spot_img

Schweikert tax bill would increase contractor filing threshold eight-fold

Date:

spot_img

(The Center Square)— Arizona Rep. David Schweikert is looking to shake up federal tax policy for small business owners.

The Phoenix area lawmaker introduced a bill in June looking to increase the amount required for a business to pay before a 1099 form needs to be filled out from $600 to $5,000. Companies will typically issue a 1099 tax form to contractors who make over $600 so they can pay self-employment, or other small business tax, on their earnings.

Schweikert told The Center Square on Wednesday that the bill, known as Small Business Paperwork Savings Act, may actually garner bipartisan support.

“Oddly enough, this is one that I actually think will make it through the process. I’ve had multiple conversations with folks on the Democrat side, and they actually also see the reality of a $600 threshold. It basically makes almost every American out of compliance,” he said.

“It hasn’t been inflation adjusted ever. And if you inflation adjust, it actually would be over $5,000 today,” he later added. “So this law’s been around that long. So that’s what we’re doing. We’re trying to make it a more rational system so, you know, the majority of us in our society aren’t actually breaking the law.”

Some business leaders in Arizona also agree with the legislation’s mission to cut back on added steps for workers who are receiving a relatively small amount of money.

“Onerous paperwork is just one of the many challenges our small business owners face when dealing with the administrative tasks of owning and operating a business,” Chad Heinrich, Arizona state director for the National Federation of Independent Business, told The Center Square. “This legislation would help ease the paperwork burden of our job creators. We appreciate Rep. Schweikert for listening to NFIB members in field hearings across the country.”

H.R. 3991 has been referred to the House Ways and Means Committee, which Schweikert serves on. Ten other Republicans cosponsored the legislation.

Read the Black Chronicle Black History Edition for Free! Click Below

Read the Black Chronicle Black History Edition for Free! Click Below

spot_img
spot_img

Subscribe

Share post:

Popular

More like this
Related

Medical group backs decriminalization of opioid for addiction treatment

(The Center Square) – A leading medical group has...

Pritzker says bump stock ruling won’t affect Illinois

(The Center Square) – In the wake of the...

What should taxpayers expect from their jails?

(The Center Square) — While jails take up a...