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Senate Bill Deducts Health Insurance for Self-Employed
On July 22, 2015, Senator Vitter, Chairman of the Senate Small Business and Entrepreneurship Committee, introduced a huge package of tax deductions for small businesses, including the full deductibility of health insurance for the self-employed.
S. 1827, Small Business Tax Compliance Relief Act, "does not see to alter tax rates or pursue wholesale reforms. Instead, the legislation is mostly technical in nature and provides relief from provisions frequently cited as overly restrictive or onerous for a small business," stated the Senator in a letter to supporters.
The NASE has long championed the full deductibility of health insurance for the self-employed. The inability for the self-employed to deduct the cost of their health insurance is a significant financial burden, increases their tax liability by nearly 15.3% annually than other business owners. If the self-employed were allowed to fully deduct their health insurance costs as a business expense, the U.S. economy would have roughly $39 billion injected annually that would allow for individuals to re-invest in their business, purchase goods, and hire additional employees.
We look forward to working with the Chairman and his colleagues in advancing this important piece of legislation.