Washington Watch - April 20, 2011


Washington Watch - April 20, 2011

House Adopts GOP 2012 Budget Resolution

The Republican-backed fiscal 2012 budget by Rep. Paul Ryan, which calls for profound spending cuts and a retooling of the Medicare system, was approved by the House after the rejection of other alternatives.

The 2012 budget resolution would allocate $1.019 trillion, less than the $1.091 trillion allocated for fiscal 2010, according to the Congressional Budget Office (CBO). The 2012 allocation would also be less than the president's budget request of $1.121 trillion.

When it came time to vote, the legislation followed partisan lines, with the exception of four Republicans that voted against it. They are Denny Rehberg of Montana, Walter B. Jones of North Carolina, David B. McKinley of West Virginia, and Ron Paul of Texas.

The House-adopted bill is set to conflict with Democratic Senators and the White House's version. Debate over spending priorities will continue in May after lawmakers return from a two-week recess.

Read CBO's take on the Ryan fiscal year 2012 budget, as well as the White House fiscal 2012 budget.

1099 Repeal Signed By Pres. Obama

The National Association for the Self-Employed (NASE) is pleased that President Obama has signed a repeal of the additional reporting requirement regarding Form 1099 passed under the Affordable Care Act. NASE Executive Director Kristie Arslan had these comments after the repeal became law:

"America's smallest businesses - the self-employed and micro-businesses - will benefit the most from this repeal," said Arslan. "For over a year, small business organizations like the NASE have joined forces to raise awareness about the extent of damage this law would have on Main Street shops. We are pleased to see that the President has officially removed the burden from business owners' backs so, come 2012, they won't have to worry about the crushing amount of paperwork that the law would have demanded." 

SBA Administrator Karen Mills also remarked on this historic occasion:

"The SBA and President Obama supported repealing this provision, which would have required businesses to send 1099 forms for all purchases of goods and services over $600 annually. With this bipartisan effort, we have removed a requirement that would have been an undue barrier to small business growth."

Congress Examines Small Biz And Taxes

The House Committee on Small Business recently held a hearing to examine the complexity of the current tax code and find solutions that will enable small businesses to thrive instead of being crippled by unnecessary burdens. To watch the hearing on YouTube, click here.

The NASE has long maintained that the home office deduction must be simplified and expanded to allow home-based businesses to easily utilize the deduction. The current IRS form for indicating a home office has the words, "See Instructions," 17 times on one page. It is no wonder that small-business owners shy away from this important tax benefit. An optional standard home office deduction would encourage more eligible business owners to take a deduction to which they are entitled.

Another very important tax issue for entrepreneurs is the ability to deduct the cost of their health insurance as a business expense. The NASE continues to advocate hard for Congress to make the temporary deduction of these costs into a permanent deduction beyond the 2010 tax year.

 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.

Courtesy of NASE.org