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Washington Watch
January 22, 2004
Click here for the PDF Version
NASE Sets 2004 Legislative
Agenda
With the number of self-employed continuing to
increase and grow the economy, the NASE will advocate
to level the playing field in health coverage costs,
taxes and regulatory affairs in 2004. Eliminating the
payment of self-employment tax on health premiums is
the Association’s number one priority for the upcoming
year.
“The unemployment rate dropped in December because
more people went into business for themselves,” said
Kristie Darien, NASE director of government affairs.
“Why are we punishing this entrepreneurial spirit with
unfair tax laws and regulatory burdens?”
An employee in a firm with less than 10 employees pays
18 percent more for health insurance than a worker in
a firm with 200 or employees. Add to this disparity
the payment of self-employment tax on health premiums,
and the result is a nation where 70 percent of
micro-business owners do not have health coverage for
themselves or offer it to employees.
“Sole proprietors cannot deduct the cost of health
coverage as a ‘business expense,’ which means that
their premiums are subject to the 15.3 percent
self-employment tax,” Darien said. “Larger
corporations are able to deduct these health costs,
lowering their overhead, and increasing the likelihood
that coverage is offered to employees. So not only do
the self-employed have to pay more for health
coverage, but they also get less access to the pool of
talented workers who demand benefits from employers.”
The NASE endorses the
Self-Employed Health Care Affordability Act, H.R.
1873, to fix this disparity. The NASE also advocates
for health care tax credits and association health
plans as ways to make coverage more accessible for the
self-employed and micro-business owners.
Clarifying the IRS definition of an
independent contractor is another priority for the
NASE in 2004. During the past 10 years, disputes and
audits that arose after incorrect classification of
contractors have cost small businesses more than $75
million in IRS fines and back taxes.
“The NASE is not saying the definition should be
looser, or that the definition should be more strict,”
said Darien. “We just want it to be clear. At this
point, the IRS guidelines for classification are
subject to a lot of interpretation, and when a
micro-business owner does their taxes, they should not
be burdened with a muddied tax code.”
A permanent increase in the deductible for
business
equipment expenses to at least $50,000, support
for
Federal Small Business Programs such as Small
Business Development Centers, and Social Security
reform round out the NASE legislative priorities for
2004.
Read more about the NASE position on these issues at
the NASE Legislative Action Center at
Advocacy.NASE.org.
Congress Returns from Recess, Bush to
Issue State of the Union
The U.S. Congress returns to the Capitol this
week, and the NASE is poised and ready to advocate on behalf
of the self-employed and micro-business owner. Read the
NASE Legislative Priorities for 2004, and
write to your
Members of Congress to start the year right by taking up
these issues. Also follow President George W. Bush’s State
of the Union address, where the NASE hopes issues like
making the increase in business expensing permanent and the
creation of association health plans get top billing.
IRS 2004 Tax Calendar for Small
Businesses Available
Never miss another tax filing date! The
2004 IRS Tax Calendar
for small businesses and the self-employed is now available
online, complete with reminders, tips and links to the tax forms
you’ll need. View the calendar online, or order it from
800-829-3676.
Apply for the NASE Women’s Advisory
Council!
Do you want to impact the future of women entrepreneurs and make
a difference in your Association?
The NASE is accepting applications for the next Women’s Advisory
Council – a dynamic opportunity to assist the Association in
meeting the unique challenges facing women entrepreneurs today.
Read about the impact this year’s
Council has had, and log onto MyNASE to
apply today.
Do any of these issues affect you? Visit the NASE Legislative
Action Center and “Tell Your
Micro-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.
Click here for the PDF Version
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