NASE To Congress: Get Moving On The Self-Employed Health Care Tax Deduction


NASE To Congress: Get Moving On The Self-Employed Health Care Tax Deduction

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By Kristie L. Arslan

On behalf of the 21 million self-employed Americans, the NASE is, once again, holding Congressional leaders accountable for the lack of true small-business legislation in the 112th session.

The NASE recently submitted a letter to the House Ways and Means Subcommittee on Tax and Select Revenue formally requesting a hearing on H.R. 6102, America’s Small Business Tax Relief Act of 2012.

We Want Action Now

Before the election campaign season kicks into high gear, the NASE is calling on House leaders to move quickly to address the significant inequities faced by the self-employed community. And one of the largest inequities is the fact that the self-employed are not allowed to deduct their health insurance premiums as a business expense.

H.R. 6102 includes several provisions that would lift the tax burden placed on the self-employed and small-business community. We stand united as we advocate for practical solutions supporting and encouraging small-business growth in the U.S.

The bill was introduced by champions of the self-employed, Reps. Jim Gerlach, R-Pa., and Ron Kind, D-Wis., in July 2012. The health insurance deduction is part of a larger package of permanent deductions aimed at providing fiscal clarity for the self-employed in a tax environment that is often clouded by temporary one to two year fixes.

How H.R. 6102 Could Help The Self-Employed

The NASE champions the permanent, full deduction of health insurance for the self-employed, one of the provisions included in H.R. 6102.

In June 2012 the NASE released its national health care survey, in which 85 percent of respondents indicated that rising health coverage costs have been detrimental to themselves, their families, their businesses and their bottom line over the past three years.

Juxtapose this against the fact that in 2011, the number of insured self-employed was at its highest, 77 percent. And yet, the self-employed pay on average nearly $1,800 in additional taxes that no other business owners face–simply because they decided to purchase health insurance.

How H.R. 6102 Could Boost The Economy—And Your Business

If the self-employed were allowed to fully deduct their health insurance costs as a business expense, they could inject roughly $39 billion into the U.S. economy annually. That money would give individuals the financial ability to re-invest in their business, purchase goods and hire additional employees.

How could H.R. 6102 boost your micro-business? Find out by following our advocacy efforts. You can also read the full text of our letter to Congress.

Kristie L. Arslan
is president and CEO of the NASE and provides critical insight to policymakers on issues affecting our nation’s self-employed. You can contact her at

NASE to Host Educational Webinar Series on the Affordable Care Act

Beginning in September, the NASE advocacy team will host a series of educational webinars aimed at informing NASE Members on aspects of the Affordable Care Act that will most likely impact the self-employed. Topics covered in the five-part webinar series include:

1. New Rules and Requirements for Individuals and the Self-Employed

2. How You Will Shop For Health Insurance in 2014

3. Affordability of Health Coverage for the Self-Employed

4. Can You Keep the Health Insurance You Have?

5. Health Reform Law and the 2012 Presidential Election

NASE Members may find registration information in the Action Alert box on the Your Voice in D.C. page on

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