• Chairman Rangel Planning To Propose $1 Trillion In
  Tax Offsets
• Male And Female Entrepreneurs Not So Different, Study Finds
• Employer Health-Insurance Premiums Still Costly

Chairman Rangel Planning To Propose $1 Trillion In Tax Offsets

The new chairman of the House Ways and Means Committee is developing a bill which will simplify the tax code and reduce taxes on middle-income families. Included in the bill will be the elimination of the alternative minimum tax (AMT), an often overlooked aspect of the tax system that has become a major source of tax revenue in recent years. Rep. Charles Rangel (D-N.Y.) plans to keep his proposal revenue-neutral, but eliminating the AMT would cost the government $872 billion over 11 years, which when combined with $75 billion to $100 billion increases to the child tax credit, the earned income tax credit and the standard deduction, would create a total package of nearly $1 trillion. Rangel has been tight-lipped about how he plans to offset the costs, but he hinted that he may attempt to close the estimated $345 billion annual “tax gap,” an issue that the National Association for the Self-Employed (NASE) follows closely. “While we fully support simplifying the tax code, we’re weary of attempts to do so by targeting the tax gap,” said Kristie Darien, executive director of the legislative offices of the NASE. “Many of the proposals for closing the tax gap that are currently being discussed would only add to the already overwhelming paperwork that the self-employed have to wade through.” For more information on the legislative priorities of the NASE, visit http://advocacy.NASE.org.

Male And Female Entrepreneurs Not So Different, Study Finds A new study by the SBA Office of Advocacy is shedding light on the differences between male- and female-owned businesses. The authors performed an in-depth study of what factors, by gender, led to successful startups. It included an examination of business owners’ expectations, reasons and motivations for starting a business and types of businesses, among others. Males and females tend to gravitate towards different types of startups. The authors of the study found that male entrepreneurs were more likely to found technologically intensive businesses, businesses that lose their competitive advantage more quickly, and businesses that have a less geographically localized customer base. While female entrepreneurs tended to prefer ventures that were low risk and, thus, less likely to be revenue generators, females were more likely to make positive returns on their business investment. However, males were more likely to own or purchase their business. Educational background was similar but, more often, men had more previous business experience and clocked more overall hours than their female counterparts. To view the entire study visit the research section of the Advocacy Web site at http://www.sba.gov/advo/research/wkpapers.html.   Employer Health-Insurance Premiums Still Costly   Health Insurance premiums for employer-sponsored programs rose just over six percent in 2007, higher than the overall inflation rate and wage increases, according to a study released by the Kaiser Family Foundation and Health Research and Educational Trust. While the increase was lower than the eight percent figure reported for 2006, family and individual coverage premiums were still pricey. The study found that the average premium for family coverage in 2007 is $12,106. Employees must allot nearly $4,000 to cover their portion of a family policy. “We’re seeing some moderation in health-cost increases, but premiums for family coverage now top $12,000 annually,” Kaiser President and CEO Drew E. Altman, Ph.D. said. “Every year health insurance becomes less affordable for families and businesses. Over the past six years, the amount families pay out of pocket for their share of premiums has increased by about $1,500.” To read more about the study, visit http://www.kff.org/insurance/7672/index.cfm. For information on health care options and cost-cutting tips for micro-businesses, visit the NASE Health Resource Center at http://health.nase.org/. Share your experiences as a micro-business owner! 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. If getting involved in the legislative process suits you better, go to the Advocacy page and “Tell Your Story” (http://advocacy.nase.org/issues/issues.asp). You have the option of allowing the NASE to share your micro-business story with your Members of Congress. By allowing the NASE to tell your story to legislators, you can play a vital role in illustrating the real life consequences and affects of issues they debate on a daily basis.