Washington Watch - February 22, 2012


Washington Watch - February 22, 2012

The President’s Budget: A First Step, More Steps Needed

The President’s proposed FY 2013 budget request released last week includes several initiatives of interest to the nation’s 22 million self-employed and at least one of the items on the National Association for the Self-Employed (NASE) Self-Employed Agenda.

“The President’s FY 2013 Budget is a step in the right direction, but it must be followed by additional concrete steps to address the specific challenges that make it difficult for self-employed people to start and grow businesses,” explained Kristie L. Arslan, president and CEO of the National Association for the Self-Employed. “The President’s budget request falls short on a critical element of the Self-Employed Agenda: the self-employment tax deduction on health insurance. The time is now for action on this priority which will provide America’s smallest businesses with the same business deduction for health coverage that big business enjoys.” 

The President’s budget request includes provisions to help boost self-employed individuals and micro-businesses: 

  • An Innovation Fund of $200 million to provide early-stage financing of new businesses
  • A provision to support community banks including $30 billion in capital outlays
  • A doubling of the pension plan start-up credit from $500 to $1,000 per person
  • A permanent doubling of the amount of start-up expenditure deductible from $5,000 to $10,000 per year

Ask Congress To Support New Businesses!

The Help Entrepreneurs Create American Jobs Act of 2012, H.R. 4032, makes permanent the deduction for startups at $10,000. The deduction is set to expire and decrease to $5,000 at the end of the year. The startup deduction provides assistance to those starting their own businesses. The permanent tax deduction serves as a strong incentive for future self-employed individuals who were previously daunted with the upfront expenses associated with starting a business.

Please urge your Member of Congress to cosponsor and support H.R. 4032, The Help Entrepreneurs Create American Jobs Act of 2012. Visit the NASE's Legislative Action Center to find the contact information for your lawmakers.

Small Business Worker Classification: Independent Contractor Or Employee?

The self-employed contribute a mighty portion to the U.S. economy – nearly $1 trillion. There is no question that they are helping create jobs by growing and hiring new workers. The question is, by hiring additional workers, are micro-businesses (those with 10 or fewer employees) actually creating more paperwork for themselves? 

“Unfortunately, there always seems to be more paperwork required as the business grows,” says Keith Hall, National Tax Advisor for the National Association for the Self-Employed (NASE). “Knowing whether a new worker is an employee or an independent contractor is critical in knowing exactly what paperwork is required.”
Click here to read more. 

Census: Firm Size Data

U.S. Census Bureau annual employment size of firm data on the number of firms, employment, firm births, deaths and job creation has been updated to 2009.  As with the economy in general, small businesses struggled from 2008 to 2009. The over twenty-years of data presents opportunities to evaluate how small businesses have weathered business cycles. Births, deaths and job creation for metropolitan statistical areas and counties will be available at a later date.
Click here for data.

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