Congresswoman Carol Miller (R – W. Va.) is leading the charge to repeal the onerous IRS 1099-K paperwork burden imposed by Democrats. Her legislation — endorsed by Americans for Tax Reform — would repeal the Democrats’ 1099-K threshold of $600 and restore the original thresholds of $20,000 AND 200 transactions.
Congresswoman Miller discussed The Saving Gig Economy Taxpayers Act during ATR’s annual Tax Day press conference on April 18. Video of her remarks can be found here.
Congresswoman Miller said:
“The contrast between the Tax Cuts and Jobs Act and the American Rescue Plan is ridiculous. The Tax Cuts and Jobs Act worked for the American people while the American Rescue Plan Act created tax hikes that actively take money out of the pockets of the American worker.
For the past two years. I have been working with the Republicans to fix another law that needlessly tax hardworking Americans and independent contractors who use online services, payment platforms and marketplaces. I reintroduced the Saving Gig Economy Taxpayers Act to repeal an unfair tax hike that the American Rescue Plan used to target the income of people selling items online and using online payment platforms. President Biden is targeting Americans who are trying to make ends meet by unfairly classifying their normal sales and purchases as running a business, essentially raising taxes on people who are making a lot less than $400,000 a year.
Because of the Democrats’ law change in the 1099 form, someone who is selling, let’s say exercise equipment out of their garage online — they now qualify as the owner of an equipment corporation.
A teenager who is babysitting their neighbor’s children, they now qualify as a child care business. And a roommate who has other roommates and they’re all splitting their rent together, but they pay each other through Venmo or whatever, they are now property managers and they’re all eligible to be taxed by the IRS.
This overbearing and unnecessary tax provision only hurts. It never helps the Americans so much so that the IRS actually delayed implementing this because it was way too confusing and way too complicated. And you know, if the IRS is holding off on a law, it’s got to be bad because they do want your taxes.
My bill will return the 1099K reporting requirement to the time tested $20,000 and 200 separate transactions, from the Democrats’ budget gimmick which lowered the threshold to $600. This common sense bill will protect American paychecks and I look forward to delivering real results to the American people.”