The NASE supports tax credits to cover the health insurance costs of micro-businesses and the self-employed so that businesses of all sizes receive a more equitable tax treatment for these costs.

Background:
The number of people without health insurance has been rising steadily since the late 1980s. Most of the uninsured either work or are dependents of workers. There were almost 24 million uninsured workers in 1995, which represented approximately 60 percent of the entire uninsured population. Most of the remaining uninsured are dependents of workers.

According to the SBA’s Office of Economic Research 1999 Report, small businesses represent over 99.7 percent of all employer firms and 53 percent of the U.S. workforce. Looking at the statistics, if small businesses could afford health insurance for themselves, their families, their employees and their employee’s families, the number of uninsured would decrease.

Legislative Activity:
Currently in the House of Representatives, the Securing Access Value and Equality to Health Care Act, a.k.a the SAVE Act (H.R. 1236), proposed by Rep. Kay Granger (R-TX) and Rep. Albert Wynn (D-MD) would provide each individual with a pre-payable, fully refundable tax credit towards the purchase of health insurance. The credit would be $1,000 for individuals, $2,000 for married couples and $500 per dependent up to $3,000 per family, plus 50 percent of any additional premiums to assist those with higher costs.

In the Senate, the NASE is also in the process of working with Senator Hillary Clinton’s office on legislation she has introduced that would offer a tax credit specifically for micro-businesses.