• Bill Aims To Help Telecommuters
• New Ideas For Children’s Health Insurance Program
• Domestic Issues Weigh Heavy On Micro-Businesses

Bill Aims To Help Parents Work from Home

A bill introduced in the United States Senate and House of Representatives today seeks to assist working parents and home-based businesses. The Parents’ Tax Relief Act, introduced by Representative Lee Terry (R-NE) and Senator Sam Brownback (R-KS) creates a Telecommuting Tax credit to encourage employers to offer full- and part-time telecommuting jobs. It also includes the creation of a standard home-office tax deduction, a measure that has been a top legislative priority for the National Association for the Self-Employed (NASE). “Many home-based business owners prepare their own taxes; yet the stringent criteria, paperwork burden and complexity of the home office deduction force many home-based business owners, who could qualify, to not employ this benefit,” said Kristie Darien, executive director of the NASE legislative office. “The option of a standard $2,500 deduction simplifies this regulation and makes it easier for micro-business owners to comply with the tax code.” The legislation’s proposed tax credit for telecommuting would encourage employers to offer full- and part-time telecommuting jobs. The NASE feels that the Parents’ Tax Relief Act of 2007 will greatly assist home-based business owners and those that face today’s balancing act of caring for and financially supporting their families. If passed, the Parents’ Tax Relief Act would also create a home-office standard deduction option; extend the Dependent Care Tax Credit to stay-at-home parents with young children; make the Child Tax Credit permanent and increase the personal child tax exemption; allow up to ten years of flexible Social Security employment credits for mothers or fathers who care for children at home; and eliminate the marriage penalty on joint filing. To read more about the Parents’ Tax Relief Act, visit http://thomas.loc.gov/. New Ideas For Children’s Health Insurance Program A bipartisan panel of policy analysts and Congressional staff members gathered this week to add to the ever-growing pool of recommendations on the financial future of the State Children’s Health Insurance Program (SCHIP). The group was assembled by the Federation of American Hospitals, a health policy and advocacy organization, to discuss obstacles SCHIP faces during its reauthorization, including funding, eligibility concerns, and whether or not to extend coverage to more parents. While some were concerned with funding the program under the current “pay-as-you-go” budget set forth by Democrats, others promoted the idea of allowing children to sign up at school and to register for all eligible federal assistance programs with one form. Currently, lawmakers and health care interest groups are grappling with problems associated with increasing participation in the plan by children and some parents. They also argue about whether or not additional parents should be allowed to enroll. A recent study indicates that allowing more parent enrollment increases the likelihood that their children will be enrolled. The NASE supports the reauthorization of the State Children’s Health Insurance Program (SCHIP) which assists children from low-income families to gain access to health coverage. We believe it is essential for all children under the age of 18 to have access to health care. As part of the reauthorization efforts, we would like a simpler process for states to voluntarily use SCHIP dollars to subsidize such employer-sponsored coverage. Many parents of SCHIP-eligible children have access to employer-sponsored health insurance coverage but cannot afford their portion of the dependent premiums. It is important to encourage these parents enroll their children in SCHIP, and use these dollars to pay for their portion of their employer-sponsored insurance to increase the number of families covered together under private-market plans. To learn more about the way SCHIP is structured, visit http://www.cms.hhs.gov/NationalSCHIPPolicy/. Domestic Issues Weigh Heavy On Micro-Businesses Micro-businesses expect to continue growing this year but are worried about how some domestic issues will affect their business, according to a recent online survey by the National Association for the Self-Employed (NASE). More than one in four said cost of health coverage is a top issue facing their business in 2007. Tax equity and complexity was a close second to health care costs as a top concern of micro-businesses. Other issues of priority include access to capital, the ability to hire skilled, qualified workers and retirement security. “Our members stay current on policy initiatives and lend a valuable voice to our advocacy work,” said Kristie Darien, NASE executive director of the legislative office. “Our member polls are one way that we determine our priorities. We are pleased to see the growth in micro-business community despite difficult barriers such as health care costs and tax compliance difficulties.” Respondents also indicated that they expect to be even more profitable in the coming months. From 2005 to 2006, approximately forty-six percent said their gross sales revenue increased and that they believe these trends will continue in 2007. For the full results of the survey, visit http://advocacy.nase.org/membersurvey/default.asp. The countdown to Tax Day is near and the next several weeks will go by faster than you think, according to NASE TaxTalk advisor Keith Hall. The NASE is offering free tax assistance in a downloadable, audio format to make filing your return a little less painful. Go to http://news.nase.org/nase_podcast.asp each week for a lighthearted look at the tax code with Keith. For more information on the NASE’s TaxTalk program, please visit http://taxtalk.nase.org/taxtalk.asp.