Southern West Virginia News

WASHINGTON, D.C. - Last week, the Committee on Ways and Means passed three major bill packages, including Congresswoman Carol Miller’s (R-WV) bill The Saving Gig Economy Taxpayers Act.  

For the past two years, Congresswoman Miller has been working with Republicans to fix another liberal tax increase in the American Rescue Plan which targets hardworking taxpayers and independent contractors who use online services, payment platforms, and marketplaces. This bill will return the 1099-K reporting requirement to the time tested $20,000 and 200 separate transactions from the Democrats' disastrous budget gimmick, which lowered the threshold to just $600. Democrats in Congress won’t acknowledge the tax nightmare they’ve created for working class Americans and failed to fix the issue in the FY23 omnibus spending package, leaving taxpayers days away from disaster.  

“The Saving Gig Economy Taxpayers Act will protect Americans who use online payment platforms, gig economy workers, and small e-commerce sellers from being taken advantage of and will ensure they continue to have access to reliable income streams,” said Congresswoman Miller. “Because of Democrat’s change to the 1099-K threshold, an American getting rid of old exercise equipment from his garage online now qualifies as a salesman of workout equipment, a teenager babysitting the neighbors’ kids is in the childcare business, and roommates who split rent are now property managers, and are all eligible to be taxed by the IRS. The Republican led House will restore the 1099-K threshold to levels that were working just fine before Democrats complicated the system. I thank my colleagues on the Ways and Means Committee to supporting this bill and I look forward to the passage of this bill on the House floor as soon as possible.”

Watch Congresswoman Miller discuss the Saving Gig Economy Taxpayers Act in the markup.

“Thank you, Chairman, for including my bill H.R. 190 – the Saving Gig Economy Taxpayers Act - in the Small Business Jobs Act.

My bill, which is co-sponsored by all Republican Ways and Means members, is a huge step in turning back the Democrat's disastrous American Rescue Plan provision which will send tens of millions of forms to taxpayers and small businesses in every congressional district. 

Even the IRS knew that lowering the threshold would be a disaster, so they single handedly and extra-legally delayed implementing the lower threshold for another year. This Administration has set a terrible precedent that the IRS can ignore tax laws when politically convenient. 

I also applaud the bill for expanding tax incentives to S Corporations, increasing immediate expensing for all small businesses, and for delivering the benefits of opportunity zones to rural communities like mine.  

I look forward to working with you Mr. Chairman, and this committee, to make the successful Opportunity Zone program even more effective, to ensure investors have the certainty that they need to make these important investment decisions.”

Background:

Congresswoman Miller reintroduced the Saving Gig Economy Taxpayers Act which repeals an unwarranted tax hike in the American Rescue Plan.

Before the Washington Democrats law change, to qualify for a 1099-K form, a taxpayer would have to earn at least $20,000 and have at least 200 transactions through an e-commerce platform. The American Rescue Plan lowered the threshold to $600 a year with no minimum on the number of transactions.

When Democrats made the threshold $600, the reporting required drastically increased. So much so that the IRS delayed implementation for a year because it was too burdensome on them.

In April, the IRS Commissioner Danny Werfel admitted the 1099-K Threshold should change back to $20,000 when he said “a change in the threshold would be easier to administer.” Learn more here. 

Original source can be found here.