NASE News

Washington Watch - June 22, 2011

NASE — Wednesday, 22 June, 2011 13:00:00 EST

Deficit Reduction, Debt Ceiling Talks Continue

Deficit reduction talks continue in the House and Senate as Vice President Joe Biden works to broker a deal between Republicans and Democrats, in an effort to come to an agreement that will allow Congress to raise the nation's $14.3 billion debt ceiling.

A chasm still exists between Democrats, who wish to cut spending and cut tax breaks for the wealthy, and Republicans, who refuse tax increases and would rather focus on cutting entitlement spending. Biden is working with a bipartisan group of lawmakers with the goal of coming to an agreement by July 1st. That would give Congress a month to finalize the legislation, vote on it and analyze amendments if need be to reach an August 2nd deadline. Treasury Secretary Timothy Geithner had previously stated that he can delay a government default until that date.

Earlier this week, Senate lawmakers indicated a willingness to pass several short-term debt ceiling increases, while top House lawmakers have frowned upon dragging the process out in such a way.

Stay tuned to Washington Watch for updates on this topic.

7 Ways To Help Entrepreneurs Help The Economy (The Atlantic)

The NASE was recently featured in The Atlantic for our views on extending the self-employment tax deduction and permanently increasing the deductible funds to $10,000 for startups.

Read the entire article here.

House Committee For Small Business Holds Hearing On Regulation Flexibility

On June 15, the House Committee on Small Business held a full committee meeting entitled, “Lifting the Weight of Regulations: Growing Jobs by Reducing Regulatory Burdens.”

The hearing examined H.R. 527, the Regulatory Flexibility Improvement Act of 2011, and H.R. 585, the Small Business Size Standard Flexibility Act of 2011. The two bills are designed to remove loopholes in the Regulatory Flexibility Act (RFA), as amended by the Small Business Regulatory Enforcement Fairness Act (SBREFA), and strengthen the power of the Office of the Chief Counsel for Advocacy.

House Republicans remained adamant in their call for regulatory reform. Committee Chairman Sam Graves (R-Mo.) said although regulations have a place in government, he supports the Regulatory Flexibility Improvement Act of 2011 as it will require federal agencies to better assess the impact of regulations on small businesses and other entities.

Meanwhile, Ranking Member Nydia Velázquez (D-N.Y.) explained that regulations and rules are not the problem of greatest concern amongst small business owners. Furthermore, Congresswoman Judy Chu (D-CA) said more government and private stewardship is needed in order to grow the economy.

The NASE is highly supportive of the Regulatory Flexibility Improvement Act of 2011, as it will allow small business representatives to become more active in the creation of rules and regulations facing the industry. It is unfortunate that a similar bill, Olympia Snowe’s (R-Maine) Freedom from Restrictive Excessive Executive Demands and Onerous Mandates Act of 2011 did not pass the 60 vote threshold in the Senate.

House Small Business Hearing On Dodd-Frank’s Impact On Small Biz Lending

The June 16th hearing, “The Dodd-Frank Act: Impact on Small Business Lending,” was called by the House Small Business Committee’s Subcommittee on Economic Growth, Capital Access and Tax. The hearing was sprinkled with mixed reviews of the Dodd-Frank Act, while highlighting the importance of considering its effects on small business during the rule-making process. The House Republicans have continued efforts to repeal or weaken this sweeping Wall Street reform bill moved by the Democratic Congress last year.

The hearing was led by Chairman Joe Walsh (R-Ill.) and called representatives from three financial institutions and William Daley, the Legislative and Policy Director of Main Street Alliance. The testimonies from Thomas Boyle of the State Bank of Countryside, Mark Sekula of the Randolph-Brooks Federal Credit Union, and Greg M. Ohlendorf of First Community Bank and Trust echoed a similar sentiment concerning the burdening cost of compliance, the overreach of the Consumer Financial Protection Bureau (CFPB), and the restrictions on lending dollars and liquidity. Ohlendorf particularly hailed the debit interchange, or “Durbin,” amendment, placing a cap on the debit card swipe fee collected by banks, as the most troubling aspect of the Dodd-Frank Act. The NASE has written about this amendment in previous editions of Washington Watch.

Daley, the former mayor of Olympia, Washington, testified to the Dodd-Frank Act’s benefits for small business, specifically swipe-fee reforms, the CFPB, and the restored focus on traditional lending. He later referenced tactics, such as repealing legislation that offers interest on reserve dollars, to tap into the $1.2 trillion in bank reserves as a means to increase the availability of capital.

Washington Watch - May 11, 2011

NASE — Wednesday, 11 May, 2011 13:00:00 EST

Tax Gap Measures Targeting The Self-Employed

With the additional 1099 reporting requirement now repealed, the NASE turns its attention back to another tax gap closing measure - the three percent withholding provision passed into law in 2005. The law requires Federal, state and local governments to withhold taxes from government contractors. In 2009, President Obama signed a law delaying the original 2011 implementation until 2012.

The IRS has since announced that it will further delay the requirement until 2013. The agency will require withholding and reporting to payments made after December 31, 2012. Furthermore, payments made under contracts existing on December 31, 2012, that are not materially modified, will be exempt until January 1, 2014.

Congress has a few bills currently devoted to repealing this requirement. The House bill is H.R.674, introduced by Representative Wally Herger (R-Calif.). There are two Senate bills, S.89, introduced by Senator David Vitter (R-La.), and S.164, introduced by Senator Scott Brown (R-Mass.).

Though the NASE has a very small number of members which contract with the government, we are deeply concerned about the precedent this new withholding requirement sets for future regulations on business owners. For those micro-business owners that are government contractors, the withholding in this provision is based on revenues from gross payments by the government with no relationship to a companies’ taxable income and will impinge on company cash flows needed for day-to-day operations. Those small businesses interested in contracting with the government will be deterred due to this regulation.

Contact your member of Congress here to let them know this law needs to be repealed.

House Approves Repeal Of Funding For Health Insurance Exchanges

Under the Affordable Health Care Act, states will be required to create insurance pooling mechanisms known as Exchanges to increase competition in the insurance market and improve the accessibility and affordability of coverage for individuals, the self-employed and small businesses. The House recently passed a bill (H.R. 1213) to strip funding for states to establish these Exchanges.

Creation of Exchanges, which are health marketplaces within states, is one of the positive components of the health reform law. The goal of these new state-based exchanges is to increase competition in the insurance market and improve the accessibility and affordability of coverage for individuals, the self-employed and small businesses. The NASE strongly urges lawmakers to focus on repealing and improving the more burdensome and unworkable provisions in the health reform law rather than stripping the items that may improve the health insurance market for America's smaller businesses.

As with other bills the House has passed to defund various parts of the health care law, this bill is likely to stall in the Senate.

Stay tuned to Washington Watch for updates on the legislation.

HHS Testifies Before Congress On Agency Priorities

The House Education and the Workforce Committee recently held a hearing, titled "Policies and Priorities of the U.S. Department of Health and Human Services." Secretary Kathleen Sebelius of HHS testified on the president's 2012 budget proposal and how the agency's priorities will fit within the plan.

In his opening remarks, Chairman John Kline (R-Minn.) described the fiscal challenges facing the nation and the president’s budget proposal. "If we adopt the president’s plan, the Congressional Budget Office reports the federal government will spend $46.2 trillion, impose $1.5 trillion in new taxes, and add roughly $9 trillion to the national debt over the next decade. This is unacceptable.” Chairman Kline continued, "If we fail to promote responsible reforms and make tough choices, our nation will no longer be able to provide assistance to those who need it most.

Secretary Sebelius pointed to several areas in the proposal that included the following funding cuts and changes:

Cuts the Community Services Block Grant in half (by $329 million) and injects competition into grant awards.
Cuts to the Low Income Home Energy Assistance Program ($2.5 billion) bringing it back to the 2008 level appropriated prior to the spike in energy prices.
The Budget redirects and increases funding in the Centers for Disease Control to reduce chronic disease. Rather than splitting funding and making separate grants for heart disease, diabetes, and other 2 chronic diseases, the Budget proposes one comprehensive grant that will allow States to address chronic disease more effectively.
The Budget proposes refocusing the Senior Community Services Employment program to better integrate unemployed seniors into their communities through community service employment assisting other seniors to stay in their homes.
The Budget redirects prevention resources in SAMHSA to fund evidence-based interventions and better respond to evolving needs. States and local communities will benefit from the additional flexibility while funds will still be competed and directed toward proven interventions.

Read the rest of Sec. Sebelius' testimony.

Watch a webcast of the hearing, including a question/answer session.

GOP, Dems Unveil Economic Boosting Agendas

House Democrats are putting the spotlight back on their "Make It in America" agenda to increase American manufacturing and exports. Their small business priorities include support to high-tech firms and research and development outreach, a 25% tax credit for investment in high-tech and bio-tech businesses, the establishment of tax-preferred business start-up accounts and block grants to underserved areas to increase small business development.

The plan was made public soon after Senate Republicans unveiled a jobs bill. Their plan contains provisions to add a balanced budget amendment to the Constitution, allow small businesses to permanently write off equipment purchases, and provide additional risk pools for small business. The plan would also prohibit the Environmental Protection Agency (EPA) from regulating greenhouse emissions under the Clean Air Act.

Washington Watch Online

Visit Your Voice in D.C. to view archived editions of Washington Watch. While you’re there, read the latest updates from the Washington, D.C. office, write your Congressperson and find out how you can join the fight for micro-business.

Washington Watch - March 16, 2011

NASE — Wednesday, 16 March, 2011 13:00:00 EST

Budget Negotiations Continue

Congress is expected to clear another stopgap funding measure, which will be in effect for three weeks. The current Continuing Resolution (CR), or temporary budget, is set to expire on March 18. The new measure is expected to cut $6 billion from funds unused in the 2010 Census operation.

The House GOP has said it would like to cut $100 billion from the 2011 budget. Thus far, Senate Democrats have refused House bill language that would cut $57.5 billion and language that would block funding to President Obama's health care law.

President Obama implored Congress not to cut education funding, referring to a House-passed bill that would cut $12 billion from the Department of Education's budget.

Read more about the budget process on the NASE Blog here.

Small Biz Bills Move In Congress

The Senate is set to analyze a series of small business legislation and Minority Leader Mitch McConnell, R-Ky., has indicated that it may be used as a vehicle for spending reductions (proposed as amendments to the bill).

One bill is for the reauthorization of the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grant programs, both operated by the Small Business Administration. The White House has signaled its support for the bill and the Senate last year passed a similar bill that would extend funding to the programs for a number of years, but it did not clear the House. The NASE is very supportive of federal small business programs with a proven track record.

A small-business amendment may be offered to repeal the excessive reporting requirement for Form 1099, passed in the health care law. The bill, introduced by Mike Johanns (R-Neb.) would have an offset of reclaiming parts of underused tax credits for low- to middle-income individuals. While not necessarily advocating for a repeal of the measure, the NASE strongly recommends that Congress take action on the onerous 1099 requirement, so that the self-employed are not hit with a huge paperwork burden come 2012.

Senate Approves Patent Overhaul Bill

Congress is tackling patent reform for the first time in decades and the Senate has already signed off on a measure to do so. Supporters say that the bill is a long time coming and that they hope it will travel quickly through the House. There is one issue that the NASE finds particularly troubling, and that involves the issue of who is granted a patent. As it stands, the rules designate that the first person to invent is granted the patent, instead of the first to file. The "first to invent" provision requires dated proof that shows a person or group came up with the idea initially. This has been seen as a nod to small businesses, who may not have lawyers on staff to handle to paperwork and negotiations involved in obtaining a patent. The new rule would be changed to "first to file," meaning that whomever submits their paperwork to the Patent and Trademark Office first will be granted the claim.

Under current law, small businesses receive a break on filing fees. They would continue to get such relief, while micro-businesses would get a new additional reduction. The fees for maintaining patent applications and patents are reduced by 50 percent for small entities. Under the bill, the fees shall be reduced by 75 percent for micro-businesses.

Washington Watch Online

Visit NASE Advocacy to view archived editions of Washington Watch. While you’re there, read the latest updates from the Washington, D.C. office, write your Congressperson, and find out how you can join the fight for micro-business.

Washington Watch - November 24, 2010

NASE — Wednesday, 24 November, 2010 11:00:00 EST

Editor's Note: Leadership Races Complete

As Congress prepares for the 112th Congress next year, please find below the new leadership team in the House of Representatives for both parties. Many familiar names here.

House of Representatives (112th Congress, begins in January)

Majority (Republican) Leadership

Speaker: John Boehner
Majority Leader: Eric Cantor
Majority Whip: Kevin McCarthy

Minority (Democratic) Leadership

Minority Leader: Nancy Pelosi
Minority Whip: Steny Hoyer
Assistant Minority Leader: Jim Clyburn

Repeal Of 1099 Measure To Come To A Vote

When Congress returns from Thanksgiving recess, the Senate is set to vote on two measures, one introduced by Max Baucus (D-Mont.) and one by Mike Johanns (R-Neb.), that would repeal the increased Form 1099 reporting law. The bills are both amendments to the Senate Food Safety Modernization Act, S. 510.

The NASE supports efforts to repeal the legislation, along with other key small business thought leaders. Recently, both SBA Administrator Karen Mills and Chief Counsel for Advocacy Winslow Sargeant voiced their opposition to the law that would increase paperwork exponentially for small-business owners.

Read past NASE coverage of this issue, including survey results, here.

Estate Tax News Update

Good news may be pending for those in favor of estate tax relief. Champions of the cause, Sens. Blanche Lincoln (D-Ark.) and Jon Kyl (R-Ariz.), have supported efforts to expand relief and it is possible they might get a bill introduced during lame duck. Their earlier legislation on the topic reads as follows:

"“Mr. KYL (FOR HIMSELF AND MRS. LINCOLN) moves to commit H.R. 5297 to the Committee on Finance with instructions to report the same back to the Senate within 1 day with changes to provide a 35 percent estate tax rate phased in over 10 years, a $5,000,000 exemption amount phased in over 10 years and indexed for inflation, a stepped up basis for inherited assets, and, for decedents dying in 2010, an election under which no estate tax would be imposed and assets acquired from the decedent would receive a modified carryover basis. The Committee is further instructed to offset the difference in revenue loss between a permanent 45 percent estate tax rate with a $3,500,000 exemption amount and the proposed changes described in the preceding sentence.”

While many self-employed business owners are not affected by the estate tax, certainty in the tax code is essential for proper business planning. Thus, the NASE has long supported a permanent compromise on this issue rather than temporary fixes over the years.

Stay tuned to Washington Watch for more updates on this important issue.

Expiring Bush Tax Cuts, AMT

Still hot topics for the lame duck session are the expiration of the Bush tax cuts, which the NASE believes need to be addressed (see last week's Washington Watch).

There is also the issue of the expiring patch for the Alternative Minimum Tax. In 2010 the AMT affects more Americans than was ever intended and affects almost all small business owners even if no tax results from the additional calculation. The basic premise of the AMT system is that all people should pay their fair share, so the AMT provides for an alternate tax calculation that eliminates many deductions, exemptions and credits so that all taxpayers pay some tax.

Washington Watch - October 6, 2010

NASE — Wednesday, 6 October, 2010 14:00:00 EST

Congress Adjourns To Campaign For Midterms

The House and Senate wrapped up last week and headed back to their home districts for some last-minute campaigning before the midterm elections. When Congress returns in November for the lame duck session, it is set to take up expiring 2001 and 2003 tax cuts. It is unclear, at this point, if the extended 1099 reporting requirements will be addressed at that time.

During Congress' recess, Washington Watch will go on break, as well. In the meantime, stay up-to-date by visiting our blog.

Congress Passes Continuing Resolution

Before Congress left for their home states, they were able to vote to fund the federal government for another few months with a Continuing Resolution (often referred to simply as the "CR"). A CR is a temporary extension of the federal budget, in this case until December 3rd, when no final agreement has been reached. Fiscal year 2011 began October 1st, but neither side of the aisle had been able to come to an agreement on bugetary cuts for that year, seen as a necessary first step in reducing the federal deficit. Extending the CR at current levels allows Congress to put off tough decisions regarding program cuts until after the midterms, an idea attractive to both Republicans and Democrats who are currently campaigning.

Upon their return, the House and Senate lawmakers will square off on the expiring 2001 and 2003 tax cuts. House leaders and the White House propose extending the tax cuts for all but those with household incomes beginning at $250,000, meaning the first $250,000 would be subject to the tax cut but amounts above that would be taxed at pre-2001 rates. Republican leaders wish to extend the tax cuts for everyone.

Read more about the Continuing Resolution and predictions on the efficacy of Congress, post-election:

White House Hosts Women's Entrepreneurship Summit

Small Business Administrator Karen Mills took to the White House Blog to comment on the Administration's increased attention to women-owned firms and their access to federal contracts. She announced the rollout of the Women's Contracting Rule would bring additional dollars to around 83 industries in which women-owned businesses have historically held fewer contracts.

According to the blog, after the rule is published in the Federal Register, the SBA will be working closely with the federal agencies to give them the systems and the training they need to set-aside more contracts for small, women-owned firms. Administrator Mills expects for the program to be operational in about four months (early 2011).

Read her entire comments here.

Washington Watch Online

Washington Watch - September 15, 2010

NASE — Wednesday, 15 September, 2010 11:00:00 EST

Note From The Editor: Congress Is Back In Session

House and Senate lawmakers are back in Washington, D.C. this week and have a lot to get done before they head out to continue their campaigning for the November midterm elections. The Senate is expected to vote on two key small business proposals. The first is a vote on amendments addressing the expanded Form 1099 reporting requirement included in the health reform law (see article below).

The second big vote, after much chiding from President Obama, is on the Small Business Jobs and Credit Act. The legislation has gotten tangled up on election season politics and will see a vote in the Senate by the end of this week.

Stay tuned to www.NASE.org for the latest updates on these pieces of legislation.

President Obama Talks Economy And Small Business

President Obama took to his podium to discuss the latest unemployment numbers, where the economy is headed and how small businesses are helping to spur that growth. Here are a few excerpts from the president's speech in relation to small businesses:

"These proposals include a more generous, permanent extension of the tax credit that goes to companies for all the research and innovation that they do here in America. And I’ve proposed that all American businesses should be allowed to write off all the investments they do in 2011. This will help small businesses upgrade their plants and equipment, and will encourage large corporations to get off the sidelines and start putting their profits to work in our economy."
"[The Small Business Jobs and Credit Act] is a bill that does two main things: It gives small business owners tax cuts, and it helps them get loans. It will eliminate capital gains taxes for key investments in 1 million small businesses. It will provide incentives to invest and create jobs for 4 million small businesses. It will more than double the amount some small business owners can borrow to grow their companies."

The NASE is pleased that the President and Administration has been promoting passage of the Small Business Jobs and Credit Act. It’s about time policymakers prioritize helping America's smallest businesses -- the self-employed.

In addition, the NASE believes it is important that the Administration and Congress address the individual income tax rates (Bush tax cuts) that are set to expire this year. Many small business owners and self-employed Americans pay taxes on their business income based on the individual income tax rates. If the rates are allowed to expire, many small business owners will receive a tax increase in this ailing economy.

The President remarked that the Administration has cut taxes for small businesses eight times during the past 18 months. Unfortunately, micro-businesses and self-employed receive minimal benefit from the majority of these tax cuts.

To read the transcript of the session, please click here.

NASE Commentary: Legislation Provides Needed Tax Breaks, Funding For Small Business

This piece also appeared in the Washington Post publication, Capital Business.

Last week, President Obama proposed to spur job growth in small businesses through an extension of a tax credit used when they spend money on research and innovation in the United States. While this is a step in the right direction, it will do little to help our constituents -- the self-employed.

Government policy often favors the larger small business, regarding the self-employed merely as people working on their hobbies at home in their pajamas and bunny slippers. But in reality, the self-employed represent 78 percent of small businesses and contribute $1 trillion to the economy.

Congress got it right with the Small Business Jobs and Credit Act of 2010, a bill that would provide needed funding, tax breaks and increased outreach to businesses. The provisions of the legislation have consistently received bipartisan support. However, the bill languished in the Senate in July mostly due to posturing and politics on both sides of the aisle.

As Congress returns from recess, it's time for lawmakers to do for small business what they did for Wall Street. Instead of merely talking about how small business will lead the economy out of the downturn, Congress needs to take action in passing the legislation to give small business the tools and support it needs to recover. By putting off this legislation, lawmakers are turning their backs on the nation's most plentiful job creators and contributors to our economy.

Read the rest of this commentary by clicking here (NASE blog) or here (Washington Post site).

Status: IRS Form 1099 Expanded Reporting Requirement

At odds Tuesday were two amendments, one drafted by a Republican, one a Democrat, to combat the expanded Form 1099 reporting requirement found in the health reform law. Both pieces of legislation were amendments to the Small Business Jobs and Credit Act, which the NASE strongly supports. The key issue is how does the Senate address this very unpopular regulatory burden set to hit small business in 2012.

The amendment of Sen. Mike Johanns, R-Neb., would repeal the provision completely while borrowing money from a preventative care fund and lowering the standard required for the individual mandate to purchase health coverage. The amendment of Sen. Bill Nelson, D-Fla., would modify the expanded reporting requirement by exempting businesses with fewer than 25 employees from having to comply with the new regulation. In addition, it would raise the reporting threshold from $600 to $5,000 of goods and services and create an exemption list of companies that small business owners would not have to issue Form 1099s to, such as public companies and utilities.

After both proposals failed to obtain enough votes for passage, Sen. Mary Landrieu of Louisiana and Chair of the Committee on Small Business and Entrepreneurship agreed to address this important small business issue by introducing separate legislation to be taken up at a later date.

The NASE strongly urges policymakers to address this new compliance burden faced by the small business community. The self-employed and micro-businesses will be particularly disadvantaged should this expanded Form 1099 reporting requirement take effect prior to any mitigating legislation. NASE survey data shows that these businesses will face an over 1250% paperwork increase under the current regulation set to begin in 2012. Please visit the NASE Legislative Action Center to let your members of Congress know you support removing this burden for America's smallest businesses.

Washington Watch Online

Washington Watch - August 11, 2010

NASE — Wednesday, 11 August, 2010 14:00:00 EST

Small Biz Jobs Bill Update: Congress On Recess

The Small Business Jobs Act (H.R. 5297) would create a $30 billion lending fund for small businesses, offer $12 billion in tax breaks and strengthen SBA outreach and lending programs. The NASE supports this legislation, as does the White House.

Due to a short window of opportunity and partisan rangling, the Small Business Jobs Act has been put on the back burner until the Senate returns next month. Senate Majority Leader Harry Reid, D-Nev., set the stage for mid-September votes on Democratic and Republican proposals to repeal increased 1099 reporting passed under the health care law. Sen. George V. Voinovich, R-Ohio, has agreed to be a swing vote (giving Democrats the coveted 60) as long as the Republican-offered option is voted upon first.

At odds are Sens. Mike Johanns, R-Neb., and Bill Nelson, D-Fla., both of which wish to have an amendment attached to H.R. 5297 targeting the 1099 provision.

Johanns’ amendment would do away with the provision completely while borrowing money from a preventative care fund and lowering the standard required for the individual mandate to purchase health coverage. Currently, the 1099 proposal is expected to net the federal government an additional $19.2 billion and, thus, required an offset to comply with pay-as-you-go rules in Congress. Nelson's amendment would exempt from the law businesses with fewer than 25 employees and purchases made by credit card. It would would raise the reporting threshold from $600 to $5,000.

The NASE is urging members to contact their legislators this month to ask for their support of the Small Business Jobs Act. For more information, please visit the NASE Blog.

IRS Webinar On Tax Provisions Of The Affordable Care Act (ACA)

Learn about the tax provisions of the Affordable Care Act (ACA recent health care legislation) and resources available at a FREE IRS Webinar on September 9, 2010 at 2 p.m. Eastern.

The IRS’s Small Business/Self-Employed Division is presenting this webinar especially for small-business owners and the self-employed. Learn about Affordable Care Act’s current tax provisions and where to find future updates.

Click on this link to register (http://www.visualwebcaster.com/IRS/70323/reg.asp?id=70323) for this informative presentation.

To get the latest IRS news and products and services, subscribe to e-News for Small Businesses on IRS.gov at http://www.irs.gov/businesses/small/article/0,,id=154825,00.html, click “Subscribe Now” at the bottom of the page and enter your e-mail address.

HHS Announces Availability Of New Health Center Grants

U.S. Department of Health and Human Services Secretary Kathleen Sebelius announced the availability of up to $250 million in grants for New Access Points for the delivery of primary health care services for underserved and vulnerable populations under the Health Center Program. The funds, made available by the Affordable Care Act, will be awarded by the Health Resources and Services Administration (HRSA).

A new access point is a new full-time service delivery site that provides comprehensive primary and preventive health care services. New access points improve the health status and decrease health disparities of the medically underserved populations to be served.

“These funds reflect the Administration’s steadfast commitment to improving and expanding access to vital primary health care services,” said Secretary Sebelius. “From our cities to our smallest towns, each health center has an important role to play, ensuring access to services in its community. Together they have a critical impact on the health care status of those most in need across the nation.”

Organizations eligible to compete include public or nonprofit private entities, including tribal, faith-based and community-based organizations who meet health center funding requirements. Current HRSA grantees may apply, as well as organizations applying for the first time.

For more information please visit www.grants.gov.

Survey: Can You Keep Your Health Plan Once Health Reform Kicks In?

One big promise made during the reform debate was that you will be able to keep the health plan you currently have, if you like it. To follow up on this promise, the Administration recently issues new regulations on "grandfathered" or existing health plans. Learn more and take this survey to tell us if you think you will be able to keep your health plan.

Click here to take survey: http://www.surveymonkey.com/s/S7NF62X

Washington Watch Online

Washington Watch - June 9, 2010

NASE — Wednesday, 9 June, 2010 15:00:00 EST

Small Business Creation Act of 2010

Senator Olympia J. Snowe (R-Maine), Ranking Member of the Senate Committee on Small Business and Entrepreneurship, recently sent a letter urging President Barack Obama to invest in American small businesses to grow the economy and create new jobs. Sen. Snowe has introduced the Small Business Job Creation Act of 2010 (S. 3103), which includes provisions to help small businesses create new jobs.

“Given the relatively stagnant unemployment rate, which has hovered near 10 percent since last August, it is evident that our economy requires a significant jolt to prolong a sustained recovery,” wrote Sen. Snowe. “That is precisely why it is imperative we invest in our nation’s small businesses to grow our economy and create new private sector jobs immediately.”

In the letter, Sen. Snowe encouraged the President to ensure that Congress passes a small business job creation bill before the July 4th recess.

The legislation Sen. Snowe introduced includes provisions to continue the increase in Small Business Administration (SBA) lending, boost exporting by America’s small businesses, and provide tax and regulatory relief to the smallest firms.

“As I have repeatedly said, a jobless recovery is not a true recovery,” Sen. Snowe wrote. “And frankly, the unemployment figures released today belie the fact that our nation’s economy still faces an arduous and uphill battle to fully recover from the calamitous effects of the recent recession.”

Sen. Snowe noted that the proposed measures in the Small Business Job Creation Act of 2010 not only align with President Obama’s stated goals for the nation’s economic recovery, but also passed the Senate Small Business Committee with broad, bipartisan support. According to Sen. Snowe, the legislation could help alleviate the uncertainty in the national marketplace and spur the job-creation potential of the 27 million American small businesses.

S Corp Legislation Still In Play In Senate

As previously reported in “Washington Watch,” in NASE Recent News and on the Staff Blog, a package of tax cuts and benefit extensions (H.R. 4213) in consideration before the Senate includes a revenue-raising offset that the NASE and other small business groups would like to have removed.

One particular offset would raise $11.2 by requiring the owners of certain S corporations in fields such as architecture, medicine or law to pay payroll taxes on their share of the company’s profits.

While current law requires that S corporations pay employees reasonable compensation as wages, and that those wages are subject to payroll taxes, profits that go to owners of the companies are not subject to payroll taxes. Supporters of the offset argue that this provides an opportunity for tax evasion.

The provision would affect companies where the skill and reputation of three or fewer employees constitutes the business’s biggest asset. The NASE believes the new provisions should be narrowed, especially since the Internal Revenue Service already has the ability to enforce existing law related to S corps. The Senate is expected to consider the measure before the July 4th recess.

Visit the NASE's Legislative Action Center to tell your Members of Congress that you oppose this legislation.

Top Advocacy Blog Posts

Want to know about the latest issues the NASE Advocacy team is tackling? Peruse these top blog posts to find out what's going on in Washington, D.C., how it affects your business and what the NASE is doing about it.

Washington Watch Online

Washington Watch - May 26, 2010

NASE — Wednesday, 26 May, 2010 14:00:00 EST

New Law Increases Paperwork for Self-Employed Over A Thousand Percent

Many of the nation’s entrepreneurs are about to become more familiar with IRS Form 1099. According to a new law set to go into effect in 2012, business owners will be required to submit a Form 1099 for every payment made via check or credit card to vendors for services, inventory or property over $600 annually. A new survey by the National Association for the Self-Employed (NASE) found that the self-employed and micro-businesses (those with fewer than 10 employees) are overwhelmingly expecting this new regulatory burden to greatly or somewhat increase the amount they spend on tax preparation.

The Form 1099 reporting system has historically been utilized for payments made to independent contractors. According to NASE’s survey, micro-businesses reportedly received an average of four Form 1099s from clients or customers and issued an average of two Form 1099s to contractors in the most recent tax year. Under the new expanded regulation, small-business owners have estimated that they will have to issue roughly 27 Form 1099s, mostly to large corporations. This is a 1250% increase in the amount of paperwork that will be required of small-business owners come 2012.

“To the mom and pop shop, time is money, and this new regulation is going to require plenty of both,” remarked Kristie Arslan, NASE executive director (legislative offices). “The bottom line is that the Form 1099 expanded reporting requirement affects companies small and large, increasing the number of forms issued and received many times over.”

As part of the new expanded Form 1099 reporting requirement, businesses will be required to obtain accurate Taxpayer Identification Numbers (TINs) from all qualifying vendors. Should the business owner be unable to do so, they would be required to withhold a portion of that vendor payment and send it to the IRS. With over 40 percent of survey respondents still preparing their taxes on their own, this added administrative workload will significantly increase the time business owners spend on paperwork and/or force them to hire an accountant, adding to the cost of doing business in this difficult economic time.

For more information, including survey results, click here.

National Small Business Week

According to the Small Business Administration (SBA), approximately 60 percent of Americans own or work for a small business. The NASE is teaming up with the SBA again to sponsor National Small Business Week 2010. For nearly fifty years, one week has been set aside annually in order to honor the contributions of the nation’s small business community. The NASE works with the SBA to help increase access to capital and lends our support to federal initiatives that have proven helpful to micro-business growth.

“This week, we celebrate the role of entrepreneurs and small businesses in our national life. They are the engine of our prosperity and a proud reflection of our character,” said President Barack Obama. “A healthy small business sector will give us vibrant communities, cutting edge technology, and an American economy that can compete and win in the 21st century.”

The full text of the President’s National Small Business Week proclamation can be found at:
http://www.whitehouse.gov/the-press-office/presidential-proclamation-small-business-week

"This past year has seen a new social and political focus on the importance of micro-businesses and the self-employed,” said Robert Hughes, NASE president. “Small Business Week offers a formal opportunity to join in recognizing the innovative potential of the largest business type in the nation – self-employed firms."

For information on National Small Business Week, please visit http://nationalsmallbusinessweek.com/.

President Obama Introduces Legislation To Cut Unnecessary Spending

Legislation recently sent to Congress by President Barack Obama would establish a new tool to reduce wasteful or unnecessary spending. The Reduce Unnecessary Spending Act of 2010 would allow the President to submit a package of rescissions shortly after a spending bill is passed. Congress would be required to consider the President’s recommendations as a package, without amendment, and with a guaranteed up-or-down vote within a specified timeframe. The Act will empower the President and Congress to eliminate unnecessary spending while discouraging waste in the first place, and is part of a larger effort the President has undertaken to cut wasteful spending.

Health Care Law Authorizes Federal Funding For School Health Centers

The Patient Protection and Affordable Care Act (PL 111-148) gives the federal government a role in public school-based health care centers for the first time. The movement to embed health care centers in public schools, in order to provide physical and mental health services to students in the place where they spend most of their day, has grown over the past three decades with funding support from states, localities and private foundations.

There are currently 2,000 school-based centers serving 1.7 million students in 44 states. Supporters say that while there are centers in relatively few of the nation’s 99,000 public schools, the centers are important for lower-income districts.

While the centers differ, they often include providers such as nurse practitioners, who can give immunizations, manage chronic conditions like asthma, conduct physicals and make referrals. Centers also may have psychologists on staff, or offer dental services. Centers often serve children from low-income families who qualify for Medicaid but are on waiting lists for care, those without insurance or with high deductibles, or undocumented immigrants.

The House version of the health reform legislation authorized $50 million for fiscal year 2011 and beyond for the centers, however the Senate version of the bill, which became law, did not specify a dollar amount for school-based centers. Advocates are working to get a concrete amount of funding from the appropriations subcommittees. In addition, the law provides $200 million over four years to the centers for capital improvements through grants. While supporters say that the real need is funding for ongoing operations, they hope there is flexibility in the grant regulations on how funds can be used and that minimum grant levels are low to allow the smallest centers to apply.

Washington Watch Online

Washington Watch - May 12, 2010

NASE — Wednesday, 12 May, 2010 10:00:00 EST

Federal Government, States Working To Implement High-Risk Pools

In one of the first of many deadlines associated with the new health care reform law, states had until the end of April 2010 to inform the Department of Health and Human Services (HHS) of their decision to establish a high-risk insurance pool.

Seventeen states have said they will allow the federal government to establish its own high-risk pools in their states, while 29 states and the District of Columbia have said they will create their own pools using federal funding. Florida and Arizona have yet to respond to HHS about their decision despite the passage of the deadline, while Rhode Island and Utah have requested applications and additional information, and have indicated they will make decisions later.

The high-risk pool program has $5 billion in funding and is a temporary measure until 2014, when insurance companies will be prohibited from discriminating against people with pre-existing conditions. The pools must be in place by this summer to help adults with pre-existing conditions buy insurance coverage, as insurance coverage for these individuals is often prohibitively expensive.

“We…look forward to working together to provide people who have been denied coverage for so long, access to some much needed relief through the creation of temporary high-risk pools,” said HHS spokeswoman Jenny Backus in a statement. “Whether states create these pools or the federal government creates them for states, the pools will be paid for by 100 percent federal dollars and most importantly – uninsured people around the country will soon have access to another affordable coverage option.”

Department had assumed that some states, especially smaller states that could benefit from having their residents in a larger federal pool that spreads the risk among more people, would choose to allow the federal government to establish pools. However, a number of states that turned down the opportunity to create their own pools cited concerns that the $5 billion HHS had set aside for the pools would not be enough and the states would have to cover the rest of the cost. HHS told state officials in a recent conference call that they would not let this happen.

Alaska, Arkansas, California, Colorado, Connecticut, Illinois, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Missouri, Montana, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Vermont, Washington, West Virginia, Wisconsin and the District of Columbia have chosen to run their own programs.

HHS will run programs in Alabama, Delaware, Georgia, Hawaii, Idaho, Indiana, Louisiana, Minnesota, Mississippi, Nebraska, Nevada, North Dakota, South Carolina, Tennessee, Texas, Virginia and Wyoming.

Tax Initiatives To Promote Growth

As the economy continues showing early signs of improvement, small business owners from a range of sectors called on lawmakers this week to help sustain the recovery through tax incentives that will encourage small firms to grow and hire new workers. Testifying before the House Committee on Small Business, entrepreneurs said targeted tax relief can be an important tool for stimulating job creation.

“After the recession of 2001, micro-businesses alone generated one million jobs. Entrepreneurs will be just as important to bringing our nation out of today’s downturn—but only if they have the right tools,” said Rep. Nydia M. Velázquez (D-NY), the Chairwoman of the Small Business Committee, in prepared testimony.

An NASE survey earlier this year showed that more than three-quarters of the micro-business owners (77 percent) are not planning on hiring workers. The majority indicate that they were not hiring because they were unable to pay the salary of or offer benefits to an additional worker. Of the twenty-three percent of respondents planning to hire workers this year, only 31 percent were planning to hire full-time workers.

The hearing also explored future proposals for small business tax help. As many dislocated workers consider launching their own businesses, lawmakers discussed how modifying the tax code can reduce startup costs for new businesses. With existing businesses still struggling against tight credit conditions, much of the hearing focused on how tax relief can give firms greater flexibility in raising capital. Witnesses and Members of the Committee also examined proposals that would generate consumer demand for small businesses’ services and products.

Click here to view video of the hearing.

Congressman Seeks To Repeal 1099 Law

Congressman Dan Lungren (R-CA) introduced legislation to repeal a particularly harmful 1099 requirement on purchases of more than $600. The Small Business Paperwork Mandate Elimination Act will remove section 9006 of the new health law. Section 9006 would place an unprecedented burden on small business by requiring any business that purchases more than the allowable amount of goods or services from another business to submit a 1099 tax from to the Internal Revenue Service.

The new tax filing mandate is one of several funding streams to pay for health care and is reported to raise $17 billion. The mandate is to take effect in 2012.

The NASE supports the removal, as the threshold triggering a reporting requirement is such a low dollar amount, many daily operational activities that tend to be outsourced by small businesses will be affected such as ground and express mail services. This creates further paperwork burden for micro-business and could potentially enhance difficulties with compliance if the business has not been required to utilize the 1099 filing system previously.

"Large corporations have whole divisions to handle such transaction paperwork but for a small business, which doesn't have the manpower, this is yet another brick on their back. Everyone agrees that small businesses are job creators and the engine which drives the American economy. I am dumfounded that this Administration is doing all it can to make it more difficult for businesses to succeed rather than doing all it can to help them grow," Lungren said.

Washington Watch - April 21, 2010

NASE — Wednesday, 21 April, 2010 14:30:00 EST

Senate Examines Minority-Owned Businesses

United States Senators Mary L. Landrieu, D-La., Chair of the Senate Committee on Small Business and Entrepreneurship, and Ranking Member Olympia J. Snowe, R-Maine, recently held a hearing on the ability of minority-owned businesses to obtain capital. Officials from the Small Business Administration, as well as small-business owners spoke before the Committee.

In prepared testimony, Senator Landrieu commented on the struggle minority-owned businesses face by pointing out that they have a tough time obtaining capital, even when the economy is doing well. Ranking Member Snowe took a macro approach by mentioning how the recession has hurt minority groups most of all, noting that African-Americans and Hispanics face double-digit unemployment rates.

One witness present revealed his research, which found that minority entrepreneurs are met with additional barriers when finding and receiving capital. The study shows that minority entrepreneurs face a denial rate of 31.5 percent, as opposed to 12.3 percent for non-minority entrepreneurs. His study also suggests that lending discrimination plays a major role in the size of loans minority small business receive, with the median loan value $46,514 for minority-owned firms, compared to $108,912 for non-minority firms.

View the hearing here.

New Agency Created To Oversee Health Law

The Office of Consumer Information and Insurance Oversight has been created as part of the health reform effort to lead implementation on the law's objectives. Among the branches that the agency includes is an office to implement the exchange program in 2014, as well as a customer service office to answer consumer questions and concerns. The following offices, among others, will make up the Office of Consumer Information and Insurance Oversight:

Office of Insurance Programs - responsible for the high risk pool program and the early retiree reinsurance program
Office of Insurance Exchanges - develops and oversees the exchanges, grants individual states and the operations of the exchanges in 2014
Office of Consumer Support - keeper of the information on insurance pricing data, provider of consumer assistance, and state grants for assistance
Office of Oversight - implements, monitors and enforces new insurance rules, including medical loss ratios, performing rate reviews and issuing rate review grants to the states
Office of the Director - evaluates and leads the entire program

For information and FAQs on the new health law, visit http://healthreform.gov/.

IRS Commissioner Testifies Before House Committee

The House Committee on Small Business pressed IRS Commissioner Douglas Shulman to help entrepreneurs take advantage of new tax incentives. The Commissioner detailed outreach and education efforts designed to assist small business taxpayers.

“Helping entrepreneurs grow and create jobs has been a top priority for this Congress,” said Rep. Nydia M. Velázquez (D-NY), the Chairwoman of the House Committee on Small Business. “The IRS has an important role to play in ensuring entrepreneurs can tap into the Recovery Act and HIRE Act’s tax breaks, while also reducing the costs of complying with the tax code.”

Many small firms have complained that filing taxes requires filling out numerous, time-consuming forms. According to one study, small firms with less than $10 billion in revenues spent more than 1.7 billion hours on tax compliance, incurring out-of-pocket expenses of between $15 billion and $16 billion.

The NASE believes the complexity of the IRS tax code is particularly troublesome for the self-employed business owner and is a snare for unintentional noncompliance. We believe efforts to address the tax gap and compliance must focus on overall simplification, eliminating issues of inequity within the tax code, and enhancing taxpayer education and outreach. The majority of small business taxpayers want to comply with existing tax laws, thus making tax regulations easier to understand is the most effective and equitable way to improve compliance and to reduce the tax gap.

View video from the hearing here.

IRS Sends Out Health Credit Reminders

Starting this week, the IRS is notifying firms eligible for the tax credits available to small businesses who offer insurance. The postcards sent by the tax agency will help business owners figure out if they are eligible to take the credit and how much they might expect to receive.

Business owners who do not receive notification by mail may still be eligible to apply, says the IRS. For more information and eligibility criteria, visit the Small Business Health Care Tax Credit page on the IRS's Web site.

Washington Watch Online

Washington Watch - April 7, 2010

NASE — Wednesday, 7 April, 2010 13:00:00 EST

HHS Secretary Sebelius Explains Health Reform

Kathleen Sebelius, Secretary of the Department of Health & Human Services (HHS), recently spoke about the new health reform legislation. The Secretary began her remarks by discussing how many people understandably still have questions about the law and stressed that HHS is where Americans should go to have all of their questions on health insurance reform answered.

HHS intends on working closely with states on implementing this law. Health reform will provide many benefits to states, such as lower spending on uncompensated care, saving money because of reduced insurance paperwork and receiving more resources from the federal government to provide coverage to children.

The Secretary stated that she expects state high risk pools to be up and running in 2010. About 34 states currently have high risk pools, according to Sebelius, however the costs are so high that many people who qualify cannot afford to join. If states choose to create new high risk pools under the health reform legislation, rates in these pools will be capped at 100 percent of the market rate, and if a state does not choose to create a pool, there will be a federal pool available.

Click here to visit the NASE Health Resource Center for more details.

Countdown To April 15

Tax Day is just a few weeks away, but is filing your return still on the ‘To Do’ list? It’s okay if you have not filed yet because the NASE is offering some last minute tax tips to make the process go smoothly.

“From time to time, we have all gotten a later start on our taxes than we would like,” said Keith Hall, NASE’s National Tax Advisor. “If you file your business return with your personal return, you may be able to get an automatic 6-month extension by completing Form 4868 by April 15. But remember, an extension of time to file is not an extension to pay. If you do not send the IRS what you think you owe, you'll be stuck with late fees and interest.”

Read about Hall's tips for procrastinators by clicking here.

New Unemployment Report Released

Nonfarm payroll employment increased by 162,000 in March, and the unemployment rate held at 9.7 percent, the U.S. Bureau of Labor Statistics reported. Temporary help services and health care continued to add jobs over the month. Employment in federal government also rose, reflecting the hiring of temporary workers for Census 2010. Employment continued to decline in financial activities and in information.

In March, the number of unemployed persons was little changed at 15.0 million, and the unemployment rate remained at 9.7 percent.

Among the major worker groups, the unemployment rates for adult men (10.0 percent), adult women (8.0 percent), teenagers (26.1 percent), whites (8.8 percent), blacks (16.5 percent), and Hispanics (12.6 percent) showed little or no change in March. The jobless rate for Asians was 7.5 percent, not seasonally adjusted.

The number of long-term unemployed (those jobless for 27 weeks and over) increased by 414,000 over the month to 6.5 million. In March, 44.1 percent of unemployed persons were jobless for 27 weeks or more.

The civilian labor force participation rate (64.9 percent) and the employment-population ratio (58.6 percent) continued to edge up in March.

The number of persons working part time for economic reasons (sometimes referred to as involuntary part-time workers) increased to 9.1 million in March. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job.

Read the rest of this announcement at the Bureau of Labor and Statistics.

Small Business Community Partner Relief Act of 2010

U.S. Senate Committee on Small Business and Entrepreneurship Chair Mary L. Landrieu, D-La., and Ranking Member Olympia J. Snowe, R-Maine, along with Senator Richard Durbin, D-Ill., introduced legislation that would help alleviate the financial burdens causing small business counseling centers to close.

S.3165, the Small Business Community Partner Relief Act of 2010, enables the Small Business Administration (SBA) to temporarily waive the matching non-federal funding requirement Women’s Business Centers (WBCs) and Microloan intermediaries face to receive funding from the SBA. WBCs and Microloan intermediaries would benefit enormously from this change because funding from local governments, universities and private entities has depleted. In the last year, at least nine WBCs have closed or requested reduced funding and many Microloan intermediaries are struggling, yet seeing record demand for their services.

To read Senator Landrieu’s statement, please click here .

Washington Watch Online

Washington Watch - March 24, 2010

NASE — Wednesday, 24 March, 2010 11:00:00 EST

New Health Laws, New Political Targets

Congressional Democrats and the White House are breathing a collective sigh of relief since the health reform package has been signed into law. Now lawmakers will use the legislation as ammunition leading up to the mid-term elections this November.

GOP leaders are mounting aggressive anti-reform campaigns in the home districts of vulnerable Democrats, hoping to build upon negative reactions to and public sentiment against the bill. Conservative groups have also promised to lend man power to defeat policymakers who voted for reform. After shouting matches held at public town halls last year, along with growing support of Tea Party protests, the Republicans will work to continue to mobilization of their grassroots efforts.

Democrats, backed by the White House, have begun their own campaigns to highlight the short-term benefits of the reform bill for individuals and families. Scores of progressive groups have stepped forward to run ads thanking members of Congress who voted in favor of reform. Democrats also have the case study of George W. Bush's rollout of the Medicare Part D program, which eventually drew support among seniors.

Nuts & Bolts Of Health Care For Small Biz

Throughout the health reform process this past year, a large number of small business organizations expressed their dissatisfaction and/or their outright opposition to the final health reform bill. In a recent survey conducted by the NASE, three in five micro-business owners indicated that they did not support the final reform proposal. Their chief concerns about the legislation was that it allowed too much government intervention in health care and it would be too costly for our nation.

Despite apprehension about whether the final health reform law will lower the cost of coverage in the long-term, there are some items of benefit for the small business community. Tax credits will be offered to assist with premium costs, which will benefit many business owners. For those with fewer than 25 employees and average annual wages of less than $50,000 that purchase group health coverage for their workers, they will be eligible for a tax credit of up to 35% for tax years 2010 through 2013. Small business owners must contribute at least 50% of the total premium cost for workers to qualify. The credit will be increases in subsequent years once the new health marketplaces, known as Exchanges, are created in 2014.

Unfortunately, for the self-employed assistance with affordability of coverage has some serious limitations. The self-employed will get a tax credit if they fall within certain income requirements. Individuals making below $43,320 or a family of four with an income below $88,200 would qualify for the credit. However, while small businesses get immediate assistance, the self-employed must wait until 2014. With health care costs rising every year, the self-employed need immediate assistance with affording coverage. Additionally, the only way to access the tax credit is if a self-employed business owner drops the insurance they have and buys coverage in the newly created state-based Exchanges. This requirement makes it impossible for the self-employed to keep the coverage they have if they like AND get assistance with affordability.

On a positive note, many insurance market reforms will kick in immediately. Insurance companies will no longer be able to deny coverage to children with preexisting conditions and also, children will be permitted to remain on parents’ policies until age 26. Within six months, insurance companies are prohibited from putting lifetime limits on dollar value of coverage and rescinding coverage except in cases of fraud. In 2014, insurance companies will no longer be able to deny coverage to anyone due to their health status or a preexisting condition. A very important market reform for the self-employed who purchase coverage in the individual insurance market and are subject to underwriting.

Read more bill analysis by Kristie Arslan, NASE Executive Director on the Staff Blog.

Health Reform: Who's Saying What

Here is a list of how various news outlets are covering health reform this week:

IRS to Enforce Health Reform (CNS News)
Obama Hails Health Bill, Touts 'New Season in America' (Wall Street Journal)
Bill's Passage Starts New Campaign (POLITICO)
What Health Reform Means for Your Business? (CNN Money)
And many, many more

Washington Watch Online

Washington Watch - March 11, 2010

NASE — Thursday, 11 March, 2010 11:00:00 EST

Classification Of Independent Contractors Major Issue For Micro-Businesses

Along with the usual allocations for priorities like defense and education, the Obama Administration’s recently released FY2011 Budget also includes new regulations on independent contractors that may have a direct impact on small businesses. Almost 50 percent of the self-employed and micro-business owners were opposed to one of the proposed regulations, while opposition to two other proposed regulations was over 70 percent for both, according to a study undertaken by the NASE.

Forty-one percent of respondents also indicated that they would be less likely to use an independent contractor if they were required to comply with a contractor’s request to withhold a flat rate percentage of gross payments for federal tax purposes.

“New proposals on Capitol Hill that would require businesses to comply with voluntary withholding measures make it less appealing to hire independent contractors, simply put,” commented NASE’s Executive Director, Kristie Arslan. “It would negatively affect vast numbers of the self-employed – a severe consequence of the IRS collecting a few extra dollars per worker.”

To view full survey results, visit the NASE Research page online.

House, Senate Volley The Jobs Bill

The House recently passed the Hiring Incentives to Restore Employment Act (H.R. 2847), which has some provisions for the self-employed:

Payroll Tax Exemption – Encourages businesses to hire new employees by offering a tax break for the creation of new jobs.
Section 179 Expensing – Helps small businesses grow by offering them a tax break when they buy new equipment.

In addition, the House-passed bill includes some slight changes to the Senate legislation, including fixes to ensure that it adheres to the House PAYGO rule, as well as the PAYGO statute, and guarantees that states direct some of their transportation investments to minority-owned contractors.

The bill will now head back to the Senate for discussion. Read more about it at the Library of Congress.

1099 MISC Filing Requirements for State & Local Governments

A free webinar is being presented by the IRS and federal, state and local governments on March 30, 2010.

Self-employed tax professionals will learn about 1099 MISC filing, including who is required to file, what type of entities receive a 1099 MISC, how to secure a tax identifying number, what type of payments are subject to 1099 MISC reporting, what is Backup Withholding and how to deposit Backup Withholding.

Poll: What Do You Think About The Current Health Debate?

President Obama was unsuccessful at garnering a compromise on health reform at the televised Health Summit. Now, the President is pushing for a majority vote on health reform legislation.

Please click here to take the survey.

Washington Watch Online

Washington Watch - March 3, 2010

NASE — Wednesday, 3 March, 2010 17:00:00 EST

Eliminating The Antitrust Exemption For Health Insurers

Amid the battle of vote counts for health reform, the House passed legislation to end the antitrust exemption for insurance companies. Designed to target the ever smaller pool of insurance carriers, supporters say the resolution (H.R. 4626) would help consumers by increasing competition and driving down costs. Now, it is up to the Senate to decide the future of the bill.

Read more on the issues regarding federal and state regulation of health insurance here.

2010 Census Forms Set To Arrive Soon

Roughly 12 million addresses will receive hand-delivered census forms across the nation, mostly in rural areas where people do not receive mail at the same location as their residence. Most of nation’s 120 million households, about 90 percent of the U.S. population, should look for their 10-question forms to arrive by mail mid-March.

While the majority of areas covered by this operation are rural, the Census Bureau also is delivering forms to Gulf Coast areas affected by Hurricane Katrina to ensure everyone is included in the once-a-decade count. Census takers will deliver 2010 Census questionnaires directly to each residence in these areas, leaving a form packaged in a plastic bag at the home's main door. Residents are encouraged to fill out and mail back their census forms - using the enclosed pre-paid envelope - as soon as possible.

In 2000, about 72 percent of the population mailed back their census forms - halting a three-decade decline in the national mail participation rate. Mailing back the forms save taxpayers money, as it reduces the number of census takers that must go door-to-door to follow up with households that failed to do so. The Census Bureau saves about $85 million in operational costs for every percentage point increase in the national mail response rate.

Starting March 22, visitors to the 2010 Census Web site will be able to track how well their communities are participating in the census on a daily basis. All census responses are confidential. Answers are protected by law and cannot be shared with anyone. The Census Bureau takes extreme measures to protect the identity of individuals and businesses. By law, the Census Bureau cannot share respondents’ individually identifiable answers with anyone, including tribal housing authorities, other federal agencies and law enforcement entities.

For more information, visit Census.gov.

Economy And Small Business Trends

Small businesses remained skeptical, but hopeful about the reported rise in economic factors. The SBA Office of Advocacy is releasing its fourth quarter of 2009 indicators, which includes how micro-businesses fare.

According to the report, the U.S. economy rebounded in the fourth quarter; real GDP grew by an annualized 5.7 percent. Much of this growth stemmed from inventory replacement. Other contributing factors were growth in real personal consumption (2 percent) and real exports (18 percent) and slowing growth of imports (11 percent, all at annualized rates). Both the Federal Reserve’s industrial production index and the Institute for Supply Management’s manufacturing composite index reflected strong growth during the quarter.

For more details, view the indicators online.

Washington Watch Online

Washington Watch - February 11, 2010

NASE — Thursday, 11 February, 2010 12:00:00 EST

IRS Continues Random Business Audits

Since last November, the Internal Revenue Service (IRS) has been reviewing the tax records of nearly 6,000 randomly chosen businesses in order to help close the tax gap, or the amount the IRS is owed versus the amount it collects each year.

Generally, business owners undergoing an audit will be asked to provide documentation from three years prior. The focus will be in four areas, including worker classification, fringe benefits, reimbursed expenses and compensation of the business owner.

"The first thing I tell business owners is not to panic," says NASE National Tax Advisor, Keith Hall. "As long as you have adequate records and are organized, then the audit process is relatively simple. You may even get an additional refund."

The NASE believes that most self-employed business owners meet their tax obligations fully and in a timely manner. For help organizing your taxes, visit the NASE's Tax Resource Center or ask our TaxTalk CPAs a question.

Update: Small Business And Jobs Legislation

In his weekly address, President Barack Obama focused on new initiatives intended to help struggling small businesses. These proposals include using $30 billion in TARP funds to create a new Small Business Lending Fund to provide capital to community banks to increase lending to small businesses, offering a new tax credit for over one million small businesses that hire new workers or raise wages, and providing targeted support for the most innovative small businesses with the potential to export new goods and products.

Watch video of the president's address, which focused on small business the week.

Obama, GOP Leaders Spar On Health Bill Contents

Congress is set to pick up the health care bill talks later this month, and both GOP leaders and the White House are staking their intentions for the legislation. President Barack Obama, hoping to quell fears on the bills' direction, met with Republican and Democrat leaders early this week.

Shortly thereafter, House Minority Leader John A. Boehner (R-Ohio) sent out an e-mail alert headlined, “White House Health Care Summit: Honest, Bipartisan Conversation or Set-Up for Another Democratic Backroom Deal?”

President Obama pushed back by saying, "Bipartisanship can’t be that I agree to all of the things that they believe in or want, and they agree to none of the things I believe in or want, and that’s the price of bipartisanship, right? But that’s sometimes the way it gets presented."

The president has called for a bipartisan meeting on the health care bills when Congress reconvenes following the President's Day recess. The health care summit will take place Feb. 25th.

Read the alert sent out by Boehner here. For more details on the White House responses on health care, click here.

Poll: Are You An Independent Contractor Or Do You Hire Them?

The Obama Administration recently released their FY2011 Budget. Included in the budget is a proposal to change regulations relating to the use of independent contractors.

Please click here to take the survey and let us know what you think.

Washington Watch Online

Washington Watch - December 10, 2009

NASE — Thursday, 10 December, 2009 14:00:00 EST

Micro-Businesses Attend Kickoff Of "White House To Main Street" Series

Micro-business owners in Allentown, Pennsylvania recently got a visit from President Barack Obama for the opening of the White House To Main Street tour. The Allentown stop was the first in a series of events across the nation focusing on job creation.

“Now, it’s typical that it takes time for job growth to catch up with economic growth. And it’s typical that it takes a little more time to come out of a recession when it comes to hiring. But Americans who’ve been desperately looking for work for months -- some of them maybe for a year or longer -- they can’t wait. And we won’t wait. We need to do everything we can, right now, to get our businesses hiring again so that our friends and our neighbors can go back to work,” said President Obama.

Dale Schaffer of Bethlehem, Pa. is the co-owner of Elysian Fields Specialty Florals. He was part of a group of NASE members that were invited by the Obama Administration to attend the event at Lehigh Carbon Community College in Allentown:

“As a small business owner, I would have liked to learn more about opportunities for grants and small business loans. The bank situation is very discouraging when you rent or lease a property for your business and have very little credit to show when approaching a lending institution for any financial backing. I would love to grow our business and have the opportunity to employ more people, but the current financial stress prohibits that at this time. Our goal is to maintain the current number of employees we have while also looking to the future with hope of growth and expansion,” commented Mr. Schaffer.

The self-employed represent approximately 78% of all small business in the United States and have consistently grown each year despite the ailing economy. The NASE asserts that any effort by the Administration and Congress to increase job creation needs to have a substantial focus on self-employment as a viable career option and the self-employed as job creators in our nation.

According to a November 2008 NASE online poll, 71% of micro-business owners reported that the slow economy was having a moderate to significant impact on their business. Click here for full survey results.

House Passes Bill To Hold Estate Tax At 2009 Levels

The House recently passed a bill (H.R. 4154) that would fix the estate tax at current levels. The measure, which passed 225-200, would make permanent this year’s $3.5 million-per-person exemption and 45 percent tax rate on estates.

While the legislation does not allow for the exemption to be indexed for inflation, it does include the text of a bill (H.R. 2920) that would legally require pay-as-you-go budget rules.

If Congress does not pass new legislation, the estate tax will vanish for one year (starting January 1, 2010). The estate tax will then return to its 2001 schedule. The 2001 schedule includes a higher tax rate and lower exemption amount than schedules of recent years.

Most lawmakers oppose a one-year repeal, and supporters of maintaining an estate tax in some form note that it would be very difficult to restore the tax once it was eliminated.

All Republicans and 26 Democrats opposed the House bill, arguing that it did not go far enough to scale back the tax.

Senate Majority Leader Harry Reid (D-Nev.) has discussed the bill with House Speaker Nancy Pelosi (D-Calif.) and House Majority Leader Steny Hoyer (D-Md.). However, Sen. Reid has indicated that it may be difficult to find time to discuss a separate bill because of the current health care debate in the Senate, making it more likely that a temporary fix will be included in a year-end bill.

NASE National Tax Advisor, CPA To Congress: Support Extending Tax Incentives For Small Biz

When appearing before Congress, NASE National Tax Advisor and Certified Public Accountant, Keith Hall, has one piece of advice for lawmakers – in order to continue growing and creating jobs, small businesses need to be able to count on a number of tax incentives. Mr. Hall was invited to disclose the needs of the self-employed business owner at a recent roundtable on expiring tax provisions, hosted by the Senate Committee on Small Business & Entrepreneurship.

The National Association for the Self-Employed (NASE) is strongly in support of extending tax incentives that are currently scheduled to expire. In particular, the NASE supports extending the provisions for Alternative Minimum Tax increased exemption amounts, bonus depreciation options, section 179 limits, the sales tax deduction option, the first time home buyer’s credit, and 15 year cost recovery for certain qualified leasehold improvements and five year recovery for farming business machinery and equipment.

“Many of those provisions were enacted over time by Congress to stimulate business and job growth and have been successful particularly for small businesses across the country,” commented Mr. Hall. “Congress certainly could not have anticipated the economic crisis that we all are currently facing, however, now is not the time to end key tax incentives that have contributed to the creation of new jobs.”

Hall recommended that Senate lawmakers not only approve temporary tax incentives for 2010, but also make them permanent, as temporary tax provisions can make for difficult tax planning for the self-employed. He also suggested that Congress pass legislation that would offer the self-employed the option of a standard home office deduction, as well as the opportunity to write off their health costs as a business expense.

The Joint Committee on Taxation has provided a list of over 25 major tax incentives that are scheduled to expire in 2009. There are also over 85 temporary tax incentives that have been extended from year to year that are scheduled to expire or “sunset” by the end of next year.

Small Biz Health Care Roundup

Here's a list of other top headlines related to the self-employed and the health care debate. If you see something we forgot to include, drop us a line at media at nase dot org.

Senate Continues Health Reform Debate, Dems Emphasize Patient Protections (RTT News) - "Frustrated with insurance industry practices of dropping or denying coverage for those with expensive diseases, Sen. Debbie Stabenow, D-Mich., said the Democrats' reform bill would put in place important protections."
Profiles: How Could Health Reform Affect You? (PBS Newshour) - "A young woman without health insurance. A small business owner. A woman just diagnosed with breast cancer. The PBS NewsHour talks to health policy analysts about how health care reform could affect these individuals and other real people."
CBO: Senate Bill Won't Change Small Biz Premiums (BizJournals.com) - "Premiums for individuals who buy insurance through the exchanges created by the legislation would be 10 percent to 13 percent higher on average than they would be in 2016 under current law, CBO found. That's because insurance policies in the exchanges would pick up a larger share of an individual's health care costs and cover services, such as prescription drugs, that often are not covered by current individual policies."
Obama Says Health Care Reform Means Jobs (AP) - "Obama told a town hall gathering in Allentown, Pa., on Friday that health care reform is "part and parcel" of what has to be done to help the economy."
Harry Reid: Democrats Reach 'Broad Agreement' (Politico) - "Democrats on Tuesday night took a major step forward on a plan by agreeing to ask congressional scorekeepers to give them cost estimates on a possible compromise that would break the impasse over health reform in the Senate."

"Frustrated with insurance industry practices of dropping or denying coverage for those with expensive diseases, Sen. Debbie Stabenow, D-Mich., said the Democrats' reform bill would put in place important protections."

Washington Watch Online
Visit NASE Advocacy to view archived editions of Washington Watch. While you’re there, read the latest updates from the Washington, D.C. office, write your Congressperson, and find out how you can join the fight for micro-business.

Washington Watch - October 21, 2009

NASE — Wednesday, 21 October, 2009 15:00:00 EST

Quick Look: Senate Tries To Converge Health Bills

Senate Democrats are working hard this week to merge two health care reform efforts into one cohesive bill. Finance Committee Chairman Max Baucus (D-Mont.), the main architect of a measure that his panel approved mid-October, will work to find common ground with proponents of the more liberal version of the legislation authored by the Health, Education, Labor and Pensions (HELP) Committee this summer.

Among the differences between the measures, the HELP bill includes an employer mandate for most businesses and would create a “public option” administered by the government. The Finance bill does not call for either of these provisions.

Some Senate Democrats have spoken publicly about their disapproval of the Baucus legislation's main revenue raiser, which is an excise tax on high-premium insurance plans. The tax would affect individuals with premiums greater than $8,000 a year and families with premiums of more than $21,000 annually.

Are Recovery Measures Working For Small Firms?

In order to answer the question on what is and is not helping firms succeed, the Senate Committee on Small Business and Entrepreneurship recently held a hearing to talk with federal agencies on feedback gathered from small businesses on the subject. In particular, the committee focused upon how to continue to improve access to capital and contracting opportunities for small firms.

The Committee discussed provisions enacted since the Recovery Act was signed into law, including an increase in small business lending, with weekly loan volume increasing by more than 60 percent nationwide. Small businesses have created or retained about 325,000 jobs with the help of Recovery Act provisions.

Both Committee Chair Mary Landrieu (D-La.) and Ranking Member Olympia Snowe (R-Maine) agreed there is more work to be done.

"I urge the Administration to implement a meaningful women’s contracting program like Congress directed it to nearly a decade ago," said Sen. Snowe. "This would help the Federal government to meet – and exceed – its contracting requirements for women-owned small businesses. And we must also pass legislation I introduced to increase the maximum level on 7(a) and 504 loans to $5 million so that more small businesses are able to access capital."

Ranking Member Snowe introduced S. 1615, The Next Step for Main Street Credit Availability Act of 2009, this fall to help boost small business lending. The legislation would increase the maximum level on 7(a) and most 504 loans to $5 million, and microloans from $35,000 to $50,000.

The Committee also discussed a Recovery Act provision that exempted the National Institutes of Health (NIH) from participating in the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.

“This provision cheated small businesses out of as much as $230 million in work, and it directly counters the goals of the Recovery Act to create high-paying jobs, spur innovation and boost America’s competitiveness,” Sen. Landrieu said. “The SBIR and STTR programs have a proven track record in these areas.”

For more information, including complete witness testimony and video of the hearing, click here.

SBA Launches Online Training Course For Women

Women who own small businesses will be able to use a new online U.S. Small Business Administration training course to learn how to identify and take advantage of federal contracting opportunities. The new training course, Winning Federal Contracts: A Guide for Women Entrepreneurs, is part of an ongoing government-wide initiative to promote opportunities for women-owned businesses in the area of government contracting.

This free online tutorial is a practical and easy-to-use guide that walks a woman-owned small business through the contracting process. The SBA is committed to ensuring that women-owned businesses receive at least 5 percent of federal contracts and believes better training opportunities are central to meeting this government-wide goal.

“Federal contracts can provide unique opportunities for women entrepreneurs and small business owners to grow their businesses and create jobs, particularly during these tough economic times,” Administrator Karen Mills said. “It’s also a win for federal agencies, by contracting with women-owned small businesses; they are working with some of the most innovative and dynamic companies in the country.”

The SBA’s Office of Women’s Business Ownership oversees a national network of more than 100 Women’s Business Centers (WBCs) that provide education and training to help women start and grow small businesses. In addition, the SBA has 68 district offices and other resource partners throughout the country available to train and counsel women small business owners and entrepreneurs seeking government contracts.

“This online training course makes critical information and training available to an even wider array of women entrepreneurs and small business owners,” said Ana Harvey, assistant administrator for SBA’s Office of Women’s Business Ownership. “SBA wants to help ensure they have the tools and resources they need to compete for and win federal contracts.”

The Winning Federal Contracts course is designed to help women entrepreneurs learn about the federal procurement process and to prepare them to compete for contracting opportunities. The self-paced guide uses audio and script to provide information about contract rules, how to sell to the government and where to find contracts.

The Winning Federal Contracts course can be found here.

Small Biz Health Care Roundup

Here's a sampling of this week's top health care reform articles. If you find an article or blog that you think should be considered, drop us a line at media@nase.org.

Sen. Mary Landrieu (D-La.) - Health Costs Are Crushing Small Businesses (WSJ Opinion)
Are Obama’s Small-Business Lending Proposals Also About Health Care? (NY Times - You're The Boss blog)
White House Report: Small Business Employees Risk Losing Coverage (HealthReform.gov)
MORE NEWS!! BusinessWeek Health Reform Roundup (New Entrepreneur blog)

Lawmakers and media outlets across the country rely on and regularly cite the NASE as a source of small and micro-business expertise. Help the NASE make sure the micro-business perspective is heard by taking this month’s poll.

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Washington Watch - October 14, 2009

NASE — Wednesday, 14 October, 2009 13:00:00 EST

Senate Introduces Home Office Deduction Bill

The majority of micro-businesses are operated out of a home office, yet the home office deduction has become wrapped in enough regulatory red tape to turn those business owners away from the tax benefit. New legislation could help home-based businesses save nearly $1,500 on their taxes next year. The National Association for the Self-Employed (NASE) is proud to support the Home Office Tax Deduction Simplification Act (S. 1754), a bill that was introduced by Sen. Barbara Boxer (D-Calif.) this week. Sens. Jeff Merkley (D-Ore.), Joe Lieberman (IND-Conn.) and Evan Bayh (D-Ind.) also lent their support to this bill.

“We are proud to see that both the House and Senate have taken a stand on this important issue,” said Kristie Arslan, executive director of the NASE legislative office. “Hopefully, there will be movement on this bill to assist our nation’s home-based businesses during these difficult economic times.”

Business owners often report that the qualification criteria for the deduction is too difficult to navigate, while others fear that taking the deduction will trigger an audit. The legislation would allow business owners the option of a $1,500 standard deduction, but would not disqualify taxpayers currently eligible for the home office deduction from continuing to itemize their expenses. Rather, it offers a taxpayer-friendly way to take the deduction. If passed by Congress, the bill would significantly minimize the time and paperwork needed for tax preparation for these businesses. The bill would also require that the amount of the standard deduction be indexed for inflation.

“Small businesses are critical to the American economy, and this legislation will help them thrive,” said Sen. Boxer, “This bill cuts the red tape that prevents many small businesses from claiming this tax deduction. By making it easier to claim the deduction, more small businesses can invest these funds to expand and create much-needed jobs.”

In September, Rep. Kurt Schrader (D-Ore.) introduced similar legislation in the House of Representatives. For more information, see “Legislators Take On Home Office Deduction.”

For statistics on entrepreneurs and the home office deduction, view the results of this 2008 NASE poll.

President Obama Pushes Consumer Protection

President Barack Obama spoke at the White House recently to continue to bolster the financial and regulatory reform of Wall Street that he proposed earlier this year. In particular, the president spoke about the Consumer Financial Protection Agency:

"This agency will have the power to make certain that consumers get information that is clear and concise -- in plain language -- so they can compare products and know exactly what they're getting themselves into. It will ensure that banks and other firms can't hide behind these ridiculously confusing contracts -- pages and pages of fine print that nobody can figure out. It will have the ability to enforce and build on the credit card reforms we passed earlier this year, so that consumers aren't hit with unfair rate hikes and penalties, or hidden charges. It will require brokers to look out for the interests of families if they give advice about mortgages. And it will ensure transparency and fair dealing for other financial products, like bank overdraft services and payday loans."

View the president's full remarks here .

Legislative Alert: SBA Capital Access Programs

With concerns that small businesses are still having trouble getting the funds that they need, the House Committee on Small Business, Subcommittee on Tax and Finance met to discuss possible legislation to aid the situation. Those bills included the following measures regarding Small Business Administration (SBA) programs:

H.R. 3723: “The Small Business Credit Expansion and Loan Markets Stabilization Act of 2009” (Rep. Halvorson D-Ill.)
H.R. 3739: “The Job Creation and Economic Development Through CDC Modernization Act of 2009” (Rep. Buchanan R-Fla.)
H.R. 3737: “Small Business Microlending Expansion Act of 2009” (Rep. Ellsworth D-Ind.)
H.R. 3740: “The Small Business Investment Company Modernization and Improvement Act of 2009” (Rep. Luetkemeyer R-Mo.)
H.R. 3722: “The Enhanced New Markets and Expanded Investment in Renewable Energy for Small Manufacturers Act of 2009” (Rep. Kirkpatrick D-Ariz.)
H.R. 3014: “The Small Business Health Information Technology Financing Act” (Rep. Dahlkemper D-Pa.)
H.R. 3738: “The Small Business Early Stage Investment Act of 2009” (Rep. Nye D-Va.)
H.R. 3743: “The Small Business Disaster Readiness and Reform Act of 2009” (Rep. Griffith D-Ala.)

Find details on the legislation at the Library of Congress online .

Small Biz Health Care Roundup

Here's a sampling of this week's top health care reform articles. If you find an article or blog that you think should be considered, drop us a line at media@nase.org.

How Far Should Companies Go To Help Workers Be Healthy? (WSJ Health Blog)
Health Insurers' 11th-Hour Outburst (Nat'l Journal Health Care)
When Half A Mandate Is No Mandate At All: More On Play-Or-Pay In The Senate (NY Times - You're The Boss)
Health Reform Cost? Nobody Really Knows (CNN Money)
The Insurance Exchange In Health Reform: Essential Characteristics (Health Affairs)

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Washington Watch - October 7, 2009

NASE — Wednesday, 7 October, 2009 12:00:00 EST

Allowing Tax Incentives To Expire Will Hurt Small Firms

Although originally enacted to prevent those Americans with the most resources at their disposal from avoiding taxes, the Alternative Minimum Tax (AMT) did not take into account the effects of inflation, the growth of earnings and expenses. Congress has adjusted the exemption amount over time to keep up with inflation, but that adjustment is now scheduled to end, which would result in an increased tax burden for many small business owners and families.

The NASE’s National Tax Advisor, Keith Hall, testified before the House Committee on Small Business last week about how allowing the AMT and other tax incentives to expire would cause a direct and unintended tax increase on the small business sector that many are relying on to continue the economic recovery. Hall suggested that at a minimum, the exemption amounts should not be allowed to decrease, but should be increased annually based on an inflation index in order to continue the recovery.

“Allowing the increase in the exemption amount to ‘sunset’ would directly increase the tax burden for many Americans past their ‘fair share’ simply because they may live in a state with a higher than average state income tax. Others would pay more than their fair share simply because they have a larger than average family. Others would pay more than their fair share simply because they have higher mortgage interest due to a second lien necessary to fund their business or a child’s education. Clearly, none of these scenarios was the intent of the AMT from so many years ago,” noted Hall.

The NASE supports the extension of expiring tax incentives including the AMT exemption, accelerated depreciation, sales tax deductions, first time home owner buyer credit and others. The rationale for supporting the extension of tax incentives is to further assist in our nation's economic recovery. The NASE believes in the long term impact that small business will have on the overall economy. Promoting investment, encouraging new job development and keeping the playing field level for all taxpayers is essential to long term recovery.

Read the full text of Keith Hall's testimony here .
Watch highlights from Keith Hall's testimony on YouTube .

Track the progress of current legislation that would help micro-businesses and the self-employed by visiting advocacy.NASE.org.

New Web Portal To Allow Docs Easier Access To Health Records

Health plans today launched a landmark initiative to make delivering and getting health care easier for patients and their physicians by reducing the time, effort, and expense for the “paperwork” required for each patient office visit. The initiative, which will simplify information flow between health plans and doctors’ offices, and later between health plans and hospitals, is comparable to what ATMs did for banks and consumers.

Beginning in early November, America’s Health Insurance Plans (AHIP) and the Blue Cross and Blue Shield Association (BCBSA) will sponsor regional and statewide initiatives to assess how best to offer physicians access to multiple insurers through the same information channel (e.g., a web portal) in a given region of the country for the purpose of conducting key office tasks. Savings are estimated in the hundreds of billions of dollars as the entire health care system achieves efficiencies through similar moves to automation and consistent business practices.

This landmark initiative addresses the need for one-stop service in electronic transactions that physicians have advocated for strongly, and is a requirement to achieve the level of savings that is ultimately possibly. It replaces a cumbersome system in which physician office staff spend considerable time at considerable expense accessing multiple channels to get the information needed to complete basic requirements for confirming eligibility, billing, and referrals. The ultimate goal is to develop regional services that span the entire country.

The initiative announced today in Ohio already has strong support from local health plans representing greater than 91% of state residents with private health insurance, and major statewide physician organizations.

It offers opportunities to simplify the work associated with patient visits and achieve savings, including providing physicians with information in “real-time” that:

Allows office staff to quickly determine key eligibility and benefit information (e.g., co-pays, co-insurance, and deductibles, and differences in coverage for services provided in- versus out-of-network), minimizing time and expense needed for such purposes;
Gives physicians access to current and accurate information on the status of claims submitted by physician offices for payment by insurers. This will minimize the need for follow up steps by office staff or submission of duplicate claims that delay rather than expedite payment in most systems;
Tests real-time referrals and timely pre-authorization of services; and
Provides for the online submission of healthcare claims.

For more information on the multi-payer portal project, please visit this Web site.

IRS Reports 1.4 Million Families Use First-Time Homebuyer Tax Credit

With the deadline quickly approaching, the Internal Revenue Service today reminded potential homebuyers they must complete their first-time home purchases before Dec. 1 to qualify for the special first-time homebuyer credit. The American Recovery and Reinvestment Act extended the tax credit, which has provided a tax benefit to more than 1.4 million taxpayers so far.

The credit of up to $8,000 is generally available to homebuyers with qualifying income levels who have never owned a home or have not owned one in the past three years.

Because the credit is only in effect for a limited time, those considering buying a home must act soon to qualify for the credit. Under the Recovery Act, an eligible home purchase must be completed before Dec. 1, 2009. This means that the last day to close on a home is Nov. 30.

The credit cannot be claimed until after the purchase is completed. For purchases made this year before Dec. 1, taxpayers have the option of claiming the credit on their 2008 returns or waiting until next year and claiming it on their 2009 returns.

For details on claiming the credit, see Form 5405, First-Time Homebuyer Credit.

Small Biz Health Care Roundup

Here's a sampling of this week's top health care reform articles. If you find an article or blog that you think should be considered, drop us a line at media@nase.org.

Can Slumping Support For Health Care Reform Be Turned Around? (Health Affairs)
Health-Care Bill Fuels Debate On Public Access To Legislation (Washington Post)
Now, It's About A Strong, Robust, Real Public Option (America Blog)
Adding Health Advice To Online Medical Records (NY Times)
What The Finance Committee Bill Means For Doctors (WSJ - Health Blog)

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Washington Watch - September 23, 2009

NASE — Wednesday, 23 September, 2009 12:00:00 EST

Senate Analyzes New Health Care Overhaul Bill

Senate Finance Committee Chairman Max Baucus, D-Mont., last week unveiled his plan to overhaul the health care system. Since its release, many lawmakers have spoken out that the tax subsidies for those who are required to buy coverage are not generous enough to make coverage affordable. The NASE is very disappointed to see that no amendments have been offered to help ease the health costs faced by millions of self-employed business owners.

"Once again, Congress has proven that it's happy to pay lip service to the self-employed," said NASE Executive Director Kristie Arslan. "However, when it's time for action, the nation's smallest businesses are denied the assistance they desperately need to afford health coverage."

After meetings with concerned Democrats and Republicans, Sen. Baucus released a list of changes he will be making to the existing bill. Those changes include:

Reducing the percentage of income that would have to be spent on employer-sponsored insurance in order for it to be deemed “unaffordable,” thus making individuals eligible to buy coverage from an insurance exchange and receive subsidies for the premiums. The threshold may be reduced by 1 percentage point from the current proposed 12 percent of income.
Reducing the penalty for not having insurance, maybe by as much as half. The current proposed annual penalties, depending on income, range from $750 to $950 for individuals and from $1,500 to $3,800 for families.
Increasing the minimum annual insurance premium that would be subject to the proposed excise tax on expensive health plans (currently $21,000 for families, $8,000 for individuals).

As it stands, the bill is estimated to cost $774 billion over the next 10 years, according to the Congressional Budget Office (CBO). The agency predicts that that cost will be offset by reductions in Medicare spending. A tax on high-deductible insurance plans and additional fees for insurers, drug and medical device manufacturers, and clinical laboratories will round out the revenue raisers in the bill.

Click here to see a current list of amendments.

Frequently Asked Questions On Small Businesses

Last year, there were 29.6 million small businesses in the United States, according to the Office of Advocacy's FAQ on small businesses. As the research arm of the Small Business Administration, the Office of Advocacy periodically updates their popular informational sheet as new data on small firms becomes available. The FAQ answers such questions as:

What is a small business?
How important are small businesses to the U.S. economy?
How many businesses open and close each year?
What is the survival rate for new firms?
What research exists on the cost and availability of health insurance?

Frequently Asked Questions is located at: http://www.sba.gov/advo/stats/sbfaq.pdf

Employee Vs. Independent Contractor – Ten Tips for Business Owners From The IRS

If you are a small business owner, whether you hire people as independent contractors or as employees will impact how much taxes you pay and the amount of taxes you withhold from their paychecks. Additionally, it will affect how much additional cost your business must bear, what documents and information they must provide to you, and what tax documents you must give to them.

Here are the top ten things every business owner should know about hiring people as independent contractors versus hiring them as employees.

Three characteristics are used by the IRS to determine the relationship between businesses and workers: Behavioral Control, Financial Control, and the Type of Relationship.
Behavioral Control covers facts that show whether the business has a right to direct or control how the work is done through instructions, training or other means.
Financial Control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker's job.
The Type of Relationship factor relates to how the workers and the business owner perceive their relationship.
If you have the right to control or direct not only what is to be done, but also how it is to be done, then your workers are most likely employees.
If you can direct or control only the result of the work done -- and not the means and methods of accomplishing the result -- then your workers are probably independent contractors.
Employers who misclassify workers as independent contractors can end up with substantial tax bills. Additionally, they can face penalties for failing to pay employment taxes and for failing to file required tax forms.
Workers can avoid higher tax bills and lost benefits if they know their proper status.
Both employers and workers can ask the IRS to make a determination on whether a specific individual is an independent contractor or an employee by filing a Form SS-8 – Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding – with the IRS.
You can learn more about the critical determination of a worker’s status as an Independent Contractor or Employee at IRS.gov by selecting the Small Business link. Additional resources include IRS Publication 15-A, Employer's Supplemental Tax Guide; Publication 1779, Independent Contractor or Employee; and Publication 1976, Do You Qualify for Relief under Section 530? These publications and Form SS-8 are available on the IRS Web site or by calling the IRS at 800-829-3676 (800-TAX-FORM).

For more information, visit IRS.gov.

Small Biz Health Care Roundup

Here's a sampling of this week's top health care reform articles. If you find an article or blog that you think should be considered, drop us a line at media@nase.org.

Health Insurer Tax Not What It Seems (CNN Money)
Cortese On Reform: The Hard Part Is The Delivery System (Health Affairs Blog)
Changes To The Baucus Health Care Bill That Impact Small Employers (The New Entrepreneur blog - BusinessWeek)
Senators Stake Out Positions On The Baucus Plan (Prescriptions blog - NY Times)
Health Insurance Mandate Includes 'Tax' Despite Obama Denial (Fox News)
Baucus Health Bill: 564 Proposed Amendments, And Counting (Health Blog - WSJ)

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Washington Watch - September 16, 2009

NASE — Wednesday, 16 September, 2009 15:00:00 EST

NASE, Self-Employed Comment On Pres. Obama's Health Care Speech

President Barack Obama delivered a prescription for health care that left some in the self-employed community wondering just where they fit in the plan. While the speech elaborated on current proposals the President wants in a final reform package, he did not address a number of key concerns for micro-business owners (those with 10 or fewer employees).

“While I am pleased that the President has decided to take a more active role on health reform and referee the players on Capitol Hill, ultimately we all know that the devil is in the details,” remarked Kristie Arslan, executive director of the NASE. “If the President is going to hold fast to the current proposals -- some good, some bad -- on the table and not offer any new ideas, then we need to know his opinion on the details and how it differs from that of Congress.”

The NASE supports a few specific reform proposals that will provide enormous relief for self-employed business owners. After Pres. Obama’s speech, the self-employed weighed in with their reactions:

“My concerns remain the same: Is there a possibility that my premiums may actually increase because I can no longer purchase the kind of coverage I currently have,” wondered graphic designer Alyssa Turk of Grand Rapids, Michigan. “Regardless of how you cut it, the government will be much more involved in the health care choices of those who purchase health care privately. This is what I am opposed to. I am happy to be responsible and have health insurance; I simply don't trust the government to determine my plan.”

“As small-business owners, I see most of us just taking the 8% penalty for not insuring our employees and letting our employees just use the government option,” said Chris Humphrey, a photographer from Tulsa, Oklahoma. “It's sad but true. I can't afford a massive hike in health care rates and I know most other small businesses can't either. Let the free market work and let the insurance companies compete across state lines.”

Read Kristie Arslan’s entire commentary on the NASE Staff Blog.

Read the full text of President Obama’s address to a joint session of Congress.

See the "Small Biz Health Care Roundup," below, for updates on health care efforts post-speech.

Financial System Overhaul Still Needed, Obama Says

With the upcoming anniversary of the collapse of Lehman Brothers Holdings Inc., President Obama traveled to New York to address Wall Street about his proposed financial sector overhaul. Lehman Brothers filed for bankruptcy on Sept. 15, 2008, sparking a market crash and, subsequently, a $700 billion taxpayer bailout of the crumbling financial industry.

"We will not go back to the days of reckless behavior and unchecked excess that was at the heart of this crisis, where too many were motivated only by the appetite for quick kills and bloated bonuses," the president said. "Those on Wall Street cannot resume taking risks without regard for consequences, and expect that next time, American taxpayers will be there to break their fall."

Pres. Obama laid out three main principles of his new oversight system, which intends to increase protection of consumers and financial institutions:

The Consumer Financial Protection Agency will be formed to enforce guidelines and police the nation's financial sector.
The Agency will work to close loopholes that allowed the financial crisis to occur. This includes gaps that undercut the authority of regulators to take action and overlaps in these systems that allowed unaccountability for action. President Obama remarked that, while individual regulators were responsible for individual financial firms, there was no one to protect and oversee the larger system.
A continued worldwide response that would "promote recovery and... restore prosperity among both the world's largest economies and the world's fastest growing economies."

Click here to read the president's entire address, including more information on the proposed plan.

Small Businesses Should Prepare Now For Flu Season, Hearing Finds

The The House Committee on Small Business recently held a hearing to explore the potential impact of the H1N1 influenza on small businesses and investigate the resources available to small firms.

Representatives from various government agencies as well as small business owners shared recommendations and resources for helping small businesses deal with the possibility of a pandemic.

“To maintain critical operations, small businesses should be prepared to change business practices as needed during an outbreak,” Dr. Anne Schuchat testified on behalf of the Department of Health and Human Services. “For instance, small businesses should prepare to identify alternative suppliers, prioritize customers, or temporarily suspend some operations as needed.”

Government agency representatives recommended that small businesses should:

Implement flexible sick leave policies allowing workers to stay home to care for sick family members or children and encouraging sick workers to stay home, keeping in mind that workers will likely be absent for 3 to 5 days with the flu and should not return to work until free of fever or symptoms of fever for at least 24 hours without the use of fever-reducing medication;
Take action to stop the spread of germs by encouraging frequent hand washing, the covering of coughs and sneezes with a tissue or sleeve, frequently cleaning commonly touched surfaces, and considering spacing workers farther apart or work-from-home strategies;
And prepare for increased employee absences by cross-training employees and being prepared to change business practices if needed to maintain critical operations of the business.

Small Biz Health Care Roundup

Here's a sampling of this week's top health care reform articles in relation to small businesses:

Concerns On All Sides Plague Senate Finance’s Health Bill (Wall Street Journal's Health blog)
Bipartisan Senate Health Plan May Leave Dems Cold (Fox News)
Commentary: Don't Cut Our (Public) Health Care (CNN Politics)
Updated: Baucus’s Bipartisan Bid Is Set Back, But Not Necessarily Over (NY Times Prescriptions blog)
Family Health Costs Jump 5% (CNN Money)
Grading The President’s Health Care Speech (Health Affairs Blog)
President Takes On Role As Chief Pitchman For Health Reform- Buy NOW! [Commentary] (NASE Staff Blog)
Mixed Messages Bolster GOP's Case (Politico)
Reform Plans Leave Health Savings Accounts In Limbo (CNN Money)
The Obama/Bush Medical Malpractice Solution (National Journal Expert Blogs - Health Care)
CBO: HELP Bill's Public Plan Not Much Help on Costs (The Health Care Blog)

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Washington Watch - September 9, 2009

NASE — Wednesday, 9 September, 2009 13:00:00 EST

President Obama To Lay Out Specifics On Health Care Plan

President Barack Obama will address Congress tonight to make his case for health care reform. In what has been deemed by many policymakers as his most important speech to date, the president will be providing specific details as to what he wants in a reform bill.

During a speech Monday in Ohio, he renewed his support for a public plan option funded and operated by the government by remarking, "I continue to believe that a public option within that basket of insurance choices will help improve quality and bring down costs."

Many elderly adults are skeptical of such a plan and concerned about how it might affect Medicare. The proposed public option would be similar to Medicare and those covered would pay less than if they were to obtain coverage privately.

In addition to winning over the public, President Obama must also rally Congress behind his plan, specifically those who will vote against a bill not containing a public option, as well as those who believe it will be too expensive to implement and maintain.

Political advisors say the president will need to explain his approach to tackling three key areas in order to gain support. Those include the availability of quality, affordable coverage for the uninsured, placing a significant emphasis on wellness efforts in order to help control long-term health costs and slowing down the exponential rate at which health costs have risen in past decades.

Visit WhiteHouse.gov this evening for more information.

Legislative Alert!

Congress returned to Capitol Hill this week after a month-long recess. In addition to health care reform legislation, here are a few other small business issues on the radar:

Increased Information Reporting on Forms 1099 - Under current tax law, a business taxpayer making payments to a service provider of $600 or more for services is required to report those expenses to the IRS. Though President Obama asked that the measure be repealed, lawmakers have viewed it as a revenue raiser for the health care reform effort. A recent House bill (H.R. 3408) included a provision that would require businesses to report all transactions with service-providing vendors. Unfortunately, Senate Finance Chairman Sen. Max Baucus (D-Mont.) introduced a proposal this week that also includes a provision to require businesses to report all transactions.
Independent Contractor Classification - Small businesses have long been confused by vague employee/independent contractor classification methods, since employment and income tax, as well as employee benefits are affected. A new law would require that businesses obtain written determination from the Department of Treasury that the individual (or individuals holding a substantially similar position) was or was not considered an employee before the business can qualify for safe harbor laws. Should an individual be deemed an employee through the examination, the IRS must report that fact to the Department of Labor.
SBA Office Of Advocacy Leadership - President Obama nominated Winslow Sargeant as the next Office of Advocacy Chief Counsel. He has been confirmed by the Senate Committee on Small Business and Entrepreneurship and is expected to be approved by the full Senate this month.

Recovery Tax Credits On YouTube And iTunes, Says IRS

The Internal Revenue Service today announced the availability of video and audio products to help taxpayers take full advantage of the 2009 tax provisions in the American Recovery and Reinvestment Act.

The IRS has launched a YouTube video site and an iTunes podcast site to better serve taxpayers.

People can visit the video site at www.youtube.com/irsvideos to view information about the Recovery, tax tips and how-to videos. These videos will be in English, Spanish, American Sign Language and other languages.

The YouTube focus will be on the provisions of the American Recovery and Reinvestment Act. Videos will highlight the $8,000 first-time homebuyer’s credit for those who purchase a house this year, the sales or excise tax deduction on new car purchases and the expanded credits for education and energy conservation.

The IRS YouTube channel will debut with seven Recovery videos in English and ASL and eight in Spanish. Also, included will be a video on using the IRS Withholding Calculator. Many workers received the Making Work Pay tax credit in April through their tax withholding at work. However, people who have more than one job or working spouses should especially check their withholding to ensure neither too much nor too little is being withheld. People can use the calculator to help determine if they should make adjustments.

People can visit the audio site at iTunes to listen to IRS podcasts about ARRA tax credits. People without an iTunes account can hear those same podcasts, in English and Spanish, on IRS.gov’s Multimedia Center.

Small Biz Health Care Roundup

Here's a sampling of this week's top health care reform articles in relation to small businesses:

How To Watch The Speech (NY Times, Prescriptions blog)
Obama Seeks Game-Changer With Health Speech (Fox News)
Tax On Expensive Health Plans Proposed (CNN Money)
Democrats Promise To Send Health Plan To Obama (NY Times)
8 Questions About Health-Care Reform (Washington Post)
Despite Fears, Health Care Overhaul Is Moving Ahead (NY Times)
Fix Health Care. But Fix The Deficits, Too (CNN Money)

Are You A Florida Small Business Owner?

This fall, small-business owners in the Orlando-area will have a great opportunity to broaden their skills and network with other entrepreneurs and small business-centered organizations and companies. The Association of Small Business Development Centers (ASBDC) is hosting “Orlando Small Business Community Day” on Thursday, September 17, at Rosen Shingle Creek Resort.

The event will feature informative workshops, roundtables and a trade show. Participants will have the opportunity to learn from various small-businesses experts, including Rhonda Abrams, a Small Business columnist for USA Today, and Al Lautenslager, an author, consultant, speaker, and business owner. Other workshops will be hosted by trade show vendors.

Visit the ASBDC online for more information and to register for “Orlando Small Business Community Day.”

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Washington Watch - August 5, 2009

NASE — Wednesday, 5 August, 2009 14:00:00 EST

House Passes Short-Term SBA Reauthorization

The House recently passed a bill by voice vote for a short term reauthorization of the Small Business Administration (SBA) a few days after the measure was cleared by the Senate.

The bill, sponsored by Senate Committee on Small Business & Entrepreneurship Chair Mary Landrieu (D-La.) and cosponsored by Committee Ranking Member Olympia J. Snowe (R-Maine), would provide for an additional temporary extension of the SBA through September 30th.

The bill, S. 1513, has been submitted to President Barack Obama. The latest short-term reauthorization of the SBA expired July 31st (PL 111-10).

Self-Employed Proposals MIA in Health Reform Bills

The NASE recently spoke out on current health care reform legislation, which is notably missing two items that would have a substantial effect on the affordability of coverage for the self-employed. The NASE has spoken out strongly in the past about allowing the self-employed to deduct their health care costs as a business expense and improving HRAs to allow the self-employed business owner to participate in the plan. Unfortunately, neither provision has been included nor offered as amendment to the current larger health reform bills.

"You would think," said NASE executive director Kristie Arslan, "that with so many Americans taking care of their families and creating jobs through self-employment, Congress would be certain to pay more attention to the needs of this growing demographic. Unfortunately, that is not the case, especially when it comes to health reform."

Earlier this year, legislation was introduced in the House (H.R. 1470) and Senate (S.725) to allow the deductibility of health costs. The idea of opening eligibility for HRAs has been briefly entertained by legislators, since it would likely significantly increase the number of owners who could offer assistance on health costs for themselves and their employees.

"Regrettably, expansion of Health Reimbursement Arrangements is not on the radar screen of policymakers on the Hill," Arslan remarked. "In fact, we have heard rumblings that Senate Finance may actually want to take away the tax deductibility associated with HRAs in order to help finance their health reform proposal."

To read Arslan's entire analysis, visit the NASE Staff Blog.

House Small Business Committee Chairwoman Urges Revisions To Health Reform Bill

House Small Business Committee Chairwoman Nydia Velazquez (D-N.Y.) recently wrote an open letter to Rep. Henry Waxman (D-Calif.), Chairman of the House Committee on Energy and Commerce, and Rep. Frank Pallone (D-N.J.), Chairman of the Health Subcommittee, regarding the current draft of health care reform legislation.

“For entrepreneurs, many of which are already struggling with skyrocketing premiums, reform holds the promise to rein in runaway health care costs, providing badly needed relief….However, given the enormous economic pressures small businesses are currently enduring, we must be careful that the final legislative product does not unduly burden them,” wrote Rep. Velazquez.

Rep. Velazquez recommended a number of changes to several provisions of the legislation, America’s Affordable Health Choices Act of 2009 (H.R. 3200), to avoid adverse effects on small firms. These recommendations included:

Measuring the ability of small firms to contribute to health care costs for their employees based on a combination of average gross revenue and an industry classification system, similar to the way the Small Business Administration currently determines eligibility for programs, instead of by payroll size.
Expanding guaranteed access into the new Health Insurance Exchange that will be established by the legislation beyond the current limit of firms with 20 or fewer employees, as excluding firms from the exchange will leave them with fewer choices for affordable coverage and little incentive to offer coverage.
Continuing to identify ways to give small businesses more options in purchasing insurance, such as allowing small firms to create cooperatives or otherwise pool risk to they can secure affordable, accessible coverage.

To read the full text of Rep. Velazquez’s letter, click here.

Small Biz Health Care Roundup

Here's a sampling of this week's top health care reform articles in relation to small businesses:

Health Care: Small-Business Owners Are Watching (Virginian-Pilot)
No Recess From Work on Health Care (Congressional Quarterly)
Health Reform Follies: How To Keep Up (CNN Money)
House Small Business Committee Chair Speaks Out On Health Care Bill (House Small Business Committee Web Site)
What Now For Obamacare? (The Economist)
Digital Health - Struggle Or A Pipedream? (CNN Money)

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Washington Watch - July 22, 2009

NASE — Wednesday, 22 July, 2009 15:00:00 EST

Health Reform Divides Congress

House lawmakers are threatening to walk away from discussions on the massive health care overhaul being debated in Congress. A group of fiscally conservative Democrats, called the Blue Dog Coalition, have indicated thy will push back on negotiations until their concerns on a tax on the wealthy being used as a revenue raiser are addressed. Last week, over 20 Democrats wrote a letter to House Speaker Nancy Pelosi worrying that the tax would inadvertently hurt the self-employed and micro-businesses.

Spokespersons for the health legislation circulating in the House Ways and Means Committee say that less than 5 percent of small businesses would be hit by the tax. In their letter, the lawmakers argue nearly two-thirds of households filing tax forms with an adjusted gross income above $250,000 filed as some type of small business entity.

"Especially in a recession, we need to make sure not to kill the goose that will lay the golden eggs of our recovery," the group remarks in the letter. "By concentrating the cost of health care reform in one area, and in one that will negatively affect small businesses, we are concerned that this will discourage entrepreneurial activity."

The Chairman of the Blue Dog Coalition's Health Care Task Force, Rep. Mike Ross (D-Ark.), said the group is working on between 12-24 amendments to the current legislation.

Visit the NASE Staff Blog for the latest take on health reform by Kristie Arslan, Executive Director of the Legislative Office.

Small Business Groups, Realtors Join NASE To Ask Legislators To Remember Self-Employed

The National Association for the Self-Employed (NASE) has teamed up with the National Federation of Independent Businesses (NFIB), the National Small Business Association (NSBA) and the National Association of Realtors® (NAR) to ask Congress to address the high health care costs affecting America’s self-employed workforce as part of health reform legislation.

In letters to members of the United States House of Representatives, the groups remind representatives that, “With over 22 million individuals, the self-employed are a significant portion of the American workforce. As a result of their individual small size, they have been hit particularly hard by the skyrocketing health care costs, forcing many of them to become uninsured. In a 2008 study, the National Association of the Self-Employed (NASE) found that 20 percent of the nation’s self-employed have no health coverage. In certain industries, such as real estate, that percentage is even higher.”

The letter asks legislators to help the self-employed by refraining from forcing individuals to buy coverage they cannot afford, making the tax treatment of health care equitable for all employers, opposing a mandate on all employers to provide coverage, and promoting transparency and efficiency in obtaining health coverage.

The NASE has been vocal in its belief that every American should have access to affordable health care, but that many of the mandates and reforms currently under discussion will have unintended consequences on the self-employed.

For more information on the NASE’s efforts on Capitol Hill including copies of letters sent to Congress, visit here.

Small Biz Health Care Roundup

The latest reform debate is centering around small businesses and reform package cost estimates:

Leaders Facing a Big Sales Job on Health Bill (Roll Call)
Paying for health care: Wealth tax is 'legitimate' (CNNmoney.com)
Governors Fear Medicaid Costs in Health Plan (NY Times)
Louisiana Governor Bobby Jindal, House Minority Leader John Boehner lock horns with health care reform package (MSNBC.com)
Obama administration officials bite back on CBO cost estimate (Washington Post)
Health Care and Taxes: 10 Worst States for the Rich (ABCnews.com)
Obama Push Senate On Health Care (Bloomberg on YouTube)

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