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Washington Watch
June 18, 2003
Legislative Updates: AHPs
and the Estate Tax
Association Health Plans:
The
House Education and Workforce Committee passed
Association Health Plan (AHP) legislation, setting it
up for a full House vote, possibly this week. AHPs
would increase competition, purchasing clout and
administrative efficiencies for the self-employed and
micro-businesses, decreasing health insurance premiums
an average of 13 percent.
The NASE attended a press conference in anticipation
of the House vote, to show support for the
Small Business Health Fairness Act, H.R. 660,
which would allow entrepreneurs to join together
through a bona-fide trade association to purchase
health coverage.
Read more about Association Health Plans at
www.AHPsNOW.com, or the NASE position at
advocacy.nase.org.
Estate Tax:
The House may also vote on permanent repeal of the
estate tax this week. Two years ago, when President
Bush’s 2001 tax cut was passed, it included a
provision to phase out the estate tax, with full
repeal in 2010. But, unless Congress votes to make the
repeal permanent, the estate tax is scheduled to come
back in 2011.
H.R. 8, sponsored by Rep. Jennifer Dunn (R-WA)
would eliminate the federal tax on estates.
The NASE will be watching this issue carefully.
Because of the size of many NASE Members’ businesses,
the Association advocates for a permanent increase in
the estate tax exemption to $5 million.
Let your Members of Congress know how you feel about
AHPs and the estate tax at
advocacy.nase.org.
Self-Employed’s Computer Usage Up
A larger number of self-employed individuals own a computer
and have access to the Internet, according to a study by the
Office of Advocacy of the Small Business Administration. The
study, “Self-Employment and Computer Usage,” found that 10.5
million self-employed owned computers in 2000, up 14.7
percent from 1998. Additionally, the number with access to
the Internet grew by 50.4 percent from 1998 to 2000. In
2000, 83.2 percent of self-employed individuals had access
to the Internet.
IRS Web Site Offers Identification Numbers For
Businesses
(The IRS Taxpayer Education and Communication office has
provided the following “Headliners” article in an effort to
educate micro-business owners and make it easier to fulfill
their tax obligations. For more articles, or for more
information about any of the information contained in this
article, please contact the
IRS Small
Business/ Self-Employed division.)
The Internal Revenue System now allows businesses to obtain
employer identification numbers directly from its Web site. New
business owners or their tax professional representative can go
to www.irs.gov
to apply and obtain their EIN via the Internet, 24 hours a day,
7 days a week. Simply search EIN to begin the process. No
registration is required to use the system and the number is
issued immediately.
The EIN online processing eliminates the need to send paperwork
to the IRS. It also eliminates delays caused by incomplete
application forms.
While Internet is the preferred method, businesses may still
obtain EINs by calling 1-800-829-4933 from 7:30 a.m. to 5:30
p.m. (local time), by mail or fax (see Form SS-4 instructions).
Do any of these issues
affect you? Do you want to be proactive in helping the
micro-business community?
Visit the NASE Legislative Action Center and be a
Small Business Crusader. Members of Congress
appreciate hearing from their constituents. Letting
your members know how you feel on an issue puts
strength behind the NASE legislative agenda.
For more information about any of the articles in
Washington Watch, contact Maureen Petron, NASE public
affairs manager, at (202) 466-2100 or
mpetron@nase.org.
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