Tax Reform Could Help Millions of Micro-businesses Avoid Leaving Money on the Table [Commentary]

Self Made: NASE's Blog

Blog With Us

Welcome to the Self Made. This is a blog focused primarily on the self-employed and micro-business and full of fantastic posts by not only our team of experts but by YOU!  We realize that there are many ways to help the small businesses out there which is why we invite other business minded individuals to post here and help the rest of the community as well.

Tax Reform Could Help Millions of Micro-businesses Avoid Leaving Money on the Table [Commentary]

May 12, 2010

Posted by Kristie Arslan - April 15th has come and gone, and once again millions of micro-businesses got less tax relief than they are entitled to because of the ridiculous complexity of the home office deduction.

Each year, almost 60 percent of Americans who are self-employed fail to take a home-office deduction. In round numbers, this means that $7.25 billion remained in the federal treasury instead of registering on the balance sheets of America’s smallest businesses this year alone.

The fact that so many people don’t use the deduction even though many small businesses are struggling to survive speaks for itself: the current home-office deduction is too complex and burdensome to tackle, and many who are eligible just don’t take it.

This is unacceptable given the fact that the self-employed are a critical component of the nation’s financial recovery and that they are a leading generator of new jobs. The self‐employed contribute around a trillion dollars to the U.S. economy each year and their businesses are growing at a rate of about 3.5 percent per year.

Their message to lawmakers is simple:

  • The home-office deduction must be simplified and expanded to allow home-based businesses to grow.
  • An optional standard deduction, such as the one proposed in the Home Office Deduction Simplification Act (H.R. 3615), within the range of $1,250-$1,750 will encourage those eligible to finally take the deduction. 

We hear the President and Members of Congress stand in front of the cameras day in and day out claiming that they are working for Main Street and that small business is what will pull us out of this economic decline.

What America's 23 million self-employed need is more action and fewer words.  It is time for the policy to catch up to the rhetoric.

How AI Assistants Improve Self-Employed Professionals’ Business Skills?

Self-employed professionals are always in the lookout for the best way to enhance their skills in order to survive in the current highly competitive business environment. Over the years, AI assistants have become a necessity due to the kinds of support they offer in terms of organization, management of tasks, and valuable insights to drive

Written By enis (@enis) - Opinion Pieces

The Impact of Blockchain on Small Business Supply Chains in the USA

Blockchain technology, often associated with cryptocurrencies like Bitcoin, has far-reaching implications beyond digital currencies. One area where blockchain is making a significant impact is in supply chain management, especially for small businesses in the USA. By enhancing transparency, efficiency, and trust, blockchain is revolutionizing how small businesses manage their supply chains, providing a competitive edge

Written By Anthony Lucas (@anthonylucas) - Industry News and Trends

What’s The Impact Of Innovative Office Layouts For Productivity? Let’s Find Out

Long gone are the days of office cubicles and beige-toned offices. Structured layouts, with limited spaces for team collaboration, are now distant memories. Throughout recent years, office layouts have undergone a massive transformation. Businesses are starting to invest in the space their team works from. The reason? Well, a well-designed workspace can help to improve

Written By Ella Woodward (@ella) - How-To Guides / Tutorials

The Power of Content Marketing: Strategies for Small Business

When it comes to getting customers, the majority of small businesses rely on local advertising, word of mouth and paid advertising. For most small businesses, making content doesn’t seem like a direct way to generate revenue for their business so it’s not top of mind. However, content marketing is arguably the most powerful way to

Written By Delilah (@delilah-a) - How-To Guides / Tutorials

Harnessing Local SEO: A Guide for Small Businesses to Dominate Their Market

In today’s digital landscape, small businesses face fierce competition not only from national and international brands but also from other local players vying for the attention of the same target audience. With more and more consumers turning to online searches to find products and services in their vicinity, it has become crucial for small businesses

Written By Delilah (@delilah-a) - How-To Guides / Tutorials

Want More?


See our latest Self Made content by clicking here.  Want to see our archives, click here.

Courtesy of NASE.org
https://www.nase.org/business-help/self-made-nase-blog/self-made/2010/05/12/Tax_Reform_Could_Help_Millions_of_Micro-businesses_Avoid_Leaving_Money_on_the_Table_Commentary