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THE FREE COMMUNITY PAPER INDUSTRY

The Honorable Mike Johanns


404 Russell Senate Office Building
Washington, DC 20510

August 26, 2010

RE: 1099 Paperwork Tsunami Repeal Efforts

Dear Senator Johanns:

On behalf of the united Free Community Paper Industry, we write to express our strong support for S. 3578, the
Small Business Paperwork Mandate Elimination Act, and your identical Amendment 4596. These measures will
offer critical relief to hometown publishers and their small business advertisers by repealing the costly and burden-
some new tax paperwork requirement included in Section 9006 of H.R. 3590.

Our publishers operate on the front lines of the economy, providing the glue that bonds neighbors and the mer-
chants on Main Street. We share a singular perspective on the condition of truly local commerce. No company
among us has an excess of time, energy or money for a tsunami of frivolous paperwork.

Based on member surveys, even the very smallest of community paper publishers would face exorbitant new costs
for labor, office supplies and postage totaling in the thousands of dollars. At larger publications, the back and forth
goose chase for Taxpayer Identification Numbers and Form 1099s from one-time vendors down to most occasional
advertisers, raises the order of magnitude.

Some have joked that the coming tsunami of paperwork could even “save” the Postal Service. However ironic,
considering many of our publishers rely on the USPS for distribution, there are far better ways to achieve that unin-
tended objective. Further, a separate unintended consequence could happen if small businesses consolidate advertis-
ing to fewer outlets or cut back altogether to avoid more paperwork. Since each ad dollar lost compounds to a net
economic loss of 4 to 10 times or more, this would be a disaster for our hometown economies.

We appreciate your efforts to remove this new and onerous burden on small business and look forward to working
with you to advance this vital legislation.

Sincerely,

Association of Free Community Papers


Mid-Atlantic Community Papers Association
Free Community Papers of New York
Midwest Free Community Papers
Community Papers of Ohio and West Virginia
Community Papers of Florida
Community Papers of Michigan
Southeastern Advertising Publishers Association
Texas Community Newspaper Association
Wisconsin Community Papers

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