National Association for the Self-Employed – Business Benefits, Educational Resources and Access to Health Insurance for Small Businesses and Startups

Top analysts report that the United States economy contines to limp along, and no one knows that better than the self-employed and micro-business. Seventy percent of entrepreneurs consider their micro-business a career, one that presently supplies the main source of income to their households. According to data released by the National Association for the Self-Employed (NASE), micro-business owners’ top concerns in the current economic decline are that they will be forced out of business, must put off retirement, and will face an increased cost of living.

The continuing credit crisis is causing major cash-flow issues for the self-employed and they are finding it increasingly difficult to obtain needed financing and credit. The majority of business owners indicated that they were experiencing decreases in their lines of credit from banks and financial institutions as well as lower limits on credit cards. Home equity loans, which are often used by micro-business owners for startup or expansion, have also proven futile since many houses are worth less than they were just a few years ago.

The NASE is urging the Obama Administration and Congress to pass an economic stimulus measure that is targeted to the small business and self-employed communities. We urge passage of the following proposals:

Making permanent the individual income tax rate cuts from 2001 and 2003 for those making below $250,000 average household income;
The creation of a $1,500 standard home office deduction option;
A two year expansion of the self-employment tax deduction on health insurance for sole-proprietors that was included in the Small Business Jobs Act;
Expansion of the Small Business Health Care Tax Credit to include self-employed business owners.

Top Federal Legislative Issues

Related Content

Fairness in Tax Compliance
The NASE feels that rather than adding to the burden of compliance faced by micro-business taxpayers through increased regulations, the goal should be to simplify the tax regulations.
Access to Affordable Health Coverage
The National Association for the Self-Employed (NASE) strongly supports proposals such as health care tax credits, a self-employment tax deduction on health insurance premiums, expansion of both Health Reimbursement Arrangements (HRAs) and Health Savings Accounts (HSAs), and pooling arrangements for small business as important steps to creating an equitable environment for micro-businesses and the self-employed to purchase affordable, quality health coverage.
Self-Employment Tax on Health Insurance Premiums
To achieve tax equity between all forms of business entities, the self-employed must be able to exclude health insurance premiums from self-employment tax regardless of the entity form under which they choose to operate.
Improving Our Health Care System
The NASE supports efforts to improve our health care system to make it easier for individuals to attain and understand health coverage.
Home Office Deduction Simplification
The NASE believes that the home office deduction must be simplified and expanded to allow home-based businesses to easily utilize the deduction.