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The President’s Budget and The Self-Employed Agenda: A First Step, But More Steps Are Needed

Tuesday, February 21, 2012

For Immediate Release: Contact:  Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: NASEtweets

Washington, D.C., February 21, 2012 – The President’s proposed FY 2013 budget request released last week includes several initiatives of interest to the nation’s 22 million self-employed and at least one of the items on the National Association for the Self-Employed (NASE) Self-Employed Agenda.

“The President’s FY 2013 Budget is a step in the right direction, but it must be followed by additional concrete steps to address the specific challenges that make it difficult for self-employed people to start and grow businesses,” explained Kristie L. Arslan, president and CEO of the National Association for the Self-Employed. “The President’s budget request falls short on a critical element of the Self-Employed Agenda: the self-employment tax deduction on health insurance. The time is now for action on this priority which will provide America’s smallest businesses with the same business deduction for health coverage that big business enjoys.” 

The President’s budget request includes provisions to help boost self-employed individuals and microbusinesses: 

  • An Innovation Fund of $200 million to provide early-stage financing of new businesses 
  • A provision to support community banks including $30 billion in capital outlays
  • A doubling of the pension plan start-up credit from $500 to $1,000 per person
  • A permanent doubling of the amount of start-up expenditure deductible from $5,000 to $10,000 per year
In addition, the President’s budget request calls for elimination of the alternative minimum tax (AMT), an item on the NASE’s Self-Employed Agenda. 

Unfortunately, the budget request to expand the Small Business Health Tax Credit did not address allowing the self-employed to qualify for the credit, denying the benefit to the largest segment of the small business community. 

Congressional negotiators last week announced agreement on a one-year extension of the payroll tax, another item on the Self-Employed Agenda. The NASE’s Self-Employed Agenda includes five common-sense tax policy solutions that will help spur economic growth in the self-employed sector of the economy. In addition to the AMT, health insurance and startup deductions and payroll tax extension, it includes simplification of the standard home office deduction. 

Arslan added, “We need smart federal policies to encourage new businesses and ensure that America’s self-employed can continue to contribute to the nation’s economic growth.” 



About the NASE
The National Association for the Self-Employed (NASE) is the nation's leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's website at NASE.org.


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