NASE Blogs

Making the Tax Treatment of Health Care Costs Fair for All Businesses

Oct 01, 2009
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?