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Washington Watch
May 7, 2003
Bill Aims to Reduce Pain for
Nation's Self-Employed Seeking Affordable Health
Insurance
Chairman of the House Small Business Committee
Donald Manzullo (R-IL) |
Federal legislation introduced last week would give 16
million self-employed Americans better access to
affordable health care coverage, ending a significant
double-digit disparity in premium rates that has
contributed to the nation’s health care crisis. The
“Self-Employed Health Care Affordability Act” (H.R.
1873) would eliminate strong cost penalties in
health insurance imposed on the self-employed and make
quality health care more affordable for millions of
Americans who now make up the majority of the
working
uninsured. |
In the nation’s current health care crisis, the
self-employed have been hit particularly hard, facing
rising costs of health care combined with laws that
require these business owners to pay an extra 15
percent in FICA (Medicare and Social Security) taxes
on their health insurance premiums. This segment –
comprising the smallest business owners across all
income levels – is the only group of American workers
that bears this tax burden. Today, more than 62
percent of the 41 million uninsured Americans are from
families headed by a self-employed person or working
for a company with fewer than 100 employees.
Under the “Self-Employed Health Care Affordability Act
of 2003,” these inequities will be addressed by
eliminating the requirement that the self-employed
claim health insurance premiums when determining
self-employment tax. Bill co-sponsors are Chairman of
the
House Small Business Committee Donald Manzullo
(R-IL) and Ranking Member Nydia Velázquez (D-NY).
The introduction of the “Self-Employed
Health Care Affordability Act of 2003” is a major
victory for the NASE, who has been working to educate
Members of Congress on this inequality.
“Millions of self-employed individuals live the
American dream every day by running their own
businesses, being their own bosses and supporting the
national economy,” said NASE President Robert Hughes.
“But while the self-employed have invested tremendous
sweat-equity as key contributors to the economy and
society, they face a remarkably unfair playing field
behind the scenes when it comes to access to
affordable health care.”
“Our smallest businesses should have the same
opportunity to deduct their health insurance costs as
our large corporations currently enjoy,” Chairman
Manzullo said.
“The number one concern for small businesses today is
health care and the rising costs associated with it,”
Rep. Velázquez said. “This bipartisan legislation
seeks to rectify the health care inequity that weighs
heavily on small businesses by enabling the
self-employed to deduct their health insurance costs,
giving them a much greater ability to afford quality
coverage.”
For more information on the NASE position on
self-employment tax on health insurance premiums,
visit the
NASE Legislative Action Center.
WOW! Facts on Women Diversity Released
Each day, 1,600 women become new business owners.
One in 18 U.S. women is a business owner, and female
entrepreneurship has been growing at twice the national average
since 1997.
These are just some of the facts found in “Women
and Diversity WOW! Facts 2003,” released last week by the
Business Women’s
Network and
Diversity Best Practices. The 800-plus-page fact book
provides a major reference guide for information relating to
women and diversity with a focus on business.
At an event launching the new edition – “WOW! Facts” has been
published since 1999 – the Honorable Mel Martinez,
United States
Secretary of Housing and Urban Development, Representatives
Elijah Cummings (D-MD) and Ciro D. Rodriguez (D-TX), and Senator
Debbie Stabenow (D-MI), noted the importance and growth of women
and minorities to American business.
“WOW! Facts” is available in print, on disc or online at
www.ewowfacts.com.
HSBC Subcommittee Hearing on the Uninsured
The problems facing the nation’s uninsured will be the topic
of a
House Small Business Subcommittee on Tax, Finance and Exports
hearing this week, and the NASE will testify on proposed
solutions. Subcommittee Chairman Pat Toomey (R-PA) plans to
discuss how the use of Medical Savings Accounts, Flexible
Spending Accounts and tax credits can help the 41 million
American’s without health insurance. The NASE will highlight how
the self-employed are unfairly hit with a double-digit disparity
in premium rates. Specifically, the NASE will discuss the
“Self-Employed Health Care Affordability Act” (H.R.
1873), and how it can save the self-employed 15 percent on
their health insurance premiums.
Read more about NASE-proposed solutions to increase access to
affordable health care at the
Legislative Action
Center.
Study Shows Small Firms Patent Abroad Less Often Than
Larger Firms
A new study issued by the U.S. Small
Business Administration
Office of
Advocacy shows that small firms are not protecting their
inventions through foreign patents as often as large firms. This
lower rate of foreign patenting results in fewer commercial
opportunities and lost revenue, according to the report,
“Foreign Patenting Behavior of Small and Large Firms: An
Update.”
The study reveals that smaller firms are increasingly protecting
their inventions in the global marketplace through patents.
However, they still patent abroad less than larger firms do, and
they also allow their patents to lapse more often.
“Small firms are incredibly inventive,” said Thomas M. Sullivan,
Chief Counsel for Advocacy. “But many times they are unable to
protect their inventions in the global marketplace, due to their
inability to secure foreign patents. If small firms are unable
to protect the results of their hard work, our country could
lose its most valuable source of new ideas and innovations,” he
said in a press release announcing the findings.
The reason cited most often for small businesses’ failure to
patent abroad is lack of financial resources, according to the
press release. Moreover, a 2002 GAO report found that the most
important impediment is foreign patent costs. That report
highlighted other barriers, including small firms’ limited
resources, limited foreign patent knowledge, differences in
foreign patent systems, and weak enforcement in some countries.
Do any of these issues
affect you? Visit the NASE
Legislative Action Center and “Tell Your Small
Business Story.” This will help the NASE understand -
on a personal level - how key legislative issues are
affecting your business and your bottom line.
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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