Do you realize as a self-employed individual you pay 15.3 % in taxes on your health insurance premiums? Did you know you are the only segment of the business population that pays this extra tax on health insurance?A sole proprietor paying $7,000 annually for health insurance is also paying $1,071 in extra self-employment taxes because they are unable to deduct their health costs as a business expense on their Schedule C tax form. All other businesses get this benefit.

CALCULATION: Annual cost of health premiums X 15.3% = Amount in extra taxes

Tell the NASE how much in extra taxes you are paying and what you could do with that extra money. Why do you think it is important to include equalizing the tax treatment of health costs for all businesses in health reform?

NASE Member Stories

STEVE THOMPSON - Lovington, NM

Submitted: 12/8/2009

    I pay so much in taxes that it is hard to keep my equipment updated. We need a new pulling unit but cannot afford to buy it. I am running a 1988 truck. The only way to get a loan is a personal loan with high interest rates because there is no funding available through SBA & we don't qualify at a low interest rate. We only need a few thousand dollars not several hundred thousand.
    My health care insurance runs more than my mortgage payment. It hasn't been used since we have had it but that didn't keep the premiums from going up another $60.00 a month.
    With so little work around here (the oil field), what little money we get we have to be very careful where we spend it. Especially with income tax coming up.
    Less taxes on small business would mean so much more money that we could put back in the business, which would mean more money being spread through the community.

Thank you,
Steve Thompson

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