• Minimum Wage Increase Passes House
• House Committee on Small Business Expands its Scope
• Countdown To April 15th

Minimum Wage Increase Passes House

The House of Representatives voted 315-116 last week in favor of raising the minimum wage over two years. Republican lawmakers have criticized Democrats for not allowing any amendments to the bill, though eighty-two Republicans voted in favor of the measure. Provisions for small businesses are expected to be added when the bill reaches the Senate floor this Wednesday. The NASE sent a letter last week to key Members of the House and Senate to encourage them to incorporate the self-employment tax deduction on health insurance into minimum wage legislation. The self-employed (sole-proprietors) are unable to deduct premiums as a business expense and are required to pay an additional 15.3 percent self-employment tax (payroll taxes) on their health care costs. The self-employed are the only segment of the business population that pays this extra tax on health insurance. “We hope to see additional small business friendly provisions added when this bill hits the Senate,” said Kristie Darien, executive director of the legislative office in Washington D.C.. “There are so many proposals being debated right now that would really help our members, and we’d love to get some traction on these issues from the start.” The Senate Finance Committee already has one proposal in the works. Chairman Max Baucus, D-Mont., and ranking member Charles Grassley, R-Iowa, are backing legislation that would allow small business owners to deduct investments from their taxes after fifteen years, instead of the current twenty-nine. Estimates put the cost of the plan near $8-10 billion, which would be funded through cuts made in a 2006 Senate bill on the telephone excise tax. It also would allow more businesses to use cash accounting which, proponents argue, saves money and makes filing federal taxes less burdensome. The NASE encourages you to contact your Members of Congress via the NASE’s Legislative Action Center (http://advocacy.nase.org/) to urge them to include the self-employment tax deduction on health insurance premiums in minimum wage legislation. For more information on this issue, please visit www.setaxequity.org. House Committee on Small Business Expands its Scope Small businesses will have increased input into the legislative actions that affect them, as a result of a new rules package focusing on fiscal responsibility and ethics reform that passed the House recently. This new voice for entrepreneurs in Congress is a result of the U.S. House Small Business Committee's extended reach to act on those measures that impact our nation's small firms. "In order to meet the needs of this nation's small businesses, their input must be included - many times small businesses are not considered in the legislative process, which can result in unintended consequences for entrepreneurs," Chairwoman Velázquez said. "Taking on this new role will allow the Small Business Committee to broaden its focus, and actively engage on those legislative initiatives that impact this nation's entrepreneurs." In the past, the committee's legislative focus has been limited to the Small Business Administration (SBA), and its programs, with the committee serving only in an oversight role on other issues. This will change under the Democratic-controlled Congress, as the committee will have greater ability to review and act on many of those initiatives which affect this nation's 26 million small firms. "As the drivers of our economy, entrepreneurs deserve nothing less than to be included in the decisions that impact them most," Chairwoman Velázquez said. "Our nation's small businesses now have a seat at the table, and a stronger voice in Congress. Democrats have always said the needs of our small businesses are a priority - and today's action confirms that. This is a new beginning for our small businesses - one that ensures their needs are considered in all policy decisions." Countdown To April 15th With three months to go until this year’s tax filing deadline, many small business owners probably haven’t even thought about their taxes yet. But the next 90 days will go a lot faster than you think, says Keith Hall, national tax advisor for the National Association for the Self-Employed (NASE). Hall says a common mistake that many micro-business owners make is waiting until the last minute to begin preparing their taxes. “Putting off doing your taxes only increases the likelihood that you’ll make needless mistakes and miss legitimate deductions you could be taking,” said Hall. “The best advice I can offer is start early and get organized. Start with last year’s tax return. If you had income or deductions on last year’s return, there’s a good chance you’ll see the same for this year’s return.” Hall says January is the perfect time to start pulling together the papers you’ll need for tax filing. Documents including W-2s, 1099s, bank interest statements, and investment account statements can be assembled now to help support the numbers on your tax return. For more practical tips, please go to http://news.nase.org/. Micro-business owners should begin looking into available resources for tax preparation help now to avoid the last-minute crunch. The IRS website (www.irs.gov) provides access to numerous detailed publications to meet virtually every need. The NASE’s Tax Talk program also offers free tax advice for the self-employed. Small business owners can visit http://taxtalk.nase.org/taxtalk.asp to submit questions and get fast, knowledgeable answers to tax questions from CPAs. Become a media contact and get the opportunity to share your experiences as a micro-business owner. Visit www.NASE.org/mediarelations/contactsheet.asp to fill out an informational sheet on the background of your business. Then, send it back to us at the contact information listed on the sheet. You can put your name in the hat to sound off on key legislative issues, and get some free publicity for your business in the process!