News

Small Business Jobs & Credit Act Signed Into Law

NASE Participates In Signing Ceremony With President Obama

Washington, D.C., September 28, 2010 – Yesterday, President Barack Obama signed into law legislation that will allow the self-employed to deduct their health insurance costs as a business expense for payroll tax purposes. Though only applicable to 2010 tax returns, the passage of this proponent is a key “foot in the door” for future battles on health costs and the self-employed, according to the National Association for the Self-Employed (NASE).

Before signing the bill, President Barack Obama offered a few remarks:

Now this is important because small businesses produce most of the new jobs in this country.  They are the anchors of our Main Streets.  They are part of the promise of America – the idea that if you’ve got a dream and you’re willing to work hard, you can succeed.  That’s what leads a worker to leave a job to become her own boss.  That’s what propels a basement inventor to sell a new product – or an amateur chef to open a restaurant.  It’s this promise that has drawn millions to our shores and made our economy the envy of the world.

“The NASE lauds the Administration and Congress for passing this small business legislation into law,” remarked NASE Executive Director Kristie Arslan. “It is imperative that lawmakers continue to focus on small business policy that helps the majority of the business community – the self-employed.”

The one-year tax deduction for sole proprietors on health care costs for payroll tax purposes on their 2010 tax returns is expected to save self-employed business owners approximately $456 to $968 in taxes next year. This is a significant bottom-line cost savings in this difficult economic climate. 

Additionally, the temporary provision will provide a one-year level playing field for America’s smallest businesses that have not benefited from the same tax treatment of health care costs that all other businesses have enjoyed.

To learn more about the qualifications and requirements to benefit from this one-year tax deduction, please visit NASE In Action for an informational sheet on this important provision.

The NASE, in coordination with the coalition supporting Equity for Our Nation’s Self-Employed, will continue efforts to make this tax benefit permanent for self-employed Americans.