NASE Press Releases

Health Reform: More Of The Same From House Lawmakers

koberlander — Tue, 10 Nov 2009 14:11:42 GMT

Bill Lacks Meaningful And Timely Aid For Small Business Health Costs

Washington, D.C., November 10, 2009 – The House narrowly passed the Affordable Health Care for America Act (H.R. 3962) this weekend and now the Senate will be the new ground zero for health reform debate. The National Association for the Self-Employed (NASE) was dismayed to see that lawmakers have once again failed to include provisions that will make a noticeable difference in the bottom line of the nation’s millions of self-employed business owners.

According to NASE’s June 2008 study, “Health Coverage: A Micro-Business Perspective,” one-third of self-employed individuals are currently uninsured, with cost being the primary reason for their lack of insurance. Furthermore, the study showed a massive drop in employer-sponsored coverage amongst micro-businesses, those businesses with fewer than ten employees. In 2008 only 18.6 percent offered health insurance to their employees, down from 46.2 percent in 2005. The primary reason for dropping group health coverage was again, cost.

“In this difficult economic time, reform should make accessing health coverage easier and more affordable for small business,” said Kristie Arslan, executive director of the NASE’s legislative offices. “It seems the legislation passed by the House will likely make it more difficult, and worse, more costly for our nation's entrepreneurs to obtain health coverage.”

Arslan notes that, while the bill’s small business and individual tax credit provisions sound good on paper, in reality they will not take effect for at least three more years, in 2013. Additionally, the credit can only be applied towards health coverage purchased through the new Exchange or health marketplace the bill creates, forcing many self-employed business owners to choose between keeping the coverage they currently have or dropping that coverage to obtain financial assistance with skyrocketing health costs.

Read Arslan’s entire commentary, titled “House Democrats Eke Out A Victory On Health Reform,” on the NASE Staff Blog.

While the Senate will cull together its own vision of reform, the House version of the legislation gives a preview of what might be in a final reform bill. The NASE will continue its efforts to push for tangible, immediate cost saving measures to be included in a final health reform package. For more information on the NASE’s recommendations, please visit NASE in Action.

Consumer Protection Legislation Clears First Hurdle

mnelson — Fri, 23 Oct 2009 12:13:36 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

Consumer Protection Legislation Clears First Hurdle

House Committee Passes Key Component to President Obama’s Financial Regulatory Reform Effort

Washington, D.C., October 22, 2009 -- The Consumer Financial Protection Agency Act of 2009 (H.R. 3126), which includes the creation of a new federal agency central to President Obama’s financial regulatory reform initiative, was approved by the House Financial Services Committee today.

In reaction to the housing crisis and the collapse of our financial markets, the bill creates the Consumer Financial Protection Agency (CFPA) to protect consumers from risky and deceptive practices in the financial marketplace, while also protecting our country from another economic debacle. The CFPA would oversee and regulate consumer financial products such as credit cards and mortgages.

According to NASE’s November 2008 Housing & Economic Survey, 49 percent of the self-employed used various forms of personal financing (mortgage, home equity, credit card, etc.) to start their businesses. Credit card debt accounted for 28 percent of this total debt. Close to 70 percent of survey respondents indicated that they used various forms of debt (mortgage, home equity, credit card, etc.) to obtain additional cash for their business operations, of which 39 percent was credit card debt.

Micro-businesses and the self-employed have been hit particularly hard during this financial crisis. Their reliance on credit cards, lines of credit and home equity loans to help with the daily operating costs of their business has left the self-employed vulnerable to unpleasant industry practices. Furthermore, due to slow sales and a cash flow crunch resulting from the credit freeze and plummeting home values, some micro-business owners have been forced to close their doors.

“During the financial crisis, business definitely declined for our transmission shop. We had used credit cards to pay bills. Our credit card company cancelled these lines of credit; my husband and I each had a card. Once our lease was up we had to sell our business to our landlord at a huge loss,” commented NASE Member Jere Smith, owner of Lancelot Inc. in Liberty, Mo.

The National Association for the Self-Employed supports creating a transparent and fair financial marketplace with increased consumer protections and consumer education. While NASE Members support efforts to improve financial regulatory reform, the micro-business community wants assurances that small business will have a voice in the regulatory process of the new Consumer Financial Protection Agency, as well as existing regulatory agencies. Regulators must be mindful that new rules do not have the unintended consequence of restricting credit further, or making it more costly for micro-businesses to access financing options.

“Our nations’ smallest businesses have seen the value of their home drop, their retirement savings shrink and their access to credit freeze. Furthermore, they have seen their tax dollars go to shore up the same big institutions that created this financial mess. They want assurances that our government regulators won’t be caught sleeping on the job again,” commented Kristie Arslan, executive director of the NASE.

About the NASE
The National Association for the Self-Employed (NASE) is the nation's leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's Web site at www.NASE.org.

“Mr. President, The Self-Employed Need Your Help,” Says NASE

koberlander — Thu, 22 Oct 2009 14:52:42 GMT

Association Talks Access to Capital and Health Reform With President Obama At Small Business Event

Washington, D.C., October 22, 2009 - During a meeting with President Obama, the National Association for the Self-Employed (NASE) made sure to mention that micro-businesses are still facing difficulties getting access to credit and financing and that health costs are crippling the backbone of the American economy – the self-employed.

The meeting was part of a small business event in Maryland yesterday to unveil a new initiative to increase access to capital. The President announced plans to increase small business lending by providing capital support to community banks, raising loan limits on SBA’s various loan programs, and creating a “lending conference” to find other methods of expanding credit and financing to small business.

“So to all the small business owners out there,” commented President Obama. “I know that times are tough and I can only imagine what many of you are going through, in terms of keeping things going in the midst of a very tough economic climate, but I guarantee you this: This administration is going to stand behind small businesses. You are our highest priority because we are confident that when you are succeeding, America succeeds.”

A key component of the President’s new small business lending initiatives is increasing the maximum loan size of SBA 7(a) loans from $2 million to $5 million, in order to help small businesses invest in machinery, equipment, land, and buildings. Additionally, there has been a push to raise the maximum loan size of SBA microloans from $35,000 to $50,000 which will give a boost to start-ups and micro-businesses.

Passage of legislation will be required to adjust SBA loan limits. Senator Mary Landrieu, Chair of the Senate Committee on Small Business and Entrepreneurship, along with other key Senate Members have introduced “The Small Business Access to Capital Act” (S.1832) to address this issue. The NASE strongly supports this bill which would expand SBA funding opportunities.

“We are pleased to see this renewed focus on small business. In this time of economic decline, it is the self-employed and micro-businesses that will lead us to recovery,” said Executive Director Kristie Arslan. “After handing out billions of taxpayer dollars to shore up big business, we feel it is time our nations’ policymakers focus on America’s smallest businesses. We applaud the President for moving in the right direction with his recent announcement.”

View a fact sheet on the initiative here.

Senate Introduces Home Office Deduction Bill

koberlander — Fri, 09 Oct 2009 13:37:36 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

Tax Benefit For The Self-Employed Makes Filing IRS Forms Easier And Faster

Washington, D.C., October 9, 2009 – The majority of micro-businesses are operated out of a home office, yet the home office deduction has become wrapped in enough regulatory red tape to turn those business owners away from the tax benefit. New legislation could help home-based businesses save nearly $1,500 on their taxes next year. The National Association for the Self-Employed (NASE) is proud to support the Home Office Tax Deduction Simplification Act (S. 1754), a bill that was introduced by Sen. Barbara Boxer (D-Calif.) this week. Sens. Jeff Merkley (D-Ore.), Joe Lieberman (IND-Conn.) and Evan Bayh (D-Ind.) also lent their support to this bill.

“We are proud to see that both the House and Senate have taken a stand on this important issue,” said Kristie Arslan, executive director of the NASE legislative office. “Hopefully, there will be movement on this bill this year to assist our nation’s home-based businesses.”

Business owners often report that the qualification criteria for the deduction is too difficult to navigate, while others fear that taking the deduction will trigger an audit. The legislation would allow business owners the option of a $1,500 standard deduction, but would not disqualify taxpayers currently eligible for the home office deduction from continuing to itemize their expenses. Rather, it offers a taxpayer-friendly way to take the deduction. If passed by Congress, the bill would significantly minimize the time and paperwork needed for tax preparation for these tiny businesses. The bill would also require that the amount of the standard deduction be indexed for inflation.

“Small businesses are critical to the American economy, and this legislation will help them thrive,” said Sen. Boxer, “This bill cuts the red tape that prevents many small businesses from claiming this tax deduction. By making it easier to claim the deduction, more small businesses can invest these funds to expand and create much-needed jobs.”

In September, Rep. Kurt Schrader (D-Ore.) introduced similar legislation in the House of Representatives. For more information, see “Legislators Take On Home Office Deduction.”

For statistics on entrepreneurs and the home office deduction, view the results of this 2008 NASE poll.

NASE Members Receive $20,000 In Business Development Grants

mnelson — Thu, 01 Oct 2009 16:16:23 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

Washington, D.C., October 1, 2009 – Micro-business owners received a financial boost to their business in the third quarter, thanks to the National Association for the Self-Employed’s Business Development Grant Program. These NASE Members, with businesses as varied as a communications firm and a recycling service, were awarded a total of $20,000 for their businesses.

With the Business Development Grant program, NASE Members can apply for up to $5,000 for a specific business need such as the purchase of new equipment or software, or the funding of advertising, marketing materials and training. Since the program began in 2006, the association has awarded over $350,000 to member businesses.

The NASE Business Development Grant Program offers access to capital for micro-business owners who have a specific business need – but lack the finances to carry out that goal. The program was designed after an online NASE Member poll found that a majority of micro-business owners (57 percent) initially fund their businesses using personal savings, and many (40 percent) continue to use personal savings for ongoing financing.

“Over the past two years, we’ve seen how just a small amount of capital can get a business off the ground,” said NASE President Robert Hughes. “When a retailer can suddenly sell products online or a contractor can buy a piece of equipment instead of renting it—those small changes to the way a business operates can generate huge profits.”

The following NASE Members received grants during the third quarter of 2009:

Theresa Cassiday of Catena Creations, LLC in Bellevue, Neb.
Janna Piper of Janna Piper Housesitting in Portland, Ore.
Lily Hay of Aglow Marketing, LLC in Indianapolis, Ind.
Robby Gerken of Erie Recycling Services, LLC in Antwerp, Ohio

To learn about all the NASE Business Development Grant recipients, click here. Benefit availability dependent upon membership level.

Allowing Tax Incentives To Expire Will Hurt Small Firms

mnelson — Wed, 30 Sep 2009 14:00:00 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

NASE Asks Legislators To Help the Recovery by Helping Small Business

Washington, D.C., September 30, 2009 – Although originally enacted to prevent those Americans with the most resources at their disposal from avoiding taxes, the Alternative Minimum Tax (AMT) did not take into account the effects of inflation, the growth of earnings and expenses. Congress has adjusted the exemption amount over time to keep up with inflation, but that adjustment is now scheduled to end, which would result in an increased tax burden for many small business owners and families.

The NASE’s National Tax Advisor, Keith Hall, testified before the House Committee on Small Business today about how allowing the AMT and other tax incentives to expire would cause a direct and unintended tax increase on the small business sector that many are relying on to continue the economic recovery. Hall suggested that at a minimum, the exemption amounts should not be allowed to decrease, but should be increased annually based on an inflation index in order to continue the recovery.

“Allowing the increase in the exemption amount to ‘sunset’ would directly increase the tax burden for many Americans past their ‘fair share’ simply because they may live in a state with a higher than average state income tax. Others would pay more than their fair share simply because they have a larger than average family. Others would pay more than their fair share simply because they have higher mortgage interest due to a second lien necessary to fund their business or a child’s education. Clearly, none of these scenarios was the intent of the AMT from so many years ago,” noted Hall.

The NASE supports the extension of expiring tax incentives including the AMT exemption, accelerated depreciation, sales tax deductions, first time home owner buyer credit and others. The key point for supporting the extension of tax incentives is to support extending the economic recovery. The NASE believes in the long term impact that small business will have on the overall economy. Promoting investment, encouraging new job development and keeping the playing field level for all taxpayers is essential to long term recovery.

Read the full text of Keith Hall's testimony here.
Watch highlights from Keith Hall's testimony on YouTube.

Track the progress of current legislation that would help micro-businesses and the self-employed by visiting advocacy.NASE.org.

Legislators Take On Home Office Deduction

koberlander — Fri, 25 Sep 2009 09:24:08 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

Important Tax Benefit for Home-based Entrepreneurs To Be Simplified

Washington, D.C., September 24, 2009 – New legislation could help self-employed business owners who work from a home office save an additional $1,500 on their taxes next year. Congressman Kurt Schrader (D-OR), Chairman of the Finance and Tax Subcommittee of the House Small Business Committee, and Congressman Devin Nunes (R-CA), a member of the House Ways and Means Committee, have re-introduced bi-partisan legislation to simplify the filing process for the home office deduction by providing for an optional standard deduction. Representatives Ron Kind (D-WI) and Vern Buchanan (R-FL) are also named as primary co-sponsors of this bill.

With the majority of micro-businesses being operated from an office inside the home, the Home Office Tax Deduction Simplification Act (H.R. 3615) will ease tax time worries for millions of entrepreneurs. The legislation would allow business owners the option of a $1,500 standard deduction, but would not preclude taxpayers currently qualifying for the home office deduction from continuing to itemize their expenses should they choose. It would simply offer a taxpayer-friendly way to take the deduction. If passed by Congress, it would significantly minimize the paperwork and time spent on tax preparation for entrepreneurs managing their business out of their home. The bill would also require that the amount of the standard deduction be indexed for inflation.

Many business owners cite complexity of the criteria to qualify for the deduction as too cumbersome; others cite a fear being audited as their primary reason for avoiding this deduction. The NASE has advocated for the simplification of the tax code, specifically the home office deduction, for many years. In a 2008 NASE poll, three in five home-based business owners admitted they did not utilize the current home office deduction. Of those, nearly two-thirds said the option of a standard deduction would encourage them to take it.

"The home office deduction is the perfect example of a commonsense deduction that has become so complicated that qualifying taxpayers forgo this vital tax benefit.” said Kristie Arslan, executive director of the NASE legislative office. “An optional standard deduction would remove the barriers faced by eligible home-based entrepreneurs and allow them to take a tax deduction they greatly need in this difficult economic time.”

"Small businesses are the job creators in our economy,” said Schrader. “This bill will streamline the tax process that often puts an undue burden on entrepreneurship allowing small businesses to put these savings back into the economy. That means hiring more workers, expanding their businesses, and helping rebuild our economy. I’m pleased to join with my colleague Representative Nunes to work for a bi-partisan proposal to help American small businesses and our economy.”

NASE, Business Owners Respond To Pres. Obama’s Health Care Speech

mnelson — Thu, 10 Sep 2009 16:12:19 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

Address Leaves Small Business Owners With More Questions

Washington, D.C., September 10, 2009 – President Barack Obama delivered a prescription for health care last night that left some of the self-employed wondering just where they fit in the plan. While the speech elaborated on current proposals the President wants in a final reform package, he did not address a number of key concerns for micro-business owners (those with 10 or fewer employees). Click here to read the full text version of the President’s speech online.

“While I am pleased that the President has decided to take a more active role on health reform and referee the players on Capitol Hill, ultimately we all know that the devil is in the details,” remarked Kristie Arslan, executive director of the National Association for the Self-Employed (NASE). “If the President is going to hold fast to the current proposals -- some good, some bad -- on the table and not offer any new ideas, then we need to know his opinion on the details and how it differs from that of Congress.”

The NASE supports a few specific reform proposals that will provide enormous relief for self-employed business owners. These propositions will greatly increase their ability to afford coverage for themselves, their families and their employees:

Exchange/Gateway: The creation of a national Exchange as well as other pooling mechanisms, such as cooperatives, to increase access to coverage and create administrative efficiencies for individuals and businesses with 50 or fewer employees.
Business Deduction for Health Insurance for the Self-Employed: Unlike their larger counterparts, the self-employed cannot deduct health insurance premiums as a business expense and instead are taxed on their health coverage. The cost of leveling the playing field is about 2.5 percent of the total price tag for health reform. For our smallest businesses, this is a small price to pay for a provision that will make coverage more affordable and accessible for 22 million self-employed Americans nationwide.
Expansion of Health Reimbursement Arrangements (HRAs): Sole-proprietors are not eligible to participate in an HRA, which is a flexible benefit option that allows other business entities to help employees with their health care costs. HRAs represent a consistent and stable way for the self-employed and micro-businesses to extend employees financial assistance toward health care costs.
Market Reforms: The NASE supports market reforms that would remove the use of health status as an underwriting mechanism for access to coverage.
Benefits: Current health reform legislation creates a committee or advisory council to determine an essential benefits package (i.e. a minimum level of coverage allowed.) The determination of an essential benefits package can play a large role in the cost of coverage. There must be a balance between cost and coverage to ensure that any required minimum benefits package is affordable.

After Pres. Obama’s speech, the self-employed weighed in with their reactions:

“My concerns remain the same: Is there a possibility that my premiums may actually increase because I can no longer purchase the kind of coverage I currently have,” Graphic Designer Alyssa Turk of Grand Rapids wondered. “Regardless of how you cut it, the government will be much more involved in the health care choices of those who purchase health care privately. This is what I am opposed to. I am happy to be responsible and have health insurance; I simply don't trust the government to determine my plan.”

“As small-business owners, I see most of us just taking the 8% penalty for not insuring our employees and letting our employees just use the government option,” said Chris Humphrey, a photographer from Tulsa, Oklahoma. “It's sad but true. I can't afford a massive hike in health care rates and I know most other small businesses can't either. Let the free market work and let the insurance companies compete across state lines.”

View a more detailed version of the NASE’s Health Reform Priorities online.

Read Arslan’s entire commentary on the NASE Staff Blog.

Read the full text of President Obama’s address to a joint session of Congress.

NASE To Attend Orlando Small Business Community Day – Sept. 17

koberlander — Tue, 01 Sep 2009 12:06:12 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

Entrepreneurs Can Gather, Network And Learn At Florida Event

Washington, D.C., September 1, 2009 – This fall, small-business owners in the Orlando-area will have a great opportunity to broaden their skills and network with other entrepreneurs and small business-centered organizations and companies. The Association of Small Business Development Centers (ASBDC) is hosting “Orlando Small Business Community Day” on Thursday, September 17, at Rosen Shingle Creek Resort.

The event will feature informative workshops, roundtables and a tradeshow. Participants will have the opportunity to learn from various small-businesses experts, including Rhonda Abrams, a Small Business columnist for USA Today, and Al Lautenslager, an author, consultant, speaker, and business owner. Other workshops will be hosted by tradeshow vendors. Click here for a list of exhibitors.

“The NASE is a strong supporter of the SBDC program, which plays a vital role in nurturing entrepreneurship,” said Keith Hall, Chief Operating Officer of the NASE. “We are happy to participate in this important event.”

The National Association for the Self-Employed (NASE) advocates for continued support and additional funding to assist Small Business Development Centers. Nearly 1,000 local SBDC offices provide entrepreneurial assistance to more than 1.2 million small business owners and aspiring entrepreneurs each year. The centers offer face‐to‐face business consulting at no charge and at‐cost training on writing business plans, accessing capital, marketing, regulatory compliance, international trade and more.

Visit the ASBDC online for more information and to register for “Orlando Small Business Community Day.”

NASE Forms Partnership With Inside Business Report And The Art Of Living

koberlander — Mon, 24 Aug 2009 15:17:09 GMT

For Immediate Release:

Contact:

Contact: Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org

Washington, D.C., August 24, 2009 – The National Association for the Self-Employed (NASE) today announced that they have entered into a strategic partnership to provide a multi-platform distribution pipeline for educational television programming. As the nation’s leading resource for the self-employed and micro-businesses, the NASE is working with Inside Business Report and The Art of Living to provide viewers across the country with expert-driven information about self employment -- a vital facet of the United States economy. Both shows will consult with NASE experts, as well as draw upon NASE research at times during their broadcast.

About Inside Business Report with Fred Thompson

Inside Business Report with Fred Thompson covers relevant issues that fuel our society. The show takes viewers on a journey to discover today what the community will be talking about tomorrow. Inside Business airs during the day on a variety of well-known news networks. For more information, please visit www.IBReportTV.com.

About The Art of Living with Marilu Henner

The Art of Living with Marilu Henner is a preeminent lifestyle show, covering health, travel, dining, fashion, interior design and family life, among other topics. The show is dedicated to keeping all members of the family well-informed, and airs on a variety of national and regional networks. For more information, please visit www.watchartofliving.com.

“The NASE constantly searches for new ways to reach the nearly 22 million self-employed individuals in the United States,” said Kristin Oberlander, Public Affairs Manager. “We see this partnership as a wonderful opportunity to deliver educational content to even more businesses and also to those who want to learn more about them.”

"As our viewers already know, we are producing a number of segments related to the self-employed and micro-businesses," said Jim Nicholas, Vice President of Production for Inside Business Report. "We are extremely excited about this opportunity to collaborate with a recognized leader in the field, expanding education and helping entrepreneurs to succeed."

"The flexibility afforded by self-employment is often regarded as a way to balance work and home activities," said Vice President of Production for The Art of Living. "This partnership with the National Association for the Self-Employed offers an exciting future for the self-employment and micro-business communities. Together, we will expand education and help entrepreneurs to succeed."

NASE Gives $84,000 In College Scholarships

mnelson — Wed, 12 Aug 2009 15:06:29 GMT

For Immediate Release:

Contact:

Contact: Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org

NASE Gives $84,000 In College Scholarships

Over $1.8 Million Awarded In 20 Years Of Academic Support

Washington, D.C., August 12, 2009 – Just as states across the nation are cutting financial aid due to budget shortfalls, the National Association for the Self-Employed awarded $84,000 in scholarship money to help 17 families send their children to college.

Merit-based scholarships worth $4,000 were awarded to 18 students. The NASE Future Entrepreneur received $12,000, with a promise of $12,000 more over the next three years as long as he maintains a high academic performance.

The scholarship awards will be used to defray the cost of tuition, which has risen to an average of $6,585 per year for four-year public colleges, and $25,143 per year for private schools, according to the College Board.

“For 20 years, the NASE has viewed this scholarship program as a way to help our members send their children to college,” said Robert Hughes, NASE president. “The students can study any subject at any accredited college. I’m proud we can help these students achieve their dreams.”

The NASE Scholarship Program began in 1989 as a way to invest in the future of entrepreneurship. Since its start, over $1.8 million has been awarded to the dependents of NASE Members.

The 2009 NASE Future Entrepreneur, Joe Pielago, is a Los Angeles streetwear designer. With his scholarship of up to $24,000, he plans to attend the University of San Francisco as a freshman this fall.

The 2009 NASE $4,000 Scholarship recipients are:

Clare Bateman of Waymart, Pa.
Victoria Boyd of Memphis, Tenn.
Abigail Ebensberger of La Vergne, Tenn.
Brittany Elmer of Rockton, Ill.
Kelly Gwiner of Fostoria, Ohio
Laurel Hansen of Allison Park, Pa.
Hannah Harmsen of Middleville, Mich.
Lindsey Maxon of Arlington, Texas
Lesli Meekins of Port Orchard, Wash.
Ethan Montgomery of Stephenville, Texas
Jennifer Pappas of Methuen, Mass.
Emily Rapp of Sharon, N.H.
Joshua Scherschel of Bedford, Ind.
Raphael Shapiro of Sag Harbor, N.Y.
Trevor St. John-Gilbert of Rockwall, Texas
Jason Wilber of Downingtown, Pa.
Julia Wilber of Downingtown, Pa.
Devon Zielinski of Argyle, Texas

For more information about the NASE Scholarship Program or the 2009 recipients, please contact Kristin Oberlander at koberlander@NASEadmin.org.

It’s (Big) Business As Usual In Washington, D.C., Says NASE

koberlander — Tue, 11 Aug 2009 12:21:05 GMT

For Immediate Release:

Contact:

Contact: Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org

It’s (Big) Business As Usual In Washington, D.C., Says NASE

Current Health Care Reform Proposals Leave Self-Employed To Foot The Bill

Washington, D.C., August 11, 2009 – The NASE recently spoke out on current health care reform legislation, which is notably missing two items that would have a substantial effect on the affordability of coverage for the self-employed. The NASE has been vocal in its support for allowing the self-employed to deduct their health care costs as a business expense. The Association has also advocated for improving Health Reimbursement Arrangements (HRAs) to allow the self-employed business owner to participate in the plan along with their employees. Unfortunately, neither provision has been included, nor offered as an amendment, in the current larger health reform bills.

“With close to 23 million Americans taking care of their families and creating jobs through self-employment, Congress would be wise to pay attention to the needs of this growing demographic,” said NASE executive director Kristie Arslan. “Unfortunately, this has not been the case with health reform.”

Earlier this year, legislation was introduced in the House (H.R. 1470) and Senate (S.725) to allow small firms to deduct health costs as a business expense. The tax code currently permits corporations to both deduct health insurance premiums and to forgo payroll taxes on these expenses. In addition, the employees of these corporations can pay for health coverage with pre-tax dollars. Unfortunately, the same tax benefits are not extended to sole proprietors. As a result, these business owners must pay 15.3% in self-employment taxes – their payroll taxes. For example, a business owner paying $6,000 per year for health insurance must also pay $918.00 in additional self-employment taxes because of this inequality in the tax code.

Another cost-saving proposal before Congress is to open eligibility for HRAs to small business owners. An HRA is a flexible benefit option allows small business owners to reimburse employees tax-free for out-of-pocket medical costs, including health insurance premiums. A key benefit of an HRA is that they do not require the business owner to purchase a group health plan; therefore, setting up an HRA can offer some financial assistance to employees of micro-businesses who are unable to afford group health insurance.

"Regrettably, expansion of Health Reimbursement Arrangements is not on the radar screen of policymakers on the Hill," Arslan remarked. "In fact, we have heard rumblings that Senate Finance Committee may actually want to take away their tax deductibility in order to help finance their health reform proposal."

Read more about health reform and other legislative priorities of the NASE at http://www.nase.org/Advocacy/TopFedIssues.aspx.

Small business commentaries by Kristie Arslan, click here.

NASE Asks Senators To Lower Health Costs For Small Business

mnelson — Fri, 10 Jul 2009 16:46:03 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

Senate Small Business Committee Roundtable A Forum For Small Business Owners, Advocates

Washington, D.C., July 10, 2009 – The United States Senate Committee on Small Business and Entrepreneurship recently held a roundtable to discuss the impact of various health reform proposals on small businesses. Kristie Arslan, Executive Director of the Legislative Office for the National Association for the Self-Employed (NASE), participated in the roundtable along with Senator Ron Wyden (D-Ore.) and other small business owners and advocates.

Arslan spoke about how NASE Members consistently cite health care as the top issue affecting their business, and asked Congress to help the self-employed with the high health care costs that are damaging their businesses. Arslan mentioned the results of a June 2009 survey by the NASE in which approximately 60 percent of respondents chose cost containment as the most important aspect of reform for them and their business.

“Our nations’ smallest businesses not only want health reform but in fact, they need reform in order for their businesses to remain viable,” she commented. “Improving affordability and stability of premiums as well as providing for sustainable cost containment in the overall healthcare system must be a top reform priority.”

Both Small Business Committee Chair Mary Landrieu (D-La.), and Ranking Member Olympia J. Snowe (R-Maine), acknowledged the high costs that small business owners face to provide health care for themselves and their employees.

“The cost of providing coverage is rising at an unpredictable and unsustainable rate, making it difficult for small business owners to secure stable healthcare for their employees,” said Sen. Landrieu. “Simply put, we need to reform our health care system to provide small businesses the opportunity to grow and prosper. The cost of doing nothing is just too great.”

“Small business health reform must be a central component to our broader reform efforts, and that is why I am working diligently, as a senior member of the Senate Finance Committee, to craft bipartisan, comprehensive health care reform legislation that will make health care more affordable and universal for small businesses and the self-employed,” added Sen. Snowe.

Watch archived footage of the roundtable here.

View comments submitted on behalf of the self-employed by Executive Director Kristie Arslan.

Streetwear Clothing Company Founder Receives NASE’s Future Entrepreneur College Scholarship

mpetron — Fri, 10 Jul 2009 10:07:27 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
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Streetwear Clothing Company Founder Receives NASE’s Future Entrepreneur College Scholarship

Washington, D.C., July 8, 2009 -- For twenty years, the National Association for the Self-Employed (NASE) has provided budding entrepreneurs with a means to success through its college scholarship program. This year is no exception, with a scholarship worth up to $24,000 going to Joe Pielago, a Los Angeles streetwear designer.

The NASE's Future Entrepreneur award is the only one of its kind devoted to fostering entrepreneurship in college-bound students. Joe receives $12,000 towards his education for the first year, and he can renew it up to three more times for $4,000 each year as long as he maintains certain academic standards.

Joe recently graduated from Palos Verdes High School in Rancho Palos Verdes, Calif., and will use his scholarship to study business at the University of San Francisco this fall.

“This scholarship helps me so much,” Joe says. “I knew . . . my high school education would not provide me with enough of a background to meet my ambitions. I knew that I needed to attend college. After researching what colleges had to offer, I decided I needed to be a business major with a strong emphasis on entrepreneurship.”

At the University of San Francisco, Joe intends to continue the business that qualified him for the NASE Future Entrepreneur scholarship – Volia Los Angeles.

Volia is a line of hats and T-shirts that combine the hip-hop, skateboard craze and urban lifestyle that are part of the Southern California culture for teens in the 21st century. The company has four employees, including Joe’s brother, Jeff, 15, who’s the venture’s top salesman and Joe’s lifelong friend D.J. Vilicich, who helped co-found Voila.

Joe’s father, Rick, is an NASE Member who owns his own CPA practice. The NASE scholarship program started in 1989 for dependents of NASE Members. In addition to the flagship Future Entrepreneur scholarship, the NASE also awards multiple $4,000 merit-based scholarships. In 2009, the NASE awarded these to 18 deserving students.

In honor of the program’s 20th anniversary, NASE Chief Operating Officer Keith Hall and Executive Director of Communications Maureen Petron traveled to Rancho Palos Verdes to present Joe with his award.

“Joe embodies the reason the NASE started the scholarship program 20 years ago,” Hall said. “Inspired by his small-business owner father, Joe had an idea, saw a market need, and created a company that he cares passionately about. We’re proud to reward that kind of ambition.”

Find out more about the NASE scholarship program, or log into your member account to apply online.

Micro-Businesses Offer Strong Opinions On Health Reform Proposals

koberlander — Wed, 24 Jun 2009 10:31:00 GMT

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

Micro-Businesses Offer Strong Opinions On Health Reform Proposals

Businesses Support Private Insurance Over Federal Plan, Oppose Mandates

Washington, D.C., June 24, 2009 -- The nation’s entrepreneurs are ready for major changes to the American health care system, but are asking the federal government to implement various proposals to help them cope with the costs. When asked for the most important component of health reform, 60 percent of micro-business owners cited cost containment, even over access and choice. Nearly 2,000 micro-businesses, including members of the National Association for the Self-Employed (NASE), took part in this national online survey of their opinions on current health care reform proposals.

Most micro-businesses, companies with 10 or fewer employees, are closely following the health care debate. When asked how many had heard the term “public option” in relation to discussions surrounding reform, two-thirds indicated they were familiar with the term, and of those, 71 percent identified it correctly as “a health insurance program run by the government and open to anyone in need of health coverage.”

Most entrepreneurs are strongly opposed to a “public option.” Rather, they prefer a free market approach, wherein business owners can work with private insurance carriers instead of purchasing a federally managed plan. Seventy-one percent said that they would choose a private insurer when given the choice to purchase the exact same health insurance policy at the exact same price from either a private insurer or the federal government.

“Micro-businesses are distrustful of the federal government and its ability to manage health care,” commented Kristie Arslan, Executive Director of NASE’s Legislative Offices. “They continue to bear witness to how the government creates inequities in the tax code, increases red tape and poorly manages their budget. If the self-employed were to run their business in the same manner as the federal government, these entrepreneurs would have been out of business a long time ago. Likewise, business owners do not feel that they should put their health care in the government’s hands via a public health plan.”

When asked about various market reforms, micro-businesses were most supportive of these choices:

• Create an exchange or marketplace to facilitate the purchase of quality, affordable health coverage by allowing small businesses and individuals to easily compare and purchase the plans of their choice;

• Require health insurance carriers to provide health insurance to all those who apply regardless of their health status;

• Allow small businesses to group together via associations or organizations to purchase health insurance; and

• Create non-profit insurance cooperatives across the country, organized by the government but owned by the cooperative members, in which small businesses and uninsured individuals can purchase health coverage.

As health care costs continue to rise and the current system lacks equitable tax treatment of health care costs for the self-employed, micro-businesses are stronger than ever in their opposition to federally imposed mandates. Respondents were more amenable to the idea of mandates if they received a considerable subsidy, such as a health tax credit, that would help them defray costs.

According to Kristie Arslan, “the ailing economy makes it difficult for this segment of the business population to survive an employer or individual mandate. However, the micro-business community is willing to compromise and accept a mandate, if and only if it is accompanied by meaningful financial assistance.”

Other key findings:

• The top two health tax proposals favored by micro-businesses are providing tax credits to businesses and the self-employed to offset health care costs and reforming the tax treatment of health coverage so that, regardless of whether health insurance is purchased individually or accessed through an employer, the worker receives the same tax benefits.

• The majority of respondents were neutral on a recent suggestion of a cap on the employer exclusion. However, there were quite a few who strongly opposed such a cap.

• Half of all respondents strongly opposed the recommendation to make taxable money utilized from Health Reimbursement Arrangements (HRAs) and Flexible Spending Accounts (FSAs) to pay for health costs. Currently these funds are tax-free. • When asked about a small business exemption to coverage mandates, 38 percent felt that using the number of employees as a benchmark was the right approach to determine the exemption. However, a number of respondents chose “Other” and indicated that an exemption should be made based on a combination of factors, such as number of employees and revenue.

Many survey respondents gave specific comments on the public option, mandates and other issues impacting the health care reform conversation. Here is a sample of perspectives received:

I do not think the government should become an insurer. I do think the government should regulate private insurers more.

I do not agree with the government mandating how businesses should run. They have been unsuccessful with their own budgets. What qualifies them to stipulate this to successful businesses?

The federal government would be too large and not specific enough to meet my individual needs. Plus, I believe strongly that the quality of care provided by the government would be worse.

Employers should not provide coverage. Let individuals subscribe to whatever plan they want and let employees take home money to purchase insurance instead of the employer purchasing for it for them. Individual needs are different.

I do not think the government should be able to pick and choose the businesses that are required to carry health insurance for their workers.

The federal government is doing a poor job with the health plans (i.e. Medicare and Medicaid) it controls now. Why would it be good to give them expanded control?

I would prefer that the government not be involved in providing my health care. However, I also cannot continue to provide health insurance on my own through private insurers if they continue to increase premiums at the current rate. If I could not afford private insurance, I would hope that there would be some other option rather than no insurance. If that is a government policy, then so be it.

Full survey results online at the NASE Research page.