Washington Watch - August 1, 2012

NASE in the News

Stay tuned! Check out our latest videos, television appearances and podcasts.

Washington Watch - August 1, 2012

NASE To Congress: Put Self-Employed Health Deduction On Your Hearing Docket

On behalf of the 21 million self-employed Americans, the National Association for the Self-Employed (NASE) is, once again, holding Congressional leaders accountable for the lack of true small business legislation in the 112th session. Earlier this week, the NASE 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.

"As the legislative calendar quickly compresses, the NASE is calling on House leaders to move quickly to address the significant inequities faced by the self-employed community as it relates to their inability to deduct their health insurance premiums,” stated NASE Director of Government Affairs, Katie Vlietstra. “H.R. 6102 includes several additional 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 to supporting and encouraging small business growth in the U.S.”

In June 2012 the NASE released its national health care survey, in which 85% 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%.  

The self-employed are forced to pay an average of $1800 more in taxes per year than their big business counterparts because of they do not have the ability to deduct their health insurance premiums as a business expense.

The bill was introduced by champions of the self-employed in the House, Representatives Jim Gerlach (R-PA) and Ron Kind (D-WI) earlier this month. 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. 

Read the full text of the letter here.

Move Allows Government To Operate For An Additional Six Months

In a rare bipartisan effort, Senate Majority Leader Harry Reid (D-Nev.) and House Speaker John Boehner (R-Ohio) reached an agreement to fund the operation of the U.S. government on a six-month extension, bypassing the November election and through the expected “lame duck” session post-election.  The funding level would be set at $1.047 trillion as established in last year’s Budget Control Act.

The funding decision, however, does not tackle the anticipated expiring tax provisions slated for December 31, 2012. Currently the Democrat-controlled Senate and Republican-controlled House have released vastly different proposals. In the Senate, Democrats approved a one-year extension for households making $250,000 or less. The House is expected to debate and ultimately pass a much broader package that extends for one-year all of the 2001 and 2003 tax cuts, traditionally labeled as the “Bush tax cuts.”  Philosophically, both parties are miles away from one another, signaling that any compromise will be undoubtedly mirrored in the November election politics.

Lawmakers are expected to approve the six-month extension when they return from the August recess, post-Labor Day.  Tax extension talks will certainly draw out through the fall and one would guess that if an equitable resolution is reached it will be moments before the December 31, 2012 deadline. 

NASE Quick Poll: Technology

What types of technology/Internet topics would you like to learn more about as a small-business owner? Which would you choose: Efficiency tools, Search Engine Optimization (SEO), the Cloud, Social Media, or Computer Systems/Accessories?

Please click here to vote (in the left hand column of page).

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.

The Latest News from the NASE

Our RSS feed service allows you to retrieve instant updates from the NASE website. est articles, news, and other helpful information, all delivered directly to you!

Courtesy of NASE.org