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Washington Watch - November 14, 2012

Webinar: How Will The Election Impact the Self-Employed Agenda In 2013?

With the election behind us, the NASE is evaluating and analyzing the impact of the 2012 election on the self-employed agenda.  To that end, we invite you to participate in our “Post-Election Webinar” on Thursday, November 15, 2012 at 11 a.m. (EST).  The NASE Advocacy team will provide an analysis on the election results, along with laying out the issues that congress must address in the lame duck session, and finally, the NASE’s advocacy agenda for 2013.

The webinar will be facilitated by NASE’s Director of Government Affairs, Katie Vlietstra and will include a welcome by NASE’s CEO & President, Kristie Arslan. 

Registration for Thursday’s webinar is required.

The webinar will be recorded and available for NASE members at

3 In 5 Self-Employed Support Tax Reform Proposals That Would Drop Individual Rate, Eliminate Deductions

The self-employed want Congress to take pains to protect the middle class from tax increases, according to a new study published by the NASE. When asked about preference in proposals to address expiring tax rates, 46% of micro-businesses chose a one-year extension of current tax rates for those making under $250,000. Thirty-four percent indicated that they would like to see the extension applied to all income brackets. Nearly 100 percent of business owners said it is very or moderately important for Congress to address these reforms.

"The findings of our tax survey re-emphasize the growing impatience of the self-employed as Congress continues to fail to address comprehensive tax reform," said Director of Government Affairs Katie Vlietstra. "Seventy-eight percent of respondents support efforts to reform both the individual and corporate tax structure; in fact, 61 percent of respondents are open to exploring proposals that drop the individual rate and eliminate deductions."

One in four business owners said that Congress’ inability in recent years to enact long-term tax policy impacts business owners' ability to plan for the coming year. One in three said that this behavior continues to highlight the federal government’s inability to address issues in a timely fashion.

Sixty-one percent would be amenable to giving up a significant number of deductions, if the individual tax rate were dropped to an acceptable level. These are the top five deductions currently taken: charitable contributions, health insurance deduction, mortgage interest deduction, qualified medical and dental expenses, home office deduction and retirement contributions (tie).When asked what top three deductions should be kept in the scenario, respondents chose the health insurance deduction, mortgage interest deduction and contributions to retirement accounts. 

Business owners were divided on increasing the corporate tax rate in an effort to reduce the individual tax rate: thirty-eight percent said it would depend on the level of increase and decrease. Thirty-five percent were against the proposal and twenty-six percent were for it.

"It is our hope that the survey provides the final push for Congress to work to address these issues and focus on a long-term comprehensive approach to tax reform in 2013," said Vlietstra. "The self-employed demand an equitable tax environment."

See the full survey in the NASE Survey Results section here.

It's Global Entrepreneurship Week

The NASE joins the self-employed think tank, the Kauffman Foundation, in celebrating Global Entrepreneurship Week. According to Kauffman, it's the world's largest celebration of the innovators and job creators who launch startups that bring ideas to life, drive economic growth and expand human welfare. During one week each November, thousands of events and competitions around the world inspire millions to engage in entrepreneurial activity while connecting them to potential collaborators, mentors and even investors. Now in its fifth year, Global Entrepreneurship Week has expanded to 130 countries—empowering nearly 20 million people through 125,000 activities over that time.

Learn about activities in your area by visiting the Kauffman Foundation online.

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