e-News September 17, 2010

The Week Just Past: Congress Returns, Worry Continues
Obamacare’s Unseen Cost to Small Businesses
No Riders on Budget Bills
Rodney Remembers

The Week Just Past: Congress Returns, Worry Continues

“Congress returned to Washington this week after an unusually long six-week recess.  In addition to visiting our troops and our commanders in Afghanistan, I spent the last weeks of summer traveling across northern New Jersey, listening to people at town hall meetings, senior centers, street fairs and festivals and in my office. 

“What I heard over and over again from residents was that people continue to be very worried about jobs and the economy and how their families will be affected.

“In particular, many are concerned that the policies of the Obama Administration and the Pelosi Congress have paralyzed small businesses - out of control spending, government mandated healthcare, the threat of a national energy tax, the possibility of tax increases in January.  All of these policies are creating a paralysis in small business like they have never seen.
“And no single policy is having a greater effect on hindering job creation than the possibility of another tax increase in January.
“It is clear to me that higher taxes won't get anybody hired.  Raising taxes on job creators won't create jobs.

“And that is why it is so important that Congress acts quickly to cut federal spending and freeze current tax rates in place and prevent major tax hikes in January.

“The anxiety out there is real.  Two annual deficits in a row over a trillion dollars.  The highest debt in American history.  The ‘official’ unemployment hovering around 10%.  Three million people have lost their jobs.  Half of them have been out of work for a year.

“I agree with the people: something’s got to give. Acts of legislative desperation and more spending are not the answer!”

      Rodney Frelinghuysen

Obamacare’s Unseen Cost to Small Businesses

The U.S. Senate this week handed small businesses a double-barreled defeat when it rejected two attempts to save America’s small businesses from an approaching bureaucratic nightmare.  The Senate defeated two amendments that would have relieved small businesses from an onerous provision in the new health care law that requires them to file a “1099 form” with the Internal Revenue Service (IRS) for all purchases over $600!

Both large and small businesses will be required to inform the IRS of all previously exempt business expenses such as equipment purchases, shipping costs, telecommunications and internet charges, and hotel bills, among many others.  While not taking effect until 2012, businesses are already feeling the impact.

This consequence of passing a massive 3,000 page health care bill has now resulted in a paperwork nightmare for many businessmen and women.  The provision will also require businesses to obtain a Taxpayer Identification Number from their vendors for the vast majority of business expenses. 

“This is a prime example of Washington, DC being out of touch,” Rodney said.  “Some small businesses will be forced by the IRS to file hundreds of 1099s to the various people with whom they do business. They don’t have time or the manpower for that!  Filling out forms and shuffling paper doesn’t make money for anybody!

“Small business owners understand that raising the costs of doing business, whether it’s through tax increases or health care costs or new regulations, means less money that they can pay their employees and expand their operations. These are job-killing policies!” 

With this in mind, Rodney has cosponsored H.R. 5141, the Small Business Paperwork Reporting Elimination Act of 2010, which would repeal this section of the new health care law. 

In order to prompt passage of this repeal legislation, Rodney is collecting testimonials from New Jersey businesses on how this onerous new requirement will affect their operations.  Please visit">"> to pass along your views or your business’ “story” on this developing bureaucratic nightmare.  Rodney will pass them along to Speaker Pelosi and other Congressional leaders.

Recommended Reading:  Wednesday editorial in the Wall Street Journal, “The 1099 Insurrection, The White House fights an effort to ease a burden on small business.”

No Riders on Budget Bills

Rodney joined other members of the House Appropriations Committee this week in urging the House Leadership to prevent an upcoming “must pass” budget bill from being used as a “Christmas Tree” for expensive, unrelated, unnecessary and controversial legislation that otherwise could not be passed by Congress.  

 “Congress’ failure to complete its work should not be an open invitation for a free-for-all of spending,” Rodney said.  “It is simply unacceptable to use this ‘must-pass’ bill for more extreme spending or completing an array of unfinished political business.”

Due to the failure of the Congress to enact a single appropriations bill so far this year to provide funding for federal government programs and agencies, a temporary budget bill known as a “continuing resolution” will be necessary to extend government operations past September 30.

Read the AP’s story, “White House sends spending wish list to Congress” here.
Rodney Remembers

Statement of Rep. Rodney Frelinghuysen on the Floor of the House of Representatives during debate on House Resolution 1610, commemorating September 11, 2001:

September 14, 2010

“Madam Speaker, I rise in strong support of this resolution, and I commend Leader Hoyer and Leader Boehner for their leadership in presenting it to the House, as I fear that time and events may have dulled some memories. It was 9 years ago this past Saturday that our Nation changed forever, as violent international extremists struck in the streets of Lower Manhattan, the fields of Pennsylvania, and at the Pentagon. But we also saw good rise in the face of evil, and heroes rise in the face of danger.

“In Lower Manhattan, many of our brave first responders knew the risks they were taking, but they were determined to do their job. Police officers and EMS personnel calmly escorted workers out of burning buildings as firefighters raced up stairwells to rescue those trapped high above.

“When the day was over, and as we learned more about the tragic, and yes, murderous attacks and loss of nearly 3,000 Americans, including 700 New Jerseyans, we witnessed neighbors and friends consoling one another and watched as Americans from all walks of life stood united, side by side waving the Stars and Stripes, and lighting candles to honor those missing or lost.

“As America rebounded, we responded to these acts of terrorism with the skill and spirit of our military and our intelligence community. The war we continue to fight abroad today began before September 11, 2001. It began without provocation and without warning. It was not a war of our choosing but rather was made our priority. It was the slaughter of innocents by people with a twisted sense of religion who play by no rules.

“So many of our heroes currently fighting terrorism across the globe put their lives on hold on September 11, 2001, to join the National Guard and Reserve, serve our country, and defend our freedom. They serve side by side as we speak with the active duty military, all volunteers, all dedicated, all courageous, all Americans. We see the character and resolve of America in these brave young men and women. And we are grateful for their service and sacrifice, and that of their families, each and every day. They truly are doing the work of freedom and deserve our support and prayers.

“May God bless those who continue to defend our freedom, and may God continue to bless America.”

Recommended Reading III: William Broad writing in Saturday’s New York Times, “China Explores a Frontier 2 Miles Deep.” Even more reasons to invest in a strong national defense and research and development in outer space and beneath the ocean surface.  Read the article here.