for people with incomes below 400 per- By removing the 1099 reporting requirement, level up to 500 percent of poverty. cent of poverty to assist with the cost of ob- we will free businesses from time-consuming There is still a cliff in the bill. There taining affordable health insurance. This would paperwork so that they may grow and help our was a cliff in the original bill. There is be a massive tax increase on the middle economy recover. We all hear from our con- a cliff now. class. stituents, ‘‘Where are the jobs?’’ By supporting Also, this idea that repaying a sub- These tax credits will help low and middle this legislation, we can show the American sidy to which one is not entitled is income individuals and families pay insurance people that we are serious about creating a somehow a new concept was in the premiums. The credits are available for those business environment that promotes job original health care legislation. It still individuals and families—up to 400 percent of growth and prosperity. is in the original health care legisla- the poverty line and cap the family’s share of I applaud the gentleman from California for tion. We just believe we need to take health insurance premiums at 9.5 percent of recognizing early on the negative impact this further steps to protect the taxpayers. adjusted gross income. regulation will have on small businesses. I en- And I would also say that if you look This bill would force people to pay back bil- courage my colleagues in the Senate to con- at the legislation, there is on page 123 lions of dollars in tax credits they received to sider this legislation quickly so we can bring a subpart (b) eligibility determination obtain affordable health insurance. Since the certainty to American businesses and avoid where applicants apply for the subsidy, tax credits go directly to the health insurance the obvious complications that the 1099 re- and they’re required to report certain company, individuals and families who had porting requirement presents. things. But they’re also required under small fluctuations in their income would have Mr. VAN HOLLEN. Madam Speaker, as I this section to report changes in cir- to pay back money that they never received. have done before, I rise today in strong sup- cumstances. That obligation is on the For example, under this legislation a family of port of eliminating the 1099 paperwork re- taxpayer, on the person seeking the four earning $88,000 a year would have to quirement on small businesses. In fact, I subsidy. And that is in their legisla- pay $4,640 that they never received if the would remind my colleagues on the other side tion, and we think that’s an important family got an unexpected $250 year-end of the aisle that the only reason we are here concept to protect. bonus. today—the main reason this is still an issue at In a time where we want to create jobs, this Let’s stick with the facts. The fact is all—is because House Republicans opposed bill would penalize individuals who found a the increased tax reporting require- eliminating this provision when the Small Busi- new job or got promoted. This bill harms aver- ments enacted last year will hurt our age working Americans who cannot obtain in- ness Tax Relief Act of 2010 was brought to ability to create jobs. The 1099 provi- surance through their employers—the exact the floor of the House in July of last year. sion hurts our ability to create jobs in So this issue isn’t new, and it really isn’t a people we should be helping. this country. I agree that this reporting requirement question of whether there is bipartisan agree- Fact, the unemployment rate has should be repealed. That is why I am a co- ment to repeal this onerous requirement. been stuck at or above 9 percent for sponsor of the Small Business Tax Relief Act There is. The question is how you pay for it. nearly 2 years, and this Congress owes of 2011. That bill would repeal the 1099 re- And that’s where today’s bill goes astray. We it to the American people to do every- porting requirement, but does not increase can and should repeal the 1099 reporting re- thing it can to help small businesses, taxes on the middle class. quirement. But we should not do it on the job creators, and workers get back on Today, we have a chance to vote against in- backs of middle class Americans buying their feet. creasing taxes for hard working Americans. I health insurance for their families who are Fact, repealing the 1099 provision is a urge my colleagues to vote no on this piece of playing by the rules and complying with the top priority of small businesses, and legislation. law. And I would point out that the law they’re that’s why we have over 225 organiza- Mr. SENSENBRENNER. Madam Speaker, I complying with received a near unanimous tions supporting this legislation, in- rise today in support of the Small Business vote of 409–2 this past December. cluding the Nation’s largest small busi- Paperwork Mandate Elimination Act, as I be- I stand ready and willing to work with my ness organization, the NFIB. lieve it serves as a critical step in the ongoing colleagues on both sides of the aisle to find an And, fact, this bill is a tax cut and a process of preventing last year’s health care acceptable way to pay for this repeal before spending cut, and that’s why it has the law from destroying American jobs. We cannot the requirement takes effect in 2012. But I support of groups like the Americans ignore the cries from businesses around the strongly believe that effort should focus on for Tax Reform, the National Taxpayer country that the 1099 reporting requirement is ending any of the myriad loopholes and un- Union and Americans for Prosperity. an unnecessary burden that will cost jobs. justified subsidies in current law before impos- Madam Speaker, I urge my col- In a time when our economy is struggling to ing an effective tax increase on the middle leagues to vote for this bill so small emerge from one of the worst recessions in class. business can get back to what they do generations, we must work to free small busi- Ms. HAYWORTH. Madam Speaker, yester- best: creating jobs. nesses from onerous regulatory burdens. We day morning I received a letter from a con- I yield back the balance of my time. cannot afford to promote policies that use stituent, Seth Arluck of New Hampton, NY. Mr. HOLT. Madam Speaker, I rise in opposi- needless paperwork as a means to strangle Seth’s three-generation family business was tion to H.R. 4, the Small Business Paperwork growth and prosperity. The 1099 reporting re- hit hard by the housing market crash. The Mandate Elimination Act of 2011. quirement on transactions greater than $600 1099 rule in the Affordable Care Act, Seth I regret that the authors of this legislation was included in the health care overhaul with- says, ‘‘would place a disproportionate burden have taken such a thoughtless approach. We out consideration of the individuals, families, on my very small lumber yard. . .I do not could have had before us today a bill that and small businesses that would suffer as a need an additional and unnecessary expense would repeal any unnecessary and burden- result. By devoting more resources to comply that serves no apparent purpose.’’ some paperwork that is at issue here and we with this new requirement, we are preventing He adds that the penalty for 1099 non-com- could have done it without putting burden on businesses from doing what is essential: cre- pliance, to fund small-business lending, adds ordinary families. ating jobs. insult to injury: ‘‘How clever, fine the heck out This bill would repeal a reporting require- But the disregard for small businesses did of me, and loan me the money to pay fines.’’ ment that would require business owners to not stop there. Last fall, the 1099 reporting re- Madam Speaker, this is no way to treat the provide an IRS form 1099 to all vendors with quirement was expanded to include rental engine of growth for America. Instead of in- whom they pay $600 or more annually for property expense payments. Instead of recog- vesting in adapting to his clients’ needs in their services. nizing the disastrous effect of this new require- changing times, Seth Arluck will now have to I agree that this reporting requirement ment, there were those in the last Congress spend precious time and money on paper- should be repealed. In fact, I voted to repeal who decided it was a good idea to expand it. work. this requirement last year. Unfortunately, the Now we are left with even more taxpayers The bill we must pass today is an important bill attracted only two Republican votes and who will suffer the consequences of an al- step toward curing the ill effects of the Afford- failed to pass the House on July 30, 2010. ready misguided regulation. able Care Act. The Senate has already acted

VerDate Mar 15 2010 01:31 Mar 04, 2011 Jkt 099060 PO 00000 Frm 00020 Fmt 7634 Sfmt 9920 E:\CR\FM\K03MR7.041 H03MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE March 3, 2011 CONGRESSIONAL RECORD — HOUSE H1547 and I call on President Obama not to delay voted on H.R. 5982, the Small Business Tax mitted to the interests of small businesses and helping Seth, and so many other of our Na- Relief Act. Unfortunately, all but two Repub- farmers, protecting them from burdens which tion’s job creators put Americans back to licans voted against that bill. That bill, like to- restrict their growth. I urge all of my col- work. day’s bill, would eliminate the 1099 provision. leagues to vote in favor of repealing the ex- MARCH 2, 2011. Unlike today’s bill, however, it paid for the panded 1099 requirement. Hon. NAN HAYWORTH, $24.9 billion cost of repeal in a very, very dif- Ms. EDDIE BERNICE JOHNSON of Texas. LHOB, ferent manner. Madam Speaker, I voted against the H.R. 4, Washington, DC. H.R. 5982, the Democratic approach, would the ‘‘Small Business Paperwork Mandate DEAR DR. HAYWORTH: I am very concerned have paid for reform by eliminating tax loop- Elimination Act of 2011’’ commonly known as about the 1099 reporting provision in the healthcare bill passed in the 111th Congress. holes that allow corporations to ship jobs over- ‘‘the 1099 provision’’. I would like to submit a This requirement, to issue a 1099 for each seas. It would have solved the problem while statement for the RECORD to clarify my posi- business to business expenditure over $600, also eliminating incentives to locate operations tion on this issue. would place a disproportionate burden on my overseas. Creating American jobs should be Forms 1099 have been used by the IRS for very small business. I am the third genera- our number one priority, and H.R. 5982 would decades to better track income. The rules tion of my family to operate this retail lum- have helped us do that. would have required businesses to file Form ber yard in Orange County. Our sales and H.R. 4, the Republican approach, doesn’t 1099 with the IRS to report payments made to revenues, so dependent on the housing and close corporate offshoring loopholes. Instead, home improvement sectors, have seriously corporations for goods and certain services to declined since 2008. We have gone from seven it puts the $24.9 billion cost of repealing the help the IRS collect taxes that are legally to four employees including myself and my 1099 reporting requirements squarely on the owed, and in turn, keep taxes lower for all tax- brother; our part time bookkeeper was one of backs of middle-class families. It undermines payers. the staff reductions. the entire approach of the Affordable Care Although I support the measure in principle, Last year we wrote 600 checks for pur- Act—to help individuals and families obtain af- I do believe this type of reporting keeps track chases other than payroll. We have about 150 fordable, quality health care—by imposing of what businesses owe the federal govern- vendors in our accounts payable. Although many of our purchases are with recurring taxes on those who receive assistance to help ment in taxes and close any loopholes for any vendors, there are many one time purchases pay premiums and cost-sharing requirements. misreporting. In fact, during the 111th Con- which exceed $600: repairs to vehicles and Under the Republican bill, individuals and gress, a repeal bill was approved by the equipment, replacement of computer and of- families who are eligible to get assistance at Democratic House that would close tax loop- fice equipment, one time advertising ex- the beginning of the year are subject to tax- holes for companies that ship jobs overseas penses, dues to business organizations, an- ation if they are fortunate enough to get a and protected people from any tax increases nual insurance premiums, and sundry ex- raise or a better job by the end of the year. with incomes below 400 percent of the federal penses. How many 1099’s would I have to Even if they are a few dollars over the eligi- produce? 50, 75, 100? I know that it would ex- poverty level (approximately $88,000 for a ceed the three that are done now for interest bility limit, the Joint Committee on Taxation family of four) from having to pay back the and rent. I am now the bookkeeper; do I at- estimates that they could be subject to taxes IRS their tax credit if they saw a change in in- tempt this challenge or pay my accountant up to $6,000 under H.R. 4. The assistance, by come. or another outsource. I have forgone many the way, is given directly to the insurance The Republican 1099 repeal removes this paychecks in the last two years, I do not company but the tax penalty would come di- protection. So, if a family earning $88,000 a need an additional and unnecessary expense rectly out of the pockets of families. year gets a $250 Christmas bonus, and be- that serves no apparent purpose. The Republican bill not only would impose Another aspect of this requirement is the cause of it, are bumped up to 401 percent of need to obtain each vendor’s Federal I.D. or harsh penalties on middle-class families, it the federal poverty level, this family would be Social Security number in order to legally would also undermine the second principle of required to refund to the IRS the entire tax comply with 1099 reporting. That means that the Affordable Care Act: to expand coverage. credit of $4,640—out of their own pockets. if a business has any chance of cumulatively Again according to the Joint Committee on As a Senior Member of Congress who exceeding the $600 threshold, the SSN or EIN Taxation, it would take away coverage from proudly represents a vibrant small business has to be asked for in advance. In these 266,000 Americans who would no longer take sector, I know firsthand the value of small times of rampant identity theft, there will insurance because of concerns that they could businesses in north Texas. I remain committed be many refusals to furnish these ID num- potentially be required to pay substantial taxes bers. Failure to correctly report a l099 re- to improving tax administration and enhancing sults in fines. As if that was not daunting the following year. voluntary tax compliance without making the enough, the previous Congress passed HR I wish I could vote today to repeal the 1099 middle class pay. 5297 last September, The Small Business reporting requirements, just as I voted to re- I look forward to working collaboratively with Jobs Act, which increased the penalty for peal them last year. I cannot, however, solve the small business community to improve the 1099 non-compliance from $50 to $250 per vio- the burden on small businesses by imposing a ability of small businesses to meet their tax lation. The increase in fines was to help fund burden on middle-class families, particularly obligations. small business lending. How clever, fine the when we have so many better choices to pay Mr. STARK. Madam Speaker, the debate heck out of me, and loan me the money to for repeal. we’re having today has nothing to do with re- pay fines. Thank you 111th Congress. And what justifies this new layer of regula- Mr. REED. Madam Speaker, I rise today to pealing the 1099 provision. Like every Demo- tion? The apparent belief that business is in- support H.R. 4, the Small Business Paperwork crat here who was in Congress last year, I’ve herently untrustworthy and cheating the Mandate Elimination Act of 2011. The ex- already voted to do that. U.S. Government of it’s rightful tax reve- panded reporting requirements to the Internal We brought forth a bill last year to repeal nues? Is it the need to find any alleged rev- Revenue Service are mandated by the health the 1099 provision and paid for it by closing enue source, no matter how unsavory, to care reform act of 2010 on any purchase tax loopholes that encourage businesses to fund Obamacare? No thank you. made $600 or more. This provision would di- move jobs overseas and other loopholes that Please repeal the 1099 provision now. Sincerely, rectly impede economic growth in the 29th promote tax avoidance. Even though that bill SETH N. ARLUCK, District of New York. At a time of great uncer- was endorsed by NFIB, all but two of our Re- President, tainty, the economic recovery in the 29th Dis- publican colleagues voted no because they New Hampton Lumber Co. Inc., trict continues to lag behind the rest of the na- preferred to protect big business over small New Hampton, NY. tion. This burdensome mandate must be elimi- businesses. Ms. SCHAKOWSKY. Madam Speaker, I rise nated and I proudly support the repeal for the Because of Republican opposition last year, in opposition to H.R. 4, the Small Business sake of our small businesses and farmers. we’re here again considering legislation to re- Paperwork Mandate Elimination Act of 2011. Further, we must act to ensure that ‘‘red- peal the 1099 provision. Unfortunately, our We all agree that the 1099 reporting re- tape’’ measures and over-reaching regulations Republican colleagues have taken an area of quirements added by the Senate to the Afford- do not continue. If we are going to reduce agreement and rejected bipartisanship by able Care Act need to go. That is not in ques- government spending, it starts with repealing choosing to tax middle class families. That’s tion. None of us wants to burden small busi- unnecessary requirements, such as the 1099 right, this Republican bill is a $25 billion mid- ness men and women with unreasonable re- requirement. This provision of the health care dle class tax increase. porting burdens. All of us are committed to reform law contributes to the bloating of the The Affordable Care Act provides tax credits eliminating this requirement. Federal Government and must be repealed. to make health coverage affordable to those In fact, we could have and should have As we move forward towards returning fiscal with lower and middle incomes. These tax solved this problem last year, when the House prosperity to our nation, I will remain com- credits are provided in advance and then are

VerDate Mar 15 2010 02:54 Mar 04, 2011 Jkt 099060 PO 00000 Frm 00021 Fmt 7634 Sfmt 9920 E:\CR\FM\A03MR7.016 H03MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE H1548 CONGRESSIONAL RECORD — HOUSE March 3, 2011 reconciled at the end of the year. In this bill Mr. GRAVES of Missouri. Madam Speaker, provision added by the Patient Protection and today, Republicans are trying to raise $25 bil- our nation’s small businesses create 7 of Affordable Care Act that extends to corpora- lion by putting middle class families on the every ten 10 new jobs. They represent 99.7 tions that are not tax-exempt, the requirement hook for massive tax increases when they rec- percent of all employer firms, and employ 97.5 to report payments of $600 or more. oncile those payments. The Joint Committee percent of all identifiable exporters. They are However, I must say that while I strongly on Taxation estimates that this Republican bill the entrepreneurs that can lead us out of the support providing relief to America’s small will raise taxes on middle class families in this economic downturn. We are depending on businesses and I absolutely support the land- income category by an average of $3,000. them to reinvigorate our economy. But the fact mark Patient Protection and Affordable Care Many families would be liable for much higher is, Washington has not provided them with an Act, I deeply regret that yet again we have tax increases. environment in which they can thrive. had a closed rule regarding the full consider- The President has announced his strong op- At House Small Business Committee hear- ation and making of useful, meaningful position to this financing mechanism. Con- ings, owners of small firms have told us week amendments to H.R. 4. When the Republican sumer Advocates have also spoken out in op- after week that they want Washington to get majority came into this Congress they prom- position. These groups include Families USA, out of the way so they can do what they do ised an open and transparent process. This is Community Catalyst, SEIU and the Center on best: create jobs and help move our economy not open and transparent. It does not provide Budget and Policy Priorities. forward. But Washington keeps piling on man- the assistance to America’s small businesses All of us want to resolve this 1099 problem. dates that hold them back. The expanded that my colleagues on the other side of the But to do so on the backs of middle income 1099 information reporting requirement is a aisle would like us to believe and in fact, fur- working Americans is flat out wrong. I urge my perfect example. ther burdens small businesses. colleagues to join me in voting no on this bill At one of our recent hearings, a small man- If we had a truly open process, we could today so that we can come together and find ufacturer from North Carolina said, ‘‘The ex- have all worked together in a bi-partisan man- a way to finance 1099 repeal that doesn’t panded 1099 reporting requirement included in ner to provide real relief to America’s middle gouge the middle class. the healthcare law is a good example of the class and small businesses instead of the tax Mr. CANTOR. Madam Speaker, last Novem- kind of misguided policy that works against the increase we are being asked to heap onto ber, Americans sent a clear message of defi- interest of small businesses. Tax filing is never their backs today. ance to the status quo. They saw that govern- a task small business owners look forward to, The simple fact is that H.R. 4 Would In- ment was spending taxpayer money recklessly but making filing more burdensome only crease Taxes on Middle Class and Raises the and making it harder for our job creators to drains resources from already struggling com- Number of Uninsured. put Americans back to work—and they voted panies.’’ Few industries have been as affected It is not good for the people of the 18th con- for something better. by the economic downturn as home builders. gressional district of Texas, it is not good for House Republicans have responded by A small home builder from Kentucky said, the State of Texas, and it is not good for the doing everything in our power to foster an en- ‘‘. . . [T]here will be significant costs involved United States of America. vironment where businesses can expand, in- to track, aggregate and report required trans- H.R. 4 Increases Taxes on the Middle vestors can invest, and hard work can be re- actions.’’ Class. H.R. 4 would force many middle-in- warded. That means cutting excessive spend- Madam Speaker, at a time when we should come Americans to pay higher taxes. Simply ing and burdensome regulations and growing be making it easier to create jobs and promote by accepting a better job, picking up extra private-sector jobs and the economy. shifts or receiving a holiday bonus, these fami- Today we are cleaning up the mess result- economic growth, small businesses don’t need lies would have to pay the IRS the value of ing from oppressive new 1099 requirements. another costly and burdensome mandate. I Tucked into Obamacare and a so-called thank Chairman CAMP for his work in advanc- their health premium tax credits, jeopardizing small business bill last year, these regulations ing this important legislation to the House their financial security. threaten to wreak havoc upon small busi- Floor, and recognize Chairman LUNGREN for H.R. 4 Creates a Steep Cliff that will Penal- nesses. They have become a symbol of the his leadership on this issue. I ask my col- ize the Middle Class. It would eliminate protec- unanticipated pitfalls of big government and leagues to support H.R. 4. tions for families with income between 400 partisan legislative procedure. Mr. DINGELL. Madam Speaker, I rise in op- and 500 percent of poverty ($88,000 to In this challenging climate, businesses position to H.R. 4, the Small Business Paper- $110,000 for a family of four). That means if should be able to focus on staying profitable work Mandate Elimination Act. I want to say a family’s actual annual income was even one and looking for opportunities to grow. Instead on record, however, that I support repeal of dollar above 400 percent of poverty, they they are being asked to divert precious time the Affordable Care Act’s 1099 mandate. This could have to pay the IRS the entire value of and resources to satisfy yet another layer of onerous paperwork requirement was included their health insurance premium tax credits. Ac- red tape from Washington. in the act at the insistence of our colleagues cording to the Joint Committee on Taxation, By repealing these ill-conceived require- in the other body, and not by us in the House. the average payment for a family between 400 ments, we take a big step toward putting The 1099 mandate should be repealed, but and 450 percent of poverty will go up by America back on a growth footing. We reaffirm it must be done in a fiscally responsible man- $3,000 due to the Republican policy, for a that this Congress will no longer finance the ner than does not harm working families, who total of $6,000 or more in payments to the expansion of government on the backs of our struggle every day to cope with the effects of IRS. small businesses, America’s economic engine. the current recession. The bill we are pres- H.R. 4 Undoes the Bipartisan Agreement on The United States is the creative capital of ently considering passes the cost of the 1099 Health Care. While there has been conten- the world. We have the most innovative entre- repeal on to middle class Americans by ensur- tious disagreement about health reform, the preneurs and the most determined and resil- ing that more of them will be subject to in- structure of the repayment caps is one of the ient workforce. creased taxes. Moreover, H.R. 4 will reduce few health reform issues with strong bipartisan Our businesses and our people have proven the number of Americans with health coverage agreement. The House fixed the problem of a that they can out-innovate and out-compete by over a quarter-million, according to the steep cliff if one’s income increased to 400 any country in the world. But they can’t do it Joint Committee on Taxation. percent of poverty by a bipartisan vote of 409– if Washington keeps making it harder for Madam Speaker, H.R. 4 is a poor com- 2 last December—and it was signed into law. them. And they can’t do it if they are plagued promise, reminiscent of the legislative travesty H.R. 4 undoes that bipartisan agreement so by fears of excessive regulation, higher taxes foisted on the American people last December that Republicans can increase taxes on the and inflation. when Senate Republicans insisted unemploy- middle class—those between 400 and 500 Our job as legislators is to create oppor- ment benefits come at the price of tax cuts for percent of poverty—by $25 billion. tunity—to restore the principle that everyone in the rich. I call on my colleagues to oppose this H.R. 4 Leads to an Increase in the Number America has a fair shot. bill and instead work to find more responsible of Uninsured. According to the Joint Com- That’s why it is imperative that we cut need- ways to pay for the repeal of the 1099 man- mittee on Taxation, the Republican proposal less regulation and bring spending down to date, such as closing foreign tax loopholes will cause an increase in the uninsured of sustainable levels. And that’s why it is incum- and eliminating tax breaks for oil companies. 266,000. Over a quarter of a million individuals bent upon us to support this legislation to Ms. JACKSON LEE of Texas. Madam will no longer receive health insurance out of make sure small businesses aren’t bogged Speaker, I rise today in opposition to H.R. 4, fear that they will be forced to pay substantial down in needless paperwork so that they can the Small Business Paperwork Elimination Act amounts to the IRS at tax time. grow and create jobs. I urge my colleagues to of 2011. The stated purpose of this is to H.R. 4 Disproportionately Hurts Families Liv- support H.R. 4. amend the Internal Revenue Code to repeal a ing in High Premium Areas. Families who

VerDate Mar 15 2010 01:31 Mar 04, 2011 Jkt 099060 PO 00000 Frm 00022 Fmt 7634 Sfmt 9920 E:\CR\FM\A03MR7.020 H03MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE March 3, 2011 CONGRESSIONAL RECORD — HOUSE H1549 have to pay the IRS the value of their health The bill was ordered to be engrossed (4) Section 25B(g)(2) of such Code is amend- premium tax credits will have to pay even and read a third time, and was read the ed by inserting ‘‘25E,’’ after ‘‘25D,’’. more if they live in parts of the country that third time. (5) Sections 25D(c)(1)(B) and 25D(c)(2)(A) of such Code are both amended by inserting have higher premiums due to circumstances in MOTION TO RECOMMIT ‘‘and section 25E’’ after ‘‘this section’’. the local market. Mr. MCNERNEY. Madam Speaker, I (6) Section 26(a)(1) of such Code is amended So, I urge my colleagues to join me in op- have a motion to recommit at the by inserting ‘‘25E,’’ after ‘‘25D,’’. posing this bill and supporting true bipartisan desk. (7) Section 30(c)(2)(B)(ii) of such Code is relief for America’s middle class and small The SPEAKER pro tempore. Is the amended by inserting ‘‘25E,’’ after ‘‘25D,’’. businesses. gentleman opposed to the bill? (8) Section 30B(g)(2)(B)(ii) of such Code is amended by inserting ‘‘25E,’’ after ‘‘25D,’’. Mr. MARINO. Madam Speaker, I rise today Mr. MCNERNEY. I am opposed in its (9) Section 30D(c)(2)(B)(ii) of such Code is in strong support of H.R. 4, the Small Busi- current form. ness Paperwork Mandate Elimination Act of amended by striking ‘‘sections 23 and 25D’’ Mr. CAMP. Madam Speaker, I reserve and inserting ‘‘sections 23, 25D, and 25E’’. 2011. This legislation would repeal one of a point of order. (10) Section 1400C(d) of such Code is amend- many burdensome requirements being im- The SPEAKER pro tempore. A point ed by inserting ‘‘25E,’’ after ‘‘25D,’’ both posed on Americans, especially the job cre- of order is reserved. places it appears. ators, by the health care law passed last year. The Clerk will report the motion to (c) CLERICAL AMENDMENT.—The table of This 1099 mandate highlights the problem with recommit. sections for subpart A of part IV of sub- ignoring the voice of the American people and The Clerk read as follows: chapter A of chapter 1 of such Code is passing a ‘‘bill so you can find out what is in amended by inserting after the item relating Mr. McNerney moves to recommit the bill to section 25D the following new item: it.’’ H.R. 4 to the Committee on Ways and Means Small business owners from Northeastern with instructions to report the same back to ‘‘Sec. 25E. Credit for taxpayers subject to a Pennsylvania have found out what was in the the House forthwith with the following tax increase under the Small amendment: Business Paperwork Mandate health care bill and they are not happy: Elimination Act of 2011.’’. Small business owner, Arthur Borden of Add at the end of the bill the following new sections: (d) EFFECTIVE DATE.—The amendments Lewisburg, states, ‘‘It’s hard to believe that made by this section shall apply to taxable elected representatives of our people could be SEC. 5. NONREFUNDABLE PERSONAL CREDIT FOR TAXPAYERS SUBJECT TO A TAX years beginning after December 31, 2013. so irresponsible to allow such a ridiculous pro- INCREASE UNDER THE SMALL BUSI- SEC. 6. INCOME ATTRIBUTABLE TO DOMESTIC vision as the 1099 mandate included in the re- NESS PAPERWORK MANDATE ELIMI- PRODUCTION ACTIVITIES. cently passed health care law. As the owner NATION ACT OF 2011. (a) IN GENERAL.—Subparagraph (B) of sec- of a small business which is already overbur- (a) IN GENERAL.—Subpart A of part IV of tion 199(c)(4) of the Internal Revenue Code of dened by rules, regulations, and rolls of red subchapter A of chapter 1 of the Internal 1986 is amended by striking ‘‘and’’ at the end Revenue Code of 1986 is amended by inserting of clause (ii), by striking the period at the tape, I am appalled and frightened by the after section 25D the following new section: prospects of what such an ill conceived law end of clause (iii) and inserting ‘‘, and’’, and ‘‘SEC. 25E. CREDIT FOR TAXPAYERS SUBJECT TO by inserting after clause (iii) the following will do.’’ A TAX INCREASE UNDER THE SMALL new clause: Small business owner, Bruce Brown of BUSINESS PAPERWORK MANDATE ‘‘(iv) in the case of a major integrated oil Clarks Summit, states, ‘‘Businesses are al- ELIMINATION ACT OF 2011. company (as defined in section 167(h)(5)), the ready overburdened with tax paperwork and ‘‘(a) IN GENERAL.—In the case of an indi- production, refining, processing, transpor- reporting requirements, so the additional re- vidual, there shall be allowed as a credit tation, or distribution of oil, gas, or any pri- against the tax imposed by this chapter for mary product thereof.’’. quirements included in the PPACA will only in- the taxable year an amount equal to the ex- (b) EFFECTIVE DATE.—The amendment crease the cost and complexity of complying cess (if any) of— with the tax code.’’ made by subsection (a) shall apply to taxable ‘‘(1) the regular tax liability of the tax- years beginning after December 31, 2014. Small business owner, Thomas Musser of payer for the taxable year, over ‘‘(2) the regular tax liability of the tax- SEC. 7. MAJOR INTEGRATED OIL COMPANIES IN- Mifflinburg, simply states, ‘‘I do not support the ELIGIBLE FOR LAST-IN, FIRST-OUT 1099 tax reporting requirement.’’ payer for the taxable year, determined by ap- METHOD OF INVENTORY. plying section 36B(f)(2) (as in effect on the The Pennsylvania based business net- (a) IN GENERAL.—Section 471 of the Inter- working organization, SMC Business Councils, day before the date of the enactment of this nal Revenue Code of 1986 is amended by re- released a survey of its member businesses section) in lieu of section 36B(f)(2) (as in ef- designating subsection (c) as subsection (d) fect on the day after the date of the enact- which found that their members file roughly 10 and by inserting after subsection (b) the fol- ment of this section). lowing new subsection: forms per year; under the new requirement ‘‘(b) CARRYFORWARD OF UNUSED CREDIT.— ‘‘(c) MAJOR INTEGRATED OIL COMPANIES IN- from the health care law, the members esti- ‘‘(1) RULE FOR YEARS IN WHICH ALL PER- ELIGIBLE FOR LAST-IN, FIRST-OUT METHOD.— mated that would jump to more than 200 a SONAL CREDITS ALLOWED AGAINST REGULAR In the case of a major integrated oil com- year. The new costs associated with com- AND ALTERNATIVE MINIMUM TAX.—In the case pany (as defined in section 167(h)(5)(B))— plying with this mandate would cripple small of a taxable year to which section 26(a)(2) ap- ‘‘(1) the last-in, first-out method of deter- businesses across my district and the Com- plies, if the credit allowable under sub- mining inventories shall in no event be monwealth. section (a) exceeds the limitation imposed by treated as clearly reflecting income, and section 26(a)(2) for such taxable year reduced ‘‘(2) sections 472 and 473 shall not apply.’’. I join with my constituents and all small by the sum of the credits allowable under (b) EFFECTIVE DATE.— business owners throughout the nation in sup- this subpart (other than this section), such port of repealing the onerous 1099 reporting (1) IN GENERAL.—The amendments made by excess shall be carried to the succeeding tax- this section shall apply to taxable years be- requirement. Furthermore, this debate is yet able year and added to the credit allowable ginning after December 31, 2014. under subsection (a) for such succeeding tax- another reminder as to why we need to repeal (2) CHANGE IN METHOD OF ACCOUNTING.—In the jobs-destroying health care bill and begin able year. the case of any taxpayer required by the the process of methodically and thoughtfully ‘‘(2) RULE FOR OTHER YEARS.—In the case of amendments made by this section to change reforming the health care system in an open a taxable year to which section 26(a)(2) does its method of accounting for its first taxable not apply, if the credit allowable under sub- and transparent manner, taking into account year beginning after December 31, 2014— section (a) exceeds the limitation imposed by (A) such change shall be treated as initi- viewpoints from both sides of the aisle. Most section 26(a)(1) for such taxable year reduced importantly though, we must take into account ated by the taxpayer, by the sum of the credits allowable under (B) such change shall be treated as made the voice of the American people. This was this subpart (other than this section), such with the consent of the Secretary of the omitted from the process a year ago, and excess shall be carried to the succeeding tax- Treasury, and today we begin process of cleaning up the able year and added to the credit allowable (C) if the net amount of the adjustments mess that occurs when this omission happens. under subsection (a) for such succeeding tax- required to be taken into account by the tax- able year.’’. 1300 payer under section 481 of the Internal Rev- b (b) CONFORMING AMENDMENTS.— enue Code of 1986 is positive, such amount The SPEAKER pro tempore. Pursu- (1) Section 24(b)(3)(B) of such Code is shall be taken into account over a period of ant to House Resolution 129, the pre- amended by inserting ‘‘25E,’’ after ‘‘25D,’’. 8 years beginning with such first taxable (2) Section 25(e)(1)(C) of such Code is year. vious question is ordered on the bill, as amended by inserting ‘‘25E,’’ after ‘‘25D,’’ amended. both places it appears. Mr. MCNERNEY (during the reading). The question is on the engrossment (3) Section 25A(i)(5)(B) of such Code is Madam Speaker, I ask unanimous con- and third reading of the bill. amended by inserting ‘‘25E,’’ after ‘‘25D,’’. sent to dispense with the reading.

VerDate Mar 15 2010 01:31 Mar 04, 2011 Jkt 099060 PO 00000 Frm 00023 Fmt 7634 Sfmt 0634 E:\CR\FM\A03MR7.025 H03MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE H1550 CONGRESSIONAL RECORD — HOUSE March 3, 2011 The SPEAKER pro tempore. Is there Mr. MCNERNEY. This motion to re- Oil companies have earned record objection to the request of the gen- commit addresses the pay-for in the profits over the last few years, and it’s tleman from California? bill. just unacceptable for them to take ad- Mr. CAMP. I object. The SPEAKER pro tempore. The gen- vantage of the special loopholes when The SPEAKER pro tempore. Objec- tleman from California may proceed. the middle class is struggling. tion is heard. Mr. MCNERNEY. Madam Speaker, I Mr. CAMP. Madam Speaker, the gen- The Clerk will continue to read. am a former small business owner, and tleman is not addressing the point of Mr. MCNERNEY (during the reading). while I strongly supported our efforts order. Madam Speaker, once again I ask to reform the health care—— The SPEAKER pro tempore. The gen- unanimous consent to dispense with Mr. CAMP. Madam Speaker, regular tleman from California has not spoken the reading. order. The gentleman is not addressing directly to the procedural question of The SPEAKER pro tempore. Is there the point of order. order. The Chair will now recognize objection to the request of the gen- The SPEAKER pro tempore. The other Members. tleman from California? Chair will hear the gentleman from The Chair recognizes the gentleman Mr. CAMP. I object. California. from New York. The SPEAKER pro tempore. Objec- Mr. LEVIN. I urge the gentleman Mr. CROWLEY. Thank you for allow- tion is heard. from Michigan to let him—— ing me to address the point of order. The Clerk will continue to read. Mr. CAMP. Regular order, Madam Madam Speaker, the rules of the House give a modicum of support to POINT OF ORDER Speaker. the minority to offer motions to ad- Mr. CAMP. Madam Speaker, I insist The SPEAKER pro tempore. Mem- dress a different point of view on legis- on my point of order. bers will suspend. lation, albeit in the form of a motion I make a point of order against the The Chair recognizes the gentleman to recommit. The rules of the House, motion because it violates clause 10 of from California. Madam Speaker, allow for the minor- rule XXI, as it has the net effect of in- Mr. MCNERNEY. We have a paid-for ity to express that point through the creasing mandatory spending within tax cut that’s germane and included in motion. the time period set forth in the rule. the motion to recommit. In this motion to recommit, as has I ask for a ruling of the Chair. The SPEAKER pro tempore. The gen- been placed forward by the gentleman The SPEAKER pro tempore. Does tleman may proceed, but the Chair will from California, it is a simple choice any Member wish to be heard on the hear argument from all Members on between the oil companies and the point of order? the point of order only. middle class: Side with the oil compa- The Chair recognizes the gentleman The gentleman from California con- tinues to be recognized. nies or side with the middle class. from California. The SPEAKER pro tempore. The gen- Mr. MCNERNEY. Madam Speaker, Mr. MCNERNEY. While I strongly supported our efforts to reform the tleman will suspend. The gentleman is everyone knows that times are tough not addressing the procedural issues and that individuals, families, and health care system, I also supported re- pealing the 1099 reporting requirement. raised by the point of order. small businesses are having a difficult Mr. CROWLEY. Madam Speaker, if I time making ends meet. That’s why This requirement will negatively affect small businesses’ ability to operate can, I am addressing the rules of the it’s so important that we provide small House that allow for the minority to businesses, which are the backbone of smoothly and efficiently. There is a broad bipartisan consensus on this have an opportunity to make a motion our economy, with the tools to suc- to recommit. It may not be in ceed. point, and I have received many emails, phone calls and letters from agreeance with the majority. We un- The SPEAKER pro tempore. Does the derstand that. They may not like the gentleman wish to address the point of constituents in my district who oppose the 1099 reporting requirement. motion to recommit. We understand order? that. They may not like the motion to Mr. MCNERNEY. Yes, the gentleman I support repealing the 1099 provi- sion—— recommit under the rule because it wishes to address the point of order. touches onto an area that they are not The SPEAKER pro tempore. The The SPEAKER pro tempore. The gen- tleman will suspend. comfortable with, that is, taxing oil Chair will hear the gentleman. companies. Mr. MCNERNEY. With rising prices Remarks must be confined to the procedural issue at hand. The SPEAKER pro tempore. The gen- of gasoline, and unemployment that re- tleman is not addressing the proce- mains far too high, helping small busi- Mr. MCNERNEY. We have a paid for tax cut that is in order. dural issue. nesses is more important than ever. Mr. CROWLEY. I am addressing the The SPEAKER pro tempore. Does Mr. CAMP. Madam Speaker, the gen- rules of the House, Madam Speaker. any other Member wish to be heard on tleman is not addressing the point of The SPEAKER pro tempore. The gen- the point of order? order. tleman is not sticking to the precise The Chair recognizes the gentleman procedural question at hand, which is b 1310 from Michigan. clause 10 of rule XXI. The SPEAKER pro tempore. Does the Mr. LEVIN. The gentleman wishes to Mr. CAMP. I would ask the Chair to gentleman from California wish to ad- proceed. The gentleman from Cali- rule, Madam Speaker. dress the specific point of order? fornia wishes to proceed. Mr. LEVIN. Madam Speaker, I wish Does any other Member wish to ad- The SPEAKER pro tempore. The gen- to be heard. dress the point of order? tleman must speak to the specific pro- The SPEAKER pro tempore. Does The Chair recognizes the gentleman cedural question. any Member in the body wish to be from Michigan. Mr. LEVIN. And he says he is doing heard on the point of order under Mr. LEVIN. Madam Speaker, the gen- so. He is saying he is doing so. clause 10 of rule XXI specifically? tleman from California was addressing The SPEAKER pro tempore. There Mr. LEVIN. Yes, I do. the point of order. I think he should be seems to be some question of that. The SPEAKER pro tempore. The allowed to do so. The gentleman from California may Chair recognizes the gentleman from The SPEAKER pro tempore. The gen- proceed. Michigan. tleman from California may be heard Mr. MCNERNEY. I stand here to offer Mr. LEVIN. Madam Speaker, the only on the point of order and may a better alternative. It’s paid for. In- rules of the House, as crafted by the continue if he is speaking directly to stead of simply agreeing to the major- majority, do make it difficult for us to the point of order. ity’s bill, the motion to recommit craft motions to recommit that are Mr. MCNERNEY. Madam Speaker, would repeal the 1099 requirement and germane. this directly addresses the tax provi- provide a new tax cut to the middle- I submit this is, and I think you sion in the Republican bill. class paid for by closing tax loopholes should listen to us before you make a The SPEAKER pro tempore. The gen- exploited by large oil companies. It’s ruling. You are the Speaker of the tleman from California may proceed. paid for and it’s germane. House, acting in that capacity.

VerDate Mar 15 2010 02:54 Mar 04, 2011 Jkt 099060 PO 00000 Frm 00024 Fmt 7634 Sfmt 0634 E:\CR\FM\K03MR7.045 H03MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE March 3, 2011 CONGRESSIONAL RECORD — HOUSE H1551 This motion would cut taxes, would Barletta Graves (GA) Paul Engel Loebsack Ross (AR) Bartlett Graves (MO) Paulsen Eshoo Lofgren, Zoe Rothman (NJ) end oil subsidies, and ensure more Barton (TX) Griffin (AR) Pearce Farr Lowey Roybal-Allard Americans have health insurance. It is Bass (NH) Griffith (VA) Pence Fattah Luja´ n Ruppersberger germane. The Republicans should not Benishek Grimm Peterson Filner Lynch Rush try to gag us. Berg Guinta Petri Frank (MA) Maloney Ryan (OH) Biggert Guthrie Pitts Fudge Markey Sanchez, Loretta I urge that the Speaker rule this in Bilbray Hall Platts Garamendi Matheson Sarbanes order. Bilirakis Harper Poe (TX) Gonzalez Matsui Schakowsky Mr. CAMP. Madam Speaker, I would Bishop (UT) Harris Pompeo Green, Al McCarthy (NY) Schiff ask the Chair to rule. Black Hartzler Posey Green, Gene McCollum Schrader Blackburn Hastings (WA) Price (GA) Grijalva McDermott Schwartz The SPEAKER pro tempore. The Bonner Hayworth Quayle Gutierrez McGovern Scott (VA) Chair has heard enough and is prepared Bono Mack Heck Reed Hanabusa McIntyre Scott, David to rule at this time. Boren Heller Rehberg Hastings (FL) McNerney Serrano Boustany Hensarling Reichert Heinrich Meeks Sewell Mr. WEINER. Madam Chair, point of Brady (TX) Herger Renacci Higgins Michaud Sherman order. Brooks Herrera Beutler Ribble Himes Miller (NC) Shuler The SPEAKER pro tempore. Does the Broun (GA) Huelskamp Rigell Hinchey Miller, George Sires Hirono Moore Slaughter gentleman from York have a point of Buchanan Huizenga (MI) Rivera Bucshon Hultgren Roby Holden Moran Smith (WA) order? Buerkle Hunter Roe (TN) Holt Murphy (CT) Stark Mr. WEINER. Madam Speaker, Mem- Burgess Hurt Rogers (AL) Honda Nadler Sutton Burton (IN) Issa Rogers (KY) Inslee Napolitano Thompson (CA) bers should have an opportunity to be Calvert Jenkins Israel Neal Thompson (MS) heard on the point of order. Just be- Rogers (MI) Camp Johnson (IL) Rohrabacher Jackson (IL) Olver Tierney cause one person you might feel didn’t Campbell Johnson (OH) Rokita Jackson Lee Owens Tonko address it doesn’t mean all of us should Canseco Johnson, Sam Rooney (TX) Pallone Towns Cantor Jones Johnson (GA) Pascrell Tsongas be prejudiced in our opportunity to Ros-Lehtinen Capito Kelly Roskam Johnson, E. B. Pastor (AZ) Van Hollen Kaptur ´ speak. Carter King (IA) Ross (FL) Payne Velazquez Keating Pelosi Visclosky The SPEAKER pro tempore. Argu- Cassidy King (NY) Royce Kildee Perlmutter Walz (MN) Chabot Kingston Runyan ment is at the discretion of the Chair, Kind Peters Wasserman Chaffetz Kinzinger (IL) Ryan (WI) to edify her judgment. Coble Kline Kissell Pingree (ME) Schultz Scalise Coffman (CO) Labrador Kucinich Polis Waters The Chair finds that it is time to now Schilling Cole Lamborn Langevin Price (NC) Watt rule on the point of order. Schmidt Conaway Lance Larsen (WA) Quigley Waxman Schock The gentleman from Michigan makes Cravaack Landry Larson (CT) Rahall Welch Schweikert Crawford Lankford Lee (CA) Rangel Wilson (FL) a point of order that the motion offered Scott (SC) Crenshaw Latham Levin Reyes Woolsey by the gentleman from California vio- Scott, Austin Cuellar LaTourette Lewis (GA) Richardson Wu Sensenbrenner lates clause 10 of rule XXI by proposing Culberson Latta Lipinski Richmond Yarmuth Sessions an increase in mandatory spending Davis (KY) Lewis (CA) Shimkus Denham LoBiondo NOT VOTING—8 over a relevant period of time. Shuster Pursuant to clause 10 of rule XXI and Dent Long Becerra Hinojosa Sa´ nchez, Linda DesJarlais Lucas Simpson Giffords Hoyer T. clause 4 of rule XXIX, the Chair is au- Diaz-Balart Luetkemeyer Smith (NE) Hanna Jordan Speier thoritatively guided by estimates from Dold Lummis Smith (NJ) Dreier Lungren, Daniel Smith (TX) b 1343 the chair of the Committee on the Southerland Duffy E. Mr. LYNCH, Ms. PINGREE of Maine, Budget that the net effect of the provi- Duncan (SC) Mack Stearns sions in the amendment would increase Duncan (TN) Manzullo Stivers Messrs. DeFAZIO, ELLISON, WAX- mandatory spending over a relevant pe- Ellmers Marchant Stutzman MAN, and Ms. BERKLEY changed their Emerson Marino Sullivan vote from ‘‘yea’’ to ‘‘nay.’’ riod as compared to the bill. Terry Farenthold McCarthy (CA) Messrs. ALTMIRE, HUIZENGA of Accordingly, the point of order is Fincher McCaul Thompson (PA) sustained and the motion is not in Fitzpatrick McClintock Thornberry Michigan, and MARCHANT changed order. Flake McCotter Tiberi their vote from ‘‘nay’’ to ‘‘yea.’’ Fleischmann McHenry Tipton Mr. LEVIN. Madam Speaker, I appeal So the motion to table was agreed to. Fleming McKeon Turner The result of the vote was announced the ruling of the Chair. Flores McKinley Upton as above recorded. The SPEAKER pro tempore. The Forbes McMorris Walberg Walden A motion to reconsider was laid on question is, Shall the decision of the Fortenberry Rodgers Foxx Meehan Walsh (IL) the table. Chair stand as the judgment of the Franks (AZ) Mica Webster Stated against: House? Frelinghuysen Miller (FL) Weiner Gallegly Miller (MI) West Mr. BECERRA. Mr. Speaker, earlier today I MOTION TO TABLE Gardner Miller, Gary Westmoreland was unavoidably detained and missed rollcall Mr. CAMP. Madam Speaker, I move Garrett Mulvaney Whitfield vote 161. If present, I would have voted ‘‘no’’ to lay the appeal on the table. Gerlach Murphy (PA) Wilson (SC) on rollcall vote 161. Gibbs Myrick Wittman The SPEAKER pro tempore. The Gibson Neugebauer Wolf ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE question is on the motion to table. Gingrey (GA) Noem Womack The SPEAKER pro tempore. Mem- The question was taken; and the Gohmert Nugent Woodall bers should be aware that debate on a Goodlatte Nunes Yoder Speaker pro tempore announced that Gosar Nunnelee Young (AK) point of order is solely to edify the the noes appeared to have it. Gowdy Olson Young (FL) judgment of the presiding officer. As Mr. CAMP. Madam Speaker, on that Granger Palazzo Young (IN) such, argument on a point of order I demand the yeas and nays. must be confined to the question of The yeas and nays were ordered. NAYS—181 order and may not range to an under- The SPEAKER pro tempore. Pursu- Ackerman Cardoza Costello lying substantive question. The Chair Andrews Carnahan Courtney ant to clause 9 of rule XX, this 15- Baca Carney Critz endeavors to hear such arguments as minute vote on the motion to table Baldwin Carson (IN) Crowley may tend to edify her judgment, but will be followed by a 5-minute vote on Barrow Castor (FL) Cummings when she is prepared to rule, she may passage of the bill, if arising without Bass (CA) Chandler Davis (CA) decline to hear more. Berkley Chu Davis (IL) further proceedings in recommittal. Berman Cicilline DeFazio The optimal accommodation of Mem- The vote was taken by electronic de- Bishop (GA) Clarke (MI) DeGette bers’ desires to argue on a point of vice, and there were—yeas 243, nays Bishop (NY) Clarke (NY) DeLauro order can be achieved only when, first, Blumenauer Clay Deutch 181, not voting 8, as follows: Boswell Cleaver Dicks those seeking recognition for that pur- [Roll No. 161] Brady (PA) Clyburn Dingell pose properly confine themselves to the Braley (IA) Cohen Doggett YEAS—243 question of order; and, second, those Brown (FL) Connolly (VA) Donnelly (IN) who believe they have heard enough Adams Alexander Austria Butterfield Conyers Doyle Aderholt Altmire Bachmann Capps Cooper Edwards leave it to the presiding officer to de- Akin Amash Bachus Capuano Costa Ellison cide when she has heard enough.

VerDate Mar 15 2010 01:54 Mar 04, 2011 Jkt 099060 PO 00000 Frm 00025 Fmt 7634 Sfmt 0634 E:\CR\FM\K03MR7.060 H03MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE H1552 CONGRESSIONAL RECORD — HOUSE March 3, 2011 The Chair enlists the understanding that we have that says that the move- The SPEAKER pro tempore. The and cooperation of all Members in ment within tax brackets is subject to Chair recognizes the gentleman from these matters. a higher order. Michigan. The question is on the passage of the Let me also make this argument in Mr. CAMP. Madam Speaker, I would bill. support of the point of order. refer the Members of the House to the The question was taken; and the Mr. TERRY. Objection. The gen- committee report in this area, and in Speaker pro tempore announced that tleman from New York is not speaking that committee report it states: The the ayes appeared to have it. to the point of order. committee has carefully reviewed the POINT OF ORDER Mr. WEINER. The gentleman from provisions of the bill and states that Mr. WEINER. Madam Speaker, I rise Nebraska does not control the time. the provisions of this bill do not in- to a point of order. Point of order. I am on my feet to a volve any Federal income tax rate in- The SPEAKER pro tempore. The gen- point of order. I cannot be taken off my creases within the meaning of the rule. tleman will state his point of order. feet by anyone except the Chair. I I would say that the rules of the Mr. WEINER. Madam Speaker, the would urge the respect of the gen- House in this area refer to specific sec- voice vote we just took violates clause tleman. tions of the Internal Revenue Code. 5(b) of rule XXI, and this vote shall be The SPEAKER pro tempore. The Also, the rules of the House—and I taken with a three-fifths required for Chair will continue to hear the gen- would say my friends are not going far passage. tleman from New York. enough in their reading of the rules— Mr. WEINER. The reason this is so The SPEAKER pro tempore. Does define exactly what an income tax in- important and that we enforce it now any Member wish to speak to the point crease is. This bill does not amend is, just as we all have in our rules the of order? those specific sections of the Code that Mr. WEINER. Madam Speaker, I do. annotations of when this rule has been are referred to in the rules. Accord- The SPEAKER pro tempore. The gen- bent and broken, we don’t want at the ingly, a point of order does not lie. tleman from New York is recognized to beginning of this Congress one of the Mr. LEVIN. Madam Speaker, I would speak on the point of order. earliest actions we do to be to bend and like to be heard. Mr. WEINER. Thank you. break and leave in shatters the three- The SPEAKER pro tempore. The Madam Speaker, as we all know here, fifths requirement. Chair recognizes the gentleman from we have a special rule in the House. As You might believe it’s a good thing Michigan. I just referenced, it is clause 5(b) of to do. I just think there should be at Mr. LEVIN. I just want to read from rule XXI, which was put into the rules least three-fifths of us, under the rules the bill: of the House to make it extraordinarily that we agreed upon, to raise the tax ‘‘If the advance payments to a tax- difficult for us to change tax rates. The bracket, particularly since it’s on mid- payer exceed the credit allowed by this reason we did that was out of a bipar- dle class Americans. When you’re mak- section, the tax imposed by this chap- tisan consideration that we wanted to ing 80-some-odd thousand dollars a ter for the taxable year shall be in- make sure that legislation we did here year and you make an extra $200 in in- creased.’’ didn’t have the effect, under the ruse of come, they want to increase your tax Mr. GOHMERT. Madam Speaker, I some other action, of changing effec- bracket. If we’re going to do that, let’s wish to be heard on the point of order. tive tax rates for people. So this rule make sure it’s with a three-fifths ma- The SPEAKER pro tempore. The was put into place which said, if you’re jority. Chair recognizes the gentleman from I urge that the point of order be going to do that, you need to have a Texas. upheld and that we have to vote on this Mr. GOHMERT. Madam Speaker, the three-fifths majority. This bill that we by three-fifths. point of order began with the words are considering now is, by its action, The SPEAKER pro tempore. Does the ‘‘whether or not.’’ No point of order changing people’s effective tax rates. gentleman from New York (Mr. CROW- can begin with the words ‘‘whether or I’ll try to be brief. It’s just that I LEY) wish to be heard on the point of not.’’ know many Members hadn’t been order? The SPEAKER pro tempore. The tuned into the debate, and I want to Mr. CROWLEY. On the point of Chair is prepared to rule. explain this point. order, Madam Speaker, specifically, let Mr. WEINER. Madam Speaker, may I What the bill would do if it were to me just clarify for my friends on the be heard further on the gentleman be passed would be to say, if someone other side, and for those on our side of from Michigan’s point? had a marginal increase in their in- the aisle as well—for all Members of The SPEAKER pro tempore. The come that took them up into the next the House—that clause 5(b) of rule XXI Chair recognizes the gentleman from bracket, they would lose, not only the states that passage, again, of a tax in- New York. subsidy provided under the health care crease needs a three-fifths majority of Mr. WEINER. Let me just say very act to buy insurance, but in its en- those present for passage if we are briefly, the gentleman from Michigan tirety a $200 increase above the bracket changing the tax rates or the brackets is correct. We don’t directly do what is would essentially put them into a dif- of individuals. described in the rule, but the effect is ferent tax bracket. This is exactly that it is indisputable that someone what this rule was intended to pre- b 1350 who is in one tax bracket after this bill vent—our taking an action that unwit- I know it’s not, again, comfortable, will move into another one. tingly changes where people’s tax rates but as the example I laid out in the de- The purpose of this rule, and clearer are without our actually having to bate, which was not refuted by anyone, from the annotations—we’re trying to stand up and do it. if an individual earning $88,000 from a look at the purpose of this rule, and This rule puts a pretty strong level of family of four receives a $250 bonus, the reason we have the Speaker inter- test into place for us. It says we need a that would require them to pay $4,460 preting the rule is to prevent that from three-fifths majority. It is very dif- in tax. That is, indeed, a new tax; and, happening. And if it’s good for the ficult for the Chair to rule about a therefore, it should be subject to this goose, it’s good for the gander. three-fifths, A, on a voice vote. Sec- rule that we would require three-fifths. You’re going to see it happening a lot ondly, I want to be sure that if we go I know it’s hard, because that’s the this term. to what is certainly going to be a re- difficulty of this in changing the tax Mr. CROWLEY. Madam Speaker, I corded vote that—— rates. It should be difficult. That’s the would like to be heard. Mr. TERRY. Objection. The gen- rule to make this bipartisan. We do The SPEAKER pro tempore. The tleman from New York is not speaking this together, a three-fifths vote. Chair recognizes the gentleman from to the point of order. And, Madam Speaker, we are chang- New York for a brief moment. Mr. WEINER. First of all, I can be ac- ing the tax rates. We are changing the Mr. CROWLEY. Does the committee cused of a lot of things. Not speaking brackets; and, therefore, this rule report get to waive the House rules? to the point of order isn’t one of them. ought to be imposed. The committee report? That’s the evi- Madam Speaker, this point of order Mr. CAMP. Madam Speaker, I wish to dence to waive the House rules? That’s is specifically whether or not the rule be heard. a new low standard.

VerDate Mar 15 2010 02:54 Mar 04, 2011 Jkt 099060 PO 00000 Frm 00026 Fmt 7634 Sfmt 0634 E:\CR\FM\K03MR7.050 H03MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE March 3, 2011 CONGRESSIONAL RECORD — HOUSE H1553 The SPEAKER pro tempore. The Green, Gene Matheson Roskam Ryan (OH) Sutton Wasserman Chair is prepared to rule. Griffin (AR) McCarthy (CA) Ross (AR) Sarbanes Thompson (CA) Schultz Griffith (VA) McCarthy (NY) Ross (FL) Schakowsky Thompson (MS) Waters Since the 105th Congress, the require- Grimm McCaul Royce Schwartz Tierney Watt ment in clause 5(b) of rule XXI for a Guinta McClintock Runyan Scott (VA) Tonko Waxman three-fifths vote on certain tax meas- Guthrie McCotter Ruppersberger Serrano Towns Weiner Hall McHenry Sherman Tsongas Wilson (FL) ures has comprised the three elements Ryan (WI) Harper McIntyre Sanchez, Loretta Stark Van Hollen Woolsey described by Speaker pro tempore Harris McKeon Scalise NOT VOTING—6 Baldwin in the ruling of January 18, Hartzler McKinley Schiff Hastings (WA) McMorris Schilling Giffords Jordan Speier 2007. ´ Hayworth Rodgers Schmidt Hanna Sanchez, Linda The first element of the requirement Heck McNerney Schock Hinojosa T. Heinrich Meehan is that the measure amends one of the Schrader Heller Mica b 1412 subsections of the Internal Revenue Schweikert Hensarling Miller (FL) So the bill was passed. Code of 1986 that are cited in the rule. Herger Miller (MI) Scott (SC) The second element is that the meas- Herrera Beutler Miller, Gary Scott, Austin The result of the vote was announced Scott, David ure does so by imposing a new percent- Higgins Mulvaney as above recorded. Himes Murphy (PA) Sensenbrenner A motion to reconsider was laid on age as a rate of tax. The third element Holden Myrick Sessions is that in doing so the measure in- Huelskamp Neugebauer Sewell the table. creases the amount of tax imposed by Huizenga (MI) Noem Shimkus f Shuler any of those cited subsections of the Hultgren Nugent Hunter Nunes Shuster LEGISLATIVE PROGRAM Code. Simpson Hurt Nunnelee (Mr. HOYER asked and was given The Chair is unable to find a provi- Inslee Olson Sires permission to address the House for 1 sion in the pending bill—H.R. 4, as per- Israel Owens Slaughter Issa Palazzo Smith (NE) minute.) fected—that fulfills even the first ele- Jenkins Pastor (AZ) Smith (NJ) Mr. HOYER. Mr. Speaker, I yield to ment of the requirement. Johnson (IL) Paul Smith (TX) my friend, the majority leader, to ask A bill that does not meet any one of Johnson (OH) Paulsen Smith (WA) about the schedule for the coming the three elements required by clause Johnson, Sam Pearce Southerland Jones Pence Stearns week. 5(b) of rule XXI does not carry a Fed- Keating Perlmutter Stivers Mr. CANTOR. I thank the Demo- eral income tax rate increase within Kelly Peters Stutzman cratic whip, the gentleman from Mary- the meaning of that rule. King (IA) Peterson Sullivan King (NY) Petri land, for yielding. Accordingly, the Chair holds that a Terry Kingston Pingree (ME) Thompson (PA) Mr. Speaker, on Tuesday the House majority vote is sufficient to pass the Kinzinger (IL) Pitts Thornberry will meet at 2 p.m. for morning hour pending bill, and the Chair properly an- Kissell Platts Tiberi Kline Poe (TX) Tipton and 4 p.m. for legislative business. On nounced a majority-based result on the Labrador Pompeo Wednesday, the House will meet at 10 voice vote on passage. Turner Lamborn Posey Upton a.m. for legislative business, and recess RECORDED VOTE Lance Price (GA) Vela´ zquez Landry Price (NC) immediately. The House will reconvene Visclosky Mr. CAMP. Madam Speaker, I de- Langevin Quayle Walberg at approximately 11 a.m. for the pur- Lankford Quigley mand a recorded vote. Walden pose of receiving, in a joint meeting Larsen (WA) Rahall The SPEAKER pro tempore. A re- Walsh (IL) Latham Reed with the Senate, the Honorable Julia Walz (MN) corded vote is requested on passage of LaTourette Rehberg Gillard, Prime Minister of Australia. the bill. Latta Reichert Webster Welch On Thursday, the House will meet at 10 A recorded vote was ordered. Lewis (CA) Renacci a.m. for morning hour and noon for leg- Lipinski Reyes West The vote was taken by electronic de- LoBiondo Ribble Westmoreland islative business. On Friday, the House vice, and there were—ayes 314, noes 112, Loebsack Richardson Whitfield will meet at 9 a.m. for legislative busi- not voting 6, as follows: Long Rigell Wilson (SC) ness, with last votes expected by 3 p.m. Lucas Rivera Wittman [Roll No. 162] Luetkemeyer Roby Wolf The House will consider a few bills AYES—314 Lummis Roe (TN) Womack under suspension of the rules on Tues- Lungren, Daniel Rogers (AL) Woodall day and possibly Wednesday, which Adams Burgess Dent E. Rogers (KY) Wu will be announced by the close of busi- Aderholt Burton (IN) DesJarlais Mack Rogers (MI) Yarmuth Akin Butterfield Diaz-Balart Maloney Rohrabacher Yoder ness tomorrow. The House will also Alexander Calvert Dold Manzullo Rokita Young (AK) consider two bills that were marked up Altmire Camp Donnelly (IN) Marchant Rooney Young (FL) by the Financial Services Committee Amash Campbell Dreier Marino Ros-Lehtinen Young (IN) Andrews Canseco Duffy today: H.R. 836, the Emergency Mort- Austria Cantor Duncan (SC) NOES—112 gage Relief Program Termination Act, Baca Capito Duncan (TN) and H.R. 830, the FHA Refinance Pro- Bachmann Cardoza Ellmers Ackerman Engel Lofgren, Zoe Bachus Carnahan Emerson Baldwin Eshoo Lowey gram Termination Act. These bills will Barletta Carney Farenthold Bass (CA) Farr Luja´ n eliminate two ineffective mandatory Barrow Carter Fincher Becerra Fattah Lynch programs that, without congressional Bartlett Cassidy Fitzpatrick Berman Filner Markey Barton (TX) Castor (FL) Flake Blumenauer Frank (MA) Matsui action, will continue spending on auto- Bass (NH) Chabot Fleischmann Brady (PA) Fudge McCollum pilot. Benishek Chaffetz Fleming Brown (FL) Garamendi McDermott The House has already had a robust Berg Chandler Flores Capps Grijalva McGovern debate on the discretionary side of Fed- Berkley Cicilline Forbes Capuano Gutierrez Meeks Biggert Coble Fortenberry Carson (IN) Hanabusa Michaud eral spending, Mr. Speaker, and will Bilbray Coffman (CO) Foxx Chu Hastings (FL) Miller (NC) continue to do so, but it’s time we turn Bilirakis Cohen Franks (AZ) Clarke (MI) Hinchey Miller, George our attention also to the mandatory Bishop (GA) Cole Frelinghuysen Clarke (NY) Hirono Moore Bishop (NY) Conaway Gallegly Clay Holt Moran side of government spending. I expect Bishop (UT) Connolly (VA) Gardner Cleaver Honda Murphy (CT) further debate on mandatory spending Black Cooper Garrett Clyburn Hoyer Nadler throughout the month of March. Blackburn Costa Gerlach Conyers Jackson (IL) Napolitano Mr. HOYER. I thank the gentleman Bonner Costello Gibbs Crowley Jackson Lee Neal Bono Mack Courtney Gibson Cummings (TX) Olver for that information. He mentions that Boren Cravaack Gingrey (GA) Davis (IL) Johnson (GA) Pallone we will be considering some bills under Boswell Crawford Gohmert DeGette Johnson, E. B. Pascrell suspension, as is normal, and two bills, Boustany Crenshaw Gonzalez DeLauro Kaptur Payne Brady (TX) Critz Goodlatte Deutch Kildee Pelosi H.R. 836 and H.R. 830, presumably Braley (IA) Cuellar Gosar Dicks Kind Polis under a rule. Brooks Culberson Gowdy Dingell Kucinich Rangel I ask the gentleman, will those be Broun (GA) Davis (CA) Granger Doggett Larson (CT) Richmond open rules? And before I yield to him Buchanan Davis (KY) Graves (GA) Doyle Lee (CA) Rothman (NJ) Bucshon DeFazio Graves (MO) Edwards Levin Roybal-Allard for his response, I want to say that I Buerkle Denham Green, Al Ellison Lewis (GA) Rush want to congratulate the gentleman on

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