December 8, 2004
SBA Releases Self-Employment Study at NASE Offices
Self-employment rates for women, blacks, and Latinos have risen sharply since 1979, according to a study released by the Office of Advocacy of the U.S. Small Business Administration. Between 1979 and 2003, self-employment rates increased across ethnic groups and gender, with an overall increase of more than five percent.
The report was released at the Washington office of the National Association for the Self-Employed, the leading resource for micro-businesses and the self-employed.
“Increasingly, self-employment is an appealing option for Americans,” said Robert Hughes, NASE President. “Whether they are fulfilling life-long dreams, drawn by the flexibility, or finding it as an option after corporate layoffs, this study shows that more and more people are enjoying the benefits of being their own boss.”
“Self-employment is a critical part of our economy,” said Thomas M. Sullivan, Chief Counsel for Advocacy. “Self-employment provides the main source of income for a diverse group of over 12 million Americans. The increase in self-employment rates for women, blacks, and Latinos show that small business ownership can move minorities and women further into our economic mainstream.”
Written by Robert Fairlie with funding from the Office of Advocacy, Self-Employed Business Ownership Rates in the United States: 1979-2003 delves into the data behind published figures from the Bureau of Labor Statistics (BLS). Unlike BLS figures, this report includes incorporated as well as unincorporated self-employed. The study found that over the period studied the self-employment rate increased 33 percent for women, 37 percent for blacks, and 15 percent for Latinos. The white rate increased nine percent while the male rate increased two and a half percent.
For more information on the study, visit the Office of Advocacy Web site at www.sba.gov/advo. For media inquiries regarding the study data, contact John McDowell at the Office of Advocacy at (202) 205-6941 or john.mcdowell@sba.gov.
|
SBA Refunded, Loan Program Not
The House and Senate finally reached a compromise on continued funding for the U.S. Small Business Administration, after months of disagreement. Expected to be signed into law soon, the reauthorization extends SBA programs for two more years and provides funding for programs such as Small Business Development Centers and Women’s Business Centers.
A controversial provision in the reauthorization eliminates the federal subsidies for the SBA flagship 7(a) loan program. There is concern that a move to a zero subsidy rate may force added costs and fees to be passed on to loan applicants.
Chairman Donald Manzullo of the House Small Business Committee sees the subsidy elimination in a positive light. “By removing federal subsidies, it saves taxpayers between $70 million and $80 million and for the first time makes the 7(a) program self sustaining without the need for Congressional action,” he said.
The Ranking Democrat on the Small Business Committee, Nydia Velázquez, disagrees. She estimates that for a loan of $700,000, eliminating the federal funding would raise the fees by approximately $3,000. “These higher costs, which are nothing more than a new tax, will put small business loans out of reach for many of our nation’s entrepreneurs,” she said.
The NASE supports the SBA 7(a) loan program, and hopes that possible increased fees to micro-businesses will not hinder those who need to apply for loans.
|
$73 Million in Tax Refund Checks Go Undelivered
Seven months after the 2004 tax filing deadline, the Internal Revenue Service announced that it was looking for 7,485 taxpayers whose income tax refund checks could not be delivered. Checks totaling more than $73 million are ready to be reissued as soon as taxpayers correct or update their address with the IRS.
“If we owe you money, we'd like to get it to you,” said IRS Commissioner Mark W. Everson. “All you have to do is tell us where you are.”
The IRS Web site, www.IRS.gov, makes it easy for taxpayers to track their undelivered refund checks through the online feature “Where's My Refund?” To use it, taxpayers enter information that includes their Social Security number, filing status (such as single or married filing jointly) and the refund amount shown on their 2003 tax return. When the information is submitted online, taxpayers see Web pages that show the status of their refund and, in some cases, instructions to resolve potential account issues.
According to the IRS, the number of undeliverable refund checks decreased this year by 5,325, but the average refund, $836, increased compared with last year’s average of $722. Most refund checks go astray because they changed their address, but failed to notify the IRS or U.S. Postal Service.
Taxpayers who have moved since filing their last tax return can ensure the IRS has their correct address by filing Form 8822, Change of Address form, with the IRS. Download the form or request it by calling 1-800-TAX-FORM (1-800-829-3676). Those without access to the Internet, who think they may be missing a refund, should first check their records or contact their tax preparer before calling the IRS toll-free assistance line at 1-800-829-1040 to update their address.
Track your refund here: www.irs.gov/individuals/article/0,,id=96596,00.html
Change your address with the IRS here: www.irs.gov/pub/irs-pdf/f8822.pdf
Congress Breaks Deadlock on Internet Tax Ban Bill
After a year-long deadlock, Congress has banned taxes on Internet access for the next three years. Separate from the issue of sales taxes on online purchases, the bill, approved late last month, prohibits states from imposing taxes on monthly Internet provider fees, which are usually passed on to consumers.
The legislation, S. 150, lasts through 2007 and is retroactive to last year, when the previous moratorium on Internet access taxes had expired. Signed into law by President Bush, the ban covers all forms of consumer Internet access, including telephone-based, satellite, and cable.
The NASE encourages the development of e-commerce by keeping the Internet and telecommunications as tax-free as possible. Taxing the Internet and goods sold over the Internet will add to the imbalance micro-businesses face on an already unequal playing field
|
