• NASE Members Speak Out: Cost of Health Insurance Hinders Micro-Business Owners
• Study Finds Home-Based Sole Proprietors Generate $102 Billion In Annual Revenue
• Estate Tax Repeal Legislation Falters in Senate
• Member Poll: Immigration Reform

NASE Members Speak Out: Cost of Health Insurance Hinders Micro-Business Owners

Over half of micro-business owners (57 percent) have had to go without health insurance at some point, according to a recent online member poll conducted by the NASE. Those currently without health insurance and those who have gone without it cited cost as the chief reason for being uninsured. “The NASE continues to fight for a fair health care system where micro-business owners and the self-employed can find affordable ways to insure their families and employees,” said Kristie Darien, NASE executive director of the legislative office. “Until that happens, the NASE has launched the Your Health, Your Choice health care initiative to better inform micro-business owners of their options.” Only one-quarter of respondents felt they fully understood the health care options available to micro-business owners while 15 percent said they did not have an understanding of such options. Additionally, nearly one-third of respondents (32 percent) said they could not easily find access to simple, easy-to-read information on the subject. The top three sources utilized to find health coverage options are the Internet (56 percent), insurance company (35 percent) and professional or trade organizations (26 percent). These results closely mirrored a nationwide, scientific survey the NASE conducted in 2005, which found a majority of survey respondents (51.1 percent) did not offer, nor plan to offer, a health insurance plan through their business for themselves or their employees. Nearly 62 percent cited cost as the single most significant barrier to offering health care to employees. Last month, the NASE launched the Your Health, Your Choice initiative to provide practical help to the micro-business community while policy debate continues. It is designed to educate and empower self-employed individuals and micro-business owners to take control over their own health care. The Your Health, Your Choice program features a comprehensive guidebook and new Web site --- www.MicroBusinessHealth.com -- available to everyone with an interest in controlling soaring health care costs. Designed with the self-employed individual or micro-business owner in mind, these resources are free and contain valuable information to benefit anyone looking to assess their own health care needs, including tips for choosing the right health plan, tips on keeping health care costs down and tips on health and wellness programs. For more information on the Your Health, Your Choice Initiative, visit www.MicroBusinessHealth.com. For the full results of the online member poll, visit http://advocacy.nase.org/membersurvey/default.asp. For more information on the nationwide health care survey, visit http://news.nase.org/nase_about/PressRelease.asp?PRID=142. Methodology: Posted in the members-only portal on the NASE Web site, the survey was available for members to take during the months of April and May. Over 1,000 NASE Members opted-in to the non-scientific survey and members were prohibited from taking it more than once. Study Finds Home-Based Sole Proprietors Generate $102 Billion In Annual Revenue America’s home-based sole proprietors generate $102 billion in annual revenue, according to a recent study released by the Office of Advocacy of the U.S. Small Business Administration. The study details revenues, expenses and income for both home-based and non-home-based sole proprietors by sector by examining federal income tax data from 2002. Home-based businesses comprise about half of the NASE Membership. Home-based sole proprietors tended to make less than those who rent office space - $22,569 in net income compared with $38,243 for those who rent. Even so, their overhead costs are usually lower, thus allowing them to keep more of their revenue as profit. To that end, the average total receipts of home-based businesses was $62,523 as compared with their non-home-based counterpart’s $178,194. “Sole proprietorships are a vital part of our economy,” said Thomas Sullivan, Chief Counsel for Advocacy. “Many are home-based micro-businesses; collectively they generate a significant amount of economic activity. For the average sole proprietor, their business provides benefits of entrepreneurship that go beyond just income and revenue.” The NASE supports legislative measures to simplify the home office deduction including a measure to introduce a $2,500 standard home office deduction. “The home office deduction was enacted to help our nation's micro-businesses, but in its current form, the deduction has become more burdensome than helpful and that needs to change,” said NASE president Robert Hughes. “The NASE continues to work toward a fair tax system that is the least onerous for taxpayers.” For more information on the NASE’s legislative priorities, visit http://advocacy.NASE.org. Estate Tax Repeal Legislation Falters in Senate Last week, the Senate failed to invoke cloture on debate of a full repeal of the estate tax. The vote was 57-41, three votes shy of having enough Senators to override a filibuster. It is unknown whether or not the Senate will consider a compromise in which the exemption amount could be raised or the tax rate reduced. Last year, the House passed a bill that would extend the repeal of the estate tax indefinitely. Currently, the Bush tax cut of 2001 will impact estate taxation until the year 2011. Presently, the first $2 million of estates per individual are exempt for estate tax purposes. In 2009, the exemption level is scheduled to increase to $3.5 million for individuals and by 2010, it will be fully repealed. However, in 2011, the estate tax is scheduled to be reinstated as the tax cuts of 2001 expire. The House has passed similar legislation four times in the last five years. Some Republican House leaders said they are willing to work on a compromise with Senate conservatives and Democrats if necessary. While some Republican leaders say compromise is possible, some staunch supporters of the repeal may not be so ready to make changes to the legislation. The NASE supports raising the exemption amount to $5 million. The NASE will continue to follow the estate tax debate closely. Let your Members of Congress know how you feel about the estate tax through the online Legislative Action Center at http://advocacy.NASE.org. Member Poll: Immigration Reform The issue of immigration has been front-page news over the past few weeks. Both the Bush Administration and Congress are working on proposals to reform our current immigration policy and address the issue of undocumented immigrants within our nation. Immigration has a large impact on our economy and small businesses in various industries. Let the NASE know your opinions on current immigration policy and suggested reforms by visiting the MyNASE Web site at http://my.NASE.org/. Log in to your free MyNASE Web account. If you have not set up an account, you can do so at http://my.NASE.org/ with your member number.