October 5, 2007
- Bill Aims To Level Playing Field for Nation’s Self-Employed
- Kerry Pushes To Expand High-Speed Internet Access
- Small Biz Asked To Call Out Burdensome Business Regulations For Review
- Bush Vetoes Bill to Reauthorize and Expand SCHIP
Bill Aims To Level Playing Field For Nation's Self-Employed
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Federal legislation introduced today would level the playing field for 20.3 million self-employed Americans by ending a significant double-digit disparity in taxes paid on health insurance that has contributed to the growing health care crisis. The Equity for Our Nation's Self-Employed Act, introduced recently in the House of Representatives by Rep. Wally Herger (R-CA) and Rep. Ron Kind (D-WI), would eliminate an inequity in the tax code that inhibits the self-employed from receiving a full deduction for health insurance costs.
In addition to leveling the playing field for our nation's smallest businesses, this legislation would assist in making health care more affordable for millions of self-employed Americans who currently make up a substantial number of the working uninsured. Today, more than 60 percent of the 47 million uninsured Americans are from families working for a small business or headed by a self-employed individual. In a 2005 NASE study, more than two-thirds of micro-business owners said they are unable to afford health insurance for themselves or their employees, with costs cited as the chief reason.
"Millions of self-employed individuals live the American dream every day by running their own business, being their own boss and supporting the national economy," said NASE President Robert Hughes. "But while the self-employed have invested tremendous sweat-equity as key contributors to the economy and society, they face a remarkably unfair playing field behind the scenes when it comes to the tax code and health care."
NASE Member Gloria Aeilts Wright runs a psychotherapy practice in Redding, CA. She is paying $1,327 in additional self-employment taxes on her health insurance. Wright remarked, "I have difficulty affording the health insurance I currently utilize. If I did not have to pay this extra tax burden, I could offset some of my current health costs and also invest in a retirement account."
"The proposed bill is a major step in leveling the playing field for sole proprietors," said Hughes. "It will go a long way in helping to ensure that they can afford insurance and assist in freeing up money that can be used to help their enterprises succeed."
To support the Equity for Our Nation's Self-Employed Act, visit http://advocacy.NASE.org. For view the bill in its entirety, visit http://thomas.gov.
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Kerry Pushes To Expand High-Speed Internet Access
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Senator John Kerry (D-MA) has begun a push for a stronger federal role in expanding high-speed Internet access and increasing competition among broadband providers. This comes in a response to the testimony offered by two commissioners from the Federal Communications Commission (FCC) at a recent Senate Committee on Small Business and Entrepreneurship hearing.
As the chairman of the committee, Kerry is concerned about the detrimental effect that a slow and/or expensive Internet connection can have on American small businesses, especially those in fast-paced industries.
“The majority of Americans still have either no Internet access at all or are stuck with dial-up,” Kerry remarked. “To compete and win in the new global economy, we need a national broadband strategy that encourages competition and expands access.”
While Kerry may be anxious to tackle connectivity, there was disagreement at the hearing over how to address the problem, or even if there was a problem at all due to the lack of data on Internet usage in the United States. All witnesses agreed that comprehensive research on cost and access to the Internet needed to be rectified before the federal government addressed the issue. One of the FCC commissioners at the hearing, Michael Capps, testified that “the FCC’s current efforts at data gathering are woefully out-of-date and out-of-whack.”
For more information on the hearing, please visit http://sbc.senate.gov/20070926.cfm.
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Small Biz Asked To Call Out Burdensome Business Regulations For Review
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The following article excerpt comes to Washington Watch courtesy of the Small Business Administration’s Office of Advocacy.
The Office of Advocacy of the U.S. Small Business Administration is seeking nominations of federal rules in need of review and reform. The "Top 10 rules nominated by small business owners, trade associations, and others will be transmitted to appropriate federal agencies for review and reform.
Advocacy’s new small business Regulatory Review and Reform (r3) initiative addresses many of the issues raised in a recent GAO report, Reexamining Regulations: Opportunities Exist to Improve Effectiveness and Transparency of Retrospective Reviews (http://www.gao.gov/new.items/d07791.pdf). The report spotlighted implementation of section 610 of the Regulatory Flexibility Act (RFA), which mandates that agencies periodically examine their existing regulations to measure changing impacts on small business.
The GAO found that agency implementation of section 610 review often suffers from a lack of clear standards, insufficient public participation and comment, and inadequate communication of the results to stakeholders.
The r3 initiative directly addresses these issues. The initiative 1) offers agencies guidance and training on how to implement section 610 of the RFA, 2) solicits recommendations from the small business community on rules that should be reviewed, and 3) provides public updates on the status and results of agency retrospective reviews.
To nominate regulations for review and reform, visit the Office of Advocacy r3 webpage at http://www.sba.gov/advo/r3/.
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Bush Vetoes Bill to Reauthorize and Expand SCHIP
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Yesterday President Bush vetoed a bill that would expand the State Children’s Health Insurance Program (SCHIP) by $35 billion over the next five years, forcing a confrontation with congressional leaders. Supporters of the bill say that this increase would be enough to expand enrollment from 6.6 million to 10 million and dramatically reduce the number of uninsured children in the country, which is currently estimated at 9 million.
Bush had threatened to veto the bill for months, arguing that it was expensive and expanded the program so greatly that it would encourage some parents to drop private family coverage. He added that “if this bill were enacted, one out of every three children moving onto government coverage would be moving from private coverage.” This statement was partly supported by a report by the Congressional Budget Office which found that 2 million people who have health insurance or could obtain it may instead join SCHIP.
Democrats on the Hill were critical of the veto. "Today we learned that the same president who is willing to throw away a half trillion dollars in Iraq is unwilling to spend a small fraction of that amount to bring health care to American children," quipped Sen. Edward M. Kennedy (D-Mass.). “The Congress has done its job, passing a bipartisan bill that meets a critical need without adding a penny to the federal deficit. The president has broken his promise to America's children."
Despite bipartisan support, Congress does not have enough votes to overturn the veto. Funding for SCHIP runs out in mid- November, by which time Congress must resolve the issue or pass another temporary reauthorization.
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Share your experiences as a micro-business owner!
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Sound off on key legislative issues and get some free publicity for your business in the process by becoming a media contact. 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.
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