NASE News

NASE Sponsors White House National Small Business Week Call

NASE — Tuesday, 15 May, 2012 15:15:26 EST

In celebration of National Small Business Week (NSBW), NASE will co-host a White House conference call briefing on the activities planned around the country in honor of NSBW.

Please join us as we kick-off and celebrate the 22 million small business owners across the U.S.

National Small Business Week White House Conference Call Invitation

NASE Asks House Ways and Means To Explore Expired Tax Cuts for the Self-Employed

NASE — Wednesday, 25 April, 2012 16:53:54 EST

NASE submitted the below statement for the record in an effort to ensure that the House Ways and Means Committee moves forward on tax reform that encompasses the self-employed community, specifically, the individual income tax rate, health insurance premium deduction, and the start-up deduction.

House Ways and Means Committee Hearing- Statement for the Record (4-26-12)

Self-Employed and the Economy

NASE — Thursday, 22 March, 2012 11:18:16 EST

Self-Employed and the Economy

March 2012

Results

The nation’s smallest businesses are still feeling negative effects of the economy, including cash flow issues for business and family, according to a new survey by the National Association for the Self-Employed (NASE). Three-quarters of the self-employed and micro-businesses owners say their company provides the main source of income in their household.

“Sadly, our survey re-enforces the idea that economic recovery is slow going and that 70% of survey respondents believe that current state of the economy has either shown no improvement or has worsened in the last 12 months,” stated Katie Vlietstra, Director of Government Affairs for NASE. “It is also evident from our survey that our members are perplexed at what they perceive as little action by Congress to put forth common sense ideas to address key issues related to the self-employed and micro-business community. For example, a permanent health insurance deduction, individual tax reform, and access to capital - three things that could significantly and positively impact the nation’s economy.”

Notable findings include:

50% self-employed and micro-business owners have had to refrain from making improvements or growing their business in the last year.
46% have had to utilize personal savings or retirement savings to address cash flow issues.
33% are having difficulty affording basic needs (housing, utilities, food, etc).
80% are not planning on hiring workers (full-time, part-time, or temporary) this year.

The full survey can be found here: Self-Employed and the Economy- Survey Results.

The following responses are from are from micro-businesses regarding how they have fared in the past year:

No credit available for operating capital contrary to government claims programs. The only way to get loan is if you don't need it!

I have had to file bankruptcy to keep my health insurance on myself and my employee.

I have gone without pay.

I took on a part time job that provides health benefits since I could no longer afford to pay for my own.

I have experienced greater uncertainty about the status of my business. I have not been able to plan more than a few months ahead because my customers are unwilling to commit to contracts until the last minute.

I’ve had to close the office and work from home.

Methodology

The survey was available for NASE members to take in February and March. Almost 490 small business owners opted-in to the online survey and respondents were prohibited from taking it more than once.

About the NASE

The National Association for the Self-Employed (NASE) is the nation’s leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) non-profit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association’s web site at www.NASE.org.

NASE Statement on House Passed JOBS Bill

NASE — Thursday, 8 March, 2012 14:49:04 EST

“The National Association for the Self-Employed (NASE) applauds the overwhelmingly bi-partisan approval of The Jumpstart Our Business Startups (JOBS) Act” this afternoon,” stated NASE President and CEO Kristie Arslan, “We hope that the United State Senate will address this important package of bills swiftly and continue to support small businesses.”

NASE Supports Senate Banking Hearing & Encourages Capital Formation

NASE — Tuesday, 6 March, 2012 10:13:35 EST

On Tuesday, March 6th, the NASE submitted a statement for the record in support of the Senate Banking committee hearing on capital formation. Specifically, the NASE encouraged the Senate to address crowdfunding legislation that is currently awaiting action. To learn more about crowdfunding legislation, please visit NASE in Action and read the statement for the record:

Senate Banking Committee Hearing- NASE Statement for the Record- 03-06-12

NASE Urges Senate Action on Crowdfunding Legislation

NASE — Wednesday, 29 February, 2012 11:36:19 EST

Yesterday, the National Association for the Self-Employed along with several other major small business groups urged Majority Leader Reid and Minority Leader McConnell to advance legislation related to crowdfunding. The House already passed H.R. 2930, Entrepreneurs Access to Capital Act, and two bills have been introduced in the Senate.

NASE Senate Crowdfunding Letter

NASE Ensures Small Business Protection

NASE — Friday, 3 February, 2012 14:24:50 EST

In a letter sent to the Senate Banking Committee on Monday, NASE along with 30 other organizations, urged the Senate to ensure that the CFPB is in accordance with the Snowe-Pryor provisions of the Dodd-Frank Act that ensure small businesses are not unjustly burdened with costly regulation.

Senate Banking Small Business CFPB letter

NASE Submits Statement on House Small Business Committee Hearing

NASE — Thursday, 2 February, 2012 10:00:24 EST

NASE submitted a statement for the record on yesterday's, February 1st, House Small Business Committee hearing on "The Path to Job Creation: The State of American Small Businesses." The statement outlines five areas in which the Committee can support small business growth.

House Small Business Committee Hearing- Statement for the Record

NASE Raises Concerns Over Consumer Financial Protection Bureau's Treatment of Small Businesses

NASE — Monday, 30 January, 2012 15:01:49 EST

In a letter to Director Richard Cordray, NASE along with 48 small business organizations in expressing concerns related to the Consumer Financial Protection Bureau's implementation of small business provisions in the Dodd-Frank Act.

Letter to Director Cordray

NASE Congratulates SBA Administrator Mills on Cabinet Level Role

NASE — Wednesday, 25 January, 2012 14:25:11 EST

In a letter to Administrator Karen Mills, NASE congratulates her newly designated cabinet level status and applauds President Obama's decision to elevate the Small Business Administration to cabinet level status during this time of reorganization and consolidation.

NASE Letter to SBA Administrator Karen Mills

Small Business Jobs & Credit Act Signed Into Law

NASE — Tuesday, 28 September, 2010 14:49:00 EST

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: NASEtweets

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.

About the NASE
The National Association for the Self-Employed (NASE) is the nation's leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's Web site at www.NASE.org.

Small Business Jobs & Credit Act To Be Signed Into Law By President Obama

NASE — Thursday, 23 September, 2010 14:47:00 EST

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: NASEtweets

Self-Employed To Receive Health Care Cost Assistance, Access To Capital, Other Tax Incentives

Washington, D.C., September 23, 2010 – The National Association for the Self-Employed applauds the U.S. House of Representatives for its quick action regarding approval of the Small Business Jobs and Credit Act. The legislation provides a key health tax deduction for the self-employed, though only for one year, that the health care bill failed to offer.

“Finally Congress has provided some tax relief that America’s smallest businesses will be able to see benefit their bottom line. The NASE is thrilled that a longtime priority for the self-employed has been realized with passage of this legislation, even if it is only temporary relief,” remarked NASE Executive Director Kristie Arslan. “A top focus from here will be to make permanent the ability of sole proprietors to deduct their health costs as a business expense, as all other businesses do.”

Key provisions in the bill that will assist the self-employed include:

A one-year tax deduction for sole proprietors on health care costs for payroll tax purposes on their 2010 tax returns
A temporary increase in the maximum deduction for business start-up expenditures in 2010 and 2011 from $5,000 to $10,000, subject to a $60K threshold
Extension of the Sec. 179 expensing provision that allows small businesses to immediately expense up to $500,000 (up from $250,000) for tangible personal property and up to $250,000 for improvements to leasehold property and retail property
Creation of a $30 billion Small Business Lending Fund to encourage small local banks and credit unions to increase loans to small businesses

Summary of Small Business Jobs and Credit Act of 2010

NASE — Wednesday, 22 September, 2010 14:44:00 EST

With the recent Senate passage of the Small Business Jobs and Credit Act of 2010, lawmakers moved one step closer with providing some bottom-line cost saving tax benefits to America's smallest businesses. To take a look at the provisions included in the legislation, please take a look at the following bill summary:

Summary of Provisions- Small Business Jobs & Credit Act of 2010

If you are unable to access the information via the above link, please contact the NASE at advocacy@nase.org to obtain a copy of the bill summary.

NASE Urges House To Take Quick Action For America's Smallest Businesses

NASE — Wednesday, 22 September, 2010 14:32:00 EST

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: NASEtweets

Washington, D.C., September 22, 2010 – As the House returns to take up the Small Business Jobs Act this week, Kristie Arslan, Executive Director of the Legislative Offices of the National Association for the Self-Employed (NASE), released the following statement urging quick action:

“The House needs to act now to help Main Street,” said Kristie Arslan, executive director of the NASE. “One of the provisions in the Small Business Jobs Act addresses a key component for the self-employed, which the health care reform law failed to do. It will finally allow the self-employed, though only for one year, to write off their health costs as a business expense, just like big business can.”

Earlier this week, Roll Call published an op-ed by Kristie Arslan, where she urged the House to take swift action in sending the legislation to the President. The Small Business Jobs Act will provide much needed relief for many small businesses, including the three American’s below:

Kimberly Gladis
CorePerformX Advisory Group
Gaithersburg, MD

“As I contemplated leaving a 15 year career in the corporate environment, one of the scariest and riskiest barriers to my departure was securing individual health care coverage. As a single mother of a 4 year old, I was concerned with finding a good quality plan that was also affordable. As a newly-formed LLC, I am very excited to see Congress focusing on small business, which I believe is the heart of the American economy. I believe that if Congress was able to lower the small business health care hurdle, we could anticipate more small business start ups in the future.”

Alex Echols
Terra Altus, a conservation consulting firm
Alexandria, VA

“It is time we put the tax treatment of health insurance for the self employed on equal footing with the tax treatment of health insurance for those employed by others. Why do we penalize those willing to take a risk and create a new business and jobs? Why should their families be put at risk? The "level playing field" is one of the clichés of this town – let’s level the playing field for those creating jobs and paying the full insurance costs out of their own pocket.”

Omar Uddin
UVision Consulting, Business Technology Consultancy
Ashburn, VA
http://www.uvisionconsulting.com

“Having been a sole proprietor and entrepreneur over the past 10 years, the Small Business Jobs and Credit Act and other legislation of its kind focusing on the challenges existing for entrepreneurs and small business owners is what America needs to bounce back from a potential double dip recession. A sole proprietor's health costs should definitely be deductible and this act, if passed, will surely impact the way I and other business owners grow our business, especially with the ever rising cost of health care across our country.”

NASE: Lawmakers Finally Act to Help Main Street

NASE — Thursday, 16 September, 2010 14:25:00 EST

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: NASEtweets

Self-Employed to Receive Much Needed Tax Relief from Small Business Jobs and Credit Act

Washington, D.C., September 16, 2010 – The National Association for the Self-Employed (NASE) applauds the Senate in their passage today of the Small Business Jobs and Credit Act of 2010 (H.R. 5297). In an era where the self-employed and micro-businesses (fewer than 10 employees) have grown faster than any business type, yet receive the least recognition and support from the federal government, this bill is a key first step in providing tax and access to capital relief for America’s smallest businesses.

A key victory and top legislative priority for the NASE for the past decade, is the inclusion of a one-year deduction for sole proprietors on health care costs for payroll tax purposes on their 2010 tax returns. Currently, the self-employed pay an additional 15.3% (self-employment) tax on their health insurance premium costs since they are unable to deduct those costs as a business expense. No other business entity pays additional taxes of this nature.

”Self-employed Americans have finally received some bottom-line relief in this difficult economic climate with the passage of the Small Business Jobs and Credit Act,” remarked Kristie Arslan, executive director of the NASE. “We hope that this legislation symbolizes that lawmakers are starting to pay attention to the needs of the self-employed, which represent 78% of all small businesses in the U.S.”

Other key provisions in the bill that will assist the self-employed include:

A temporary increase in the maximum deduction for business start-up expenditures in 2010 and 2011 from $5,000 to $10,000, subject to a $60K threshold
Extends the Sec. 179 expensing provision that allows small businesses to immediately expense up to $500,000 (up from $250,000) for tangible personal property and up to $250,000 for improvements to leasehold property and retail property
Creation of a $30 billion Small Business Lending Fund to encourage small local banks and credit unions to increase loans to small businesses

The bill will now head back to the House of Representatives for a final vote and is expected to be signed into law within the next week.

Despite excitement over H.R. 5297’s movement through the Senate today, the NASE hopes to see Congress address the increased Form 1099 reporting requirement passed under the health care law prior to the end of this legislative session, as well as the extension of the individual income tax rates.

Main Street, Consumers One Step Closer To Accountable Wall Street

NASE — Friday, 21 May, 2010 16:43:00 EST

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: NASEtweets

New Consumer Financial Protection Bureau Must Consider Small Business Impact Of New Regulations

Washington, D.C., May 21, 2010 – The effort to ensure a safer, more consumer-friendly Wall Street moved one step closer to success with the passage Thursday night of the Restoring American Financial Security Act in the Senate. Details of the final bill will now be reconciled between the House (H.R. 4173) and Senate (S. 3217), but the essence remains the same: create a consumer watchdog to protect against hazardous financial situations, regulate banks more closely and streamline massive institutions before they have a chance to fail.

– The effort to ensure a safer, more consumer-friendly Wall Street moved one step closer to success with the passage Thursday night of the Restoring American Financial Security Act in the Senate. Details of the final bill will now be reconciled between the House () and Senate (), but the essence remains the same: create a consumer watchdog to protect against hazardous financial situations, regulate banks more closely and streamline massive institutions before they have a chance to fail.

“The self-employed and micro-businesses were hit particularly hard during the financial crisis and are still reeling from its effects,” commented Kristie Arslan, executive director (legislative offices), in a recent NASE Staff Blog post. “Much of their personal finances are tied up with their business finances. Their reliance on credit cards, lines of credit and home equity loans to help with the daily operating costs of their business left the self-employed especially vulnerable to unpleasant industry practices.”

The National Association for the Self-Employed (NASE), and other small business organizations, worked collectively to ensure that small business and the self-employed had a voice in this process. Due to the leadership of Senators Snowe (R-ME), Pryor (D-AR), Graham (R-SC), Menendez (D-NJ), Franken (D-MN), Shaheen (D-NH), Bond (R-MO) and Burris (D-IL), the Small Business Fairness and Regulatory Transparency Amendment (S. Amdt. 3883) was included in the final bill.

This provision ensures that the newly created Consumer Financial Protection Bureau will take a special look at rules which may impose significant costs on small business. It will also require the agency to prioritize minimizing the burden on small business during the drafting of new rules and regulations while also preserving consumer protections.

The self-employed and micro-business (those with fewer than 10 employees) have been vocal in the past three years about the actions of government, the financial services industry and consumers which led to the collapse of the economy. The NASE has consistently heard from members that, while oversight and accountability are essential to a healthy economy, increasing federal bureaucracy can increase the cost of doing business and impact small business access to credit. Micro-businesses strongly supported a balanced approach to regulating the financial service sector.

“The passage of the Restoring American Financial Security Act, with the inclusion of the Small Business Fairness and Regulatory Transparency Amendment, will help create a climate of accountability for Wall Street and ensure that small business consumers receive the protections they need while also protecting them from overly burdensome regulations,” remarked Kristie Arslan. “As Congress takes the final step towards financial reform, we urge legislators to keep these small business safeguards in the final bill.”

To read additional commentary on small business policy, visit the NASE Staff Blog.

About the NASE
The National Association for the Self-Employed (NASE) is the nation’s leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) non-profit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association’s web site at www.nase.org

Nation’s Job-Creators Largely Oppose Health Reform Legislation

NASE — Friday, 19 March, 2010 16:32:58 EST

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander, NASEtweets

Bottom Line Cost Savings Most Important To The Self-Employed

Washington, D.C., March 19, 2010 – Companies with fewer than 10 employees – micro-businesses – are asking Congress to keep in mind that a big part of being able to create jobs and grow their companies depends largely on their ability to pay for health coverage. Self-employed business owners say that access to health care and choice in providers/benefits is less important to their businesses than cost; Pocketbook-watching factors such as stable premium costs and inclusive coverage not negated by health condition or age is of most importance to the nation’s smallest businesses. With the clock ticking down to a final vote in Congress on health reform legislation, the online poll conducted by the National Association for the Self-Employed (NASE) received over 1,200 responses regarding the concerns of the self-employed with health reform.

Survey Highlights:

• Lowering health premium costs and ensuring they do not continue to increase (42%) and reforming the insurance market so individuals cannot be denied coverage due to their health status or age (24%) were cited as MOST important to their businesses.

• Respondents cited increasing choice in health plans and benefit options (32%) and ensuring that the uninsured have access to health coverage (29%) as factors in the health reform package that were LEAST important to their business.

• Three in five micro-businesses say they do not support the current health care proposal. Twenty-eight percent support the proposal and 12% say they are undecided.

• Of those who said they did not support the current proposal, 58% say they do not want Government to become too involved with health care. Nearly one-quarter (23%) say the plan is too costly and will increase the deficit.

Responses from micro-businesses:

• “The insurance companies are currently enjoying a monopoly. Unless we introduce competition, costs will continue to escalate.”

• “All of the issues listed in the survey are important! Costs for self-employed business people are outrageous with little options available to us.”

• “Yes, we need health care reform but the massive plan they are trying to ram through now is filled with sweetheart deals, other legislation not related to health care, double talk and union deals. It needs to be scrapped and a new bill drawn up.”

• “I am not entirely happy with the current bill as I would have preferred a public option, but I think that the idea that everyone needs to have insurance and that one cannot be denied due to past history is crucial.”

• “[Policymakers] have not addressed how everybody pays their share of insurance.”

Full survey results are available online on the NASE’s Research & Statistics web page.

Methodology:
Posted on the NASE Web site, the survey was available for members and other small business owners to take in March. Over 1,200 small business owners opted-in to the online survey and respondents were prohibited from taking it more than once.

Kristie Arslan is available for more information about this poll and the self-employed perspective on health reform. Please contact Kristin Oberlander by phone at 202-466-2100 or by email at koberlander@nase.org with additional questions or to schedule an interview.

Consumer Protection Legislation Clears First Hurdle

NASE — Friday, 23 October, 2009 12:09:38 EST

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

Consumer Protection Legislation Clears First Hurdle

House Committee Passes Key Component to President Obama’s Financial Regulatory Reform Effort

Washington, D.C., October 22, 2009 -- The Consumer Financial Protection Agency Act of 2009 (H.R. 3126), which includes the creation of a new federal agency central to President Obama’s financial regulatory reform initiative, was approved by the House Financial Services Committee today.

In reaction to the housing crisis and the collapse of our financial markets, the bill creates the Consumer Financial Protection Agency (CFPA) to protect consumers from risky and deceptive practices in the financial marketplace, while also protecting our country from another economic debacle. The CFPA would oversee and regulate consumer financial products such as credit cards and mortgages.

According to NASE’s November 2008 Housing & Economic Survey, 49 percent of the self-employed used various forms of personal financing (mortgage, home equity, credit card, etc.) to start their businesses. Credit card debt accounted for 28 percent of this total debt. Close to 70 percent of survey respondents indicated that they used various forms of debt (mortgage, home equity, credit card, etc.) to obtain additional cash for their business operations, of which 39 percent was credit card debt.

Micro-businesses and the self-employed have been hit particularly hard during this financial crisis. Their reliance on credit cards, lines of credit and home equity loans to help with the daily operating costs of their business has left the self-employed vulnerable to unpleasant industry practices. Furthermore, due to slow sales and a cash flow crunch resulting from the credit freeze and plummeting home values, some micro-business owners have been forced to close their doors.

“During the financial crisis, business definitely declined for our transmission shop. We had used credit cards to pay bills. Our credit card company cancelled these lines of credit; my husband and I each had a card. Once our lease was up we had to sell our business to our landlord at a huge loss,” commented NASE Member Jere Smith, owner of Lancelot Inc. in Liberty, Mo.

The National Association for the Self-Employed supports creating a transparent and fair financial marketplace with increased consumer protections and consumer education. While NASE Members support efforts to improve financial regulatory reform, the micro-business community wants assurances that small business will have a voice in the regulatory process of the new Consumer Financial Protection Agency, as well as existing regulatory agencies. Regulators must be mindful that new rules do not have the unintended consequence of restricting credit further, or making it more costly for micro-businesses to access financing options.

“Our nations’ smallest businesses have seen the value of their home drop, their retirement savings shrink and their access to credit freeze. Furthermore, they have seen their tax dollars go to shore up the same big institutions that created this financial mess. They want assurances that our government regulators won’t be caught sleeping on the job again,” commented Kristie Arslan, executive director of the NASE.

Allowing Tax Incentives To Expire Will Hurt Small Firms

NASE — Wednesday, 30 September, 2009 14:00:00 EST

NASE Asks Legislators To Help the Recovery by Helping Small Business

Although originally enacted to prevent those Americans with the most resources at their disposal from avoiding taxes, the Alternative Minimum Tax (AMT) did not take into account the effects of inflation, the growth of earnings and expenses. Congress has adjusted the exemption amount over time to keep up with inflation, but that adjustment is now scheduled to end, which would result in an increased tax burden for many small business owners and families.

The NASE’s National Tax Advisor, Keith Hall, testified before the House Committee on Small Business today about how allowing the AMT and other tax incentives to expire would cause a direct and unintended tax increase on the small business sector that many are relying on to continue the economic recovery. Hall suggested that at a minimum, the exemption amounts should not be allowed to decrease, but should be increased annually based on an inflation index in order to continue the recovery.

“Allowing the increase in the exemption amount to ‘sunset’ would directly increase the tax burden for many Americans past their ‘fair share’ simply because they may live in a state with a higher than average state income tax. Others would pay more than their fair share simply because they have a larger than average family. Others would pay more than their fair share simply because they have higher mortgage interest due to a second lien necessary to fund their business or a child’s education. Clearly, none of these scenarios was the intent of the AMT from so many years ago,” noted Hall.

The NASE supports the extension of expiring tax incentives including the AMT exemption, accelerated depreciation, sales tax deductions, first time home owner buyer credit and others. The key point for supporting the extension of tax incentives is to support extending the economic recovery. The NASE believes in the long term impact that small business will have on the overall economy. Promoting investment, encouraging new job development and keeping the playing field level for all taxpayers is essential to long term recovery.

Read the full text of Keith Hall's testimony here.
Watch highlights from Keith Hall's testimony on YouTube.

Track the progress of current legislation that would help micro-businesses and the self-employed by visiting advocacy.NASE.org.

NASE Asks Senators To Lower Health Costs For Small Business

NASE — Friday, 10 July, 2009 09:15:00 EST

The United States Senate Committee on Small Business and Entrepreneurship recently held a roundtable to discuss the impact of various health reform proposals on small businesses. Kristie Arslan, Executive Director of the Legislative Office for the National Association for the Self-Employed (NASE), participated in the roundtable along with Senator Ron Wyden (D-Ore.) and other small business owners and advocates.

Arslan spoke about how NASE Members consistently cite health care as the top issue affecting their business, and asked Congress to help the self-employed with the high health care costs that are damaging their businesses. Arslan mentioned the results of a June 2009 survey by the NASE in which approximately 60 percent of respondents chose cost containment as the most important aspect of reform for them and their business.

“Our nations’ smallest businesses not only want health reform but in fact, they need reform in order for their businesses to remain viable,” she commented. “Improving affordability and stability of premiums as well as providing for sustainable cost containment in the overall healthcare system must be a top reform priority.”

Both Small Business Committee Chair Mary Landrieu (D-La.), and Ranking Member Olympia J. Snowe (R-Maine), acknowledged the high costs that small business owners face to provide health care for themselves and their employees.

“The cost of providing coverage is rising at an unpredictable and unsustainable rate, making it difficult for small business owners to secure stable healthcare for their employees,” said Sen. Landrieu. “Simply put, we need to reform our health care system to provide small businesses the opportunity to grow and prosper. The cost of doing nothing is just too great.”

“Small business health reform must be a central component to our broader reform efforts, and that is why I am working diligently, as a senior member of the Senate Finance Committee, to craft bipartisan, comprehensive health care reform legislation that will make health care more affordable and universal for small businesses and the self-employed,” added Sen. Snowe.

Watch archived footage of the roundtable here.

View comments submitted on behalf of the self-employed by Executive Director Kristie Arslan.

NASE Supports Small Business Legislation Introduced By Sen. Merkley

NASE — Wednesday, 8 July, 2009 11:01:00 EST

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

NASE Supports Small Business Legislation Introduced By Sen. Merkley

Bill Would Assist Small Businesses With Start-Up Expenses

Washington, D.C., July 8, 2009 -- Senator Jeff Merkley (D-Ore.) has introduced legislation, endorsed by the NASE, to encourage job creation and support small business owners by cutting taxes for the start-up costs of small businesses.

The Small Business Jump Start Act of 2009 (S. 1402) is cosponsored by Senator Lamar Alexander (R-Tenn.) and is also endorsed by the U.S. Chamber of Commerce and the National Federation of Independent Businesses.

“In this difficult economic time it is imperative that we help our nation’s newest entrepreneurs start their business off right,” said Kristie Arslan, Executive Director of the NASE’s Legislative Office. “The Small Business Jump Start Act of 2009 will greatly assist start-up ventures at the most critical time – their first year of business – and give them the financial boost they need to succeed.”

The legislation will increase the small business start-up expenses deduction from $5,000 to $10,000 and increase the threshold for the deduction phase-out from $50,000 to $60,000.

“As our economy begins to recover, small businesses will lead the way,” Sen. Merkley commented. “One of the best ways we can encourage job growth is to help small businesses through their first year. For the majority of small business owners, the first year is the toughest. New entrepreneurs must hire employees, attract clients, start up administrative systems, and find a suitable facility. By doubling the deduction for start-up costs, this new legislation will encourage the job growth that will get our economy moving again.”

The legislation would increase the number of businesses who can claim the entire $10,000 deduction in the first year. If a new small business has over $60,000 in expenses, the first-year deduction is phased out on a dollar for dollar basis. For example, if a start-up company has $61,000 in expenses, they can take a $9,000 deduction in their first year with the remaining $1,000 spread out over the next 15 years, just as in current law.

NASE Asks Legislators To Remember Self-Employed

NASE — Thursday, 25 June, 2009 15:28:09 EST

The NASE understands how important affordable and quality health care is for the self-employed, which is why we asked legislators to remember America’s self-employed in their efforts to reform the health care system.

See our ad in Roll Call, the newspaper of Capitol Hill.

Micro-Businesses Offer Strong Opinions On Health Reform Proposals

NASE — Wednesday, 24 June, 2009 01:00:00 EST

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

Micro-Businesses Offer Strong Opinions On Health Reform Proposals

Businesses Support Private Insurance Over Federal Plan, Oppose Mandates

Washington, D.C., June 24, 2009 -- The nation’s entrepreneurs are ready for major changes to the American health care system, but are asking the federal government to implement various proposals to help them cope with the costs. When asked for the most important component of health reform, 60 percent of micro-business owners cited cost containment, even over access and choice. Nearly 2,000 micro-businesses, including members of the National Association for the Self-Employed (NASE), took part in this national online survey of their opinions on current health care reform proposals.

Most micro-businesses, companies with 10 or fewer employees, are closely following the health care debate. When asked how many had heard the term “public option” in relation to discussions surrounding reform, two-thirds indicated they were familiar with the term, and of those, 71 percent identified it correctly as “a health insurance program run by the government and open to anyone in need of health coverage.”

Most entrepreneurs are strongly opposed to a “public option.” Rather, they prefer a free market approach, wherein business owners can work with private insurance carriers instead of purchasing a federally managed plan. Seventy-one percent said that they would choose a private insurer when given the choice to purchase the exact same health insurance policy at the exact same price from either a private insurer or the federal government.

“Micro-businesses are distrustful of the federal government and its ability to manage health care,” commented Kristie Arslan, Executive Director of NASE’s Legislative Offices. “They continue to bear witness to how the government creates inequities in the tax code, increases red tape and poorly manages their budget. If the self-employed were to run their business in the same manner as the federal government, these entrepreneurs would have been out of business a long time ago. Likewise, business owners do not feel that they should put their health care in the government’s hands via a public health plan.”

When asked about various market reforms, micro-businesses were most supportive of these choices:

• Create an exchange or marketplace to facilitate the purchase of quality, affordable health coverage by allowing small businesses and individuals to easily compare and purchase the plans of their choice;

• Require health insurance carriers to provide health insurance to all those who apply regardless of their health status;

• Allow small businesses to group together via associations or organizations to purchase health insurance; and

• Create non-profit insurance cooperatives across the country, organized by the government but owned by the cooperative members, in which small businesses and uninsured individuals can purchase health coverage.

As health care costs continue to rise and the current system lacks equitable tax treatment of health care costs for the self-employed, micro-businesses are stronger than ever in their opposition to federally imposed mandates. Respondents were more amenable to the idea of mandates if they received a considerable subsidy, such as a health tax credit, that would help them defray costs.

According to Kristie Arslan, “the ailing economy makes it difficult for this segment of the business population to survive an employer or individual mandate. However, the micro-business community is willing to compromise and accept a mandate, if and only if it is accompanied by meaningful financial assistance.”

Other key findings:

• The top two health tax proposals favored by micro-businesses are providing tax credits to businesses and the self-employed to offset health care costs and reforming the tax treatment of health coverage so that, regardless of whether health insurance is purchased individually or accessed through an employer, the worker receives the same tax benefits.

• The majority of respondents were neutral on a recent suggestion of a cap on the employer exclusion. However, there were quite a few who strongly opposed such a cap.

• Half of all respondents strongly opposed the recommendation to make taxable money utilized from Health Reimbursement Arrangements (HRAs) and Flexible Spending Accounts (FSAs) to pay for health costs. Currently these funds are tax-free. • When asked about a small business exemption to coverage mandates, 38 percent felt that using the number of employees as a benchmark was the right approach to determine the exemption. However, a number of respondents chose “Other” and indicated that an exemption should be made based on a combination of factors, such as number of employees and revenue.

Many survey respondents gave specific comments on the public option, mandates and other issues impacting the health care reform conversation. Here is a sample of perspectives received:

I do not think the government should become an insurer. I do think the government should regulate private insurers more.

I do not agree with the government mandating how businesses should run. They have been unsuccessful with their own budgets. What qualifies them to stipulate this to successful businesses?

The federal government would be too large and not specific enough to meet my individual needs. Plus, I believe strongly that the quality of care provided by the government would be worse.

Employers should not provide coverage. Let individuals subscribe to whatever plan they want and let employees take home money to purchase insurance instead of the employer purchasing for it for them. Individual needs are different.

I do not think the government should be able to pick and choose the businesses that are required to carry health insurance for their workers.

The federal government is doing a poor job with the health plans (i.e. Medicare and Medicaid) it controls now. Why would it be good to give them expanded control?

I would prefer that the government not be involved in providing my health care. However, I also cannot continue to provide health insurance on my own through private insurers if they continue to increase premiums at the current rate. If I could not afford private insurance, I would hope that there would be some other option rather than no insurance. If that is a government policy, then so be it.

Full survey results online at the NASE Research page.

NASE Attends Obama Discussion On Small Business And Economy

NASE — Friday, 22 May, 2009 13:00:00 EST

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

Running a Business "Impressive In Any Year - But It's Especially Impressive This Year," President Say

Washington, D.C., May 22, 2009 -- President Barack Obama recently met with the National Association for the Self-Employed (NASE) and the National Small Business Award winners to discuss how the Administration's economic recovery efforts will benefit entrepreneurs. President Obama implemented initiatives earlier this year to make small business lending more attractive to financial institutions that have tightened their belt on credit and loans since the financial crisis.

Earlier this year, the Administration gave a shot in the arm to financial institutions and borrowers by raising guarantees on SBA loans to 90 percent and eliminating various borrower and lender fees. The President's budget proposal reduces the capital gains tax for investments in small or startup businesses and offers additional small business tax cuts.

"The place where you set up shop often isn't just your business address, but it's also your hometown, and sometimes it's your home. And I know what you do to give back -- sponsoring sports leagues and service projects, serving on boards, donating to charities, mentoring other small business owners to help them be as successful as you are," the President said. "So with all that you do for this nation, I think our nation's government should be there to support you -- to help you grow and expand and succeed."

The Administration has said that passing health care reform this year remains a top priority, since it would make coverage more affordable for all Americans and, especially, small business. Based on the NASE's 2008 health study, only one in five micro-businesses nationwide are currently providing employer-based coverage to full-time employees. The business owners cite the high cost of obtaining coverage as a major factor in that decision. Read remarks from the White House ceremony here.

"We look forward to assisting the President in his efforts to make doing business less costly for the nation's 22 million self-employed business owners," said Kristie Arslan, executive director of the NASE legislative office. "In particular, the NASE supports attempts to offer more affordable options for health care."

The NASE advocates for a self-employment tax deduction on health insurance premiums, health care tax credits and the expanded eligibility requirements that would allow the self-employed to participate in health reimbursement arrangements (HRAs). These small changes would drastically increase health care options for micro-businesses and the self-employed.

The NASE also continues to promote the development of tax compliance education programs, as well as more straightforward tax regulation in order to make filing tax forms less burdensome. In a March online member poll conducted by the NASE, micro-businesses indicated that simplification of the current tax system, including the minimization of tax forms and creation of easy-to-understand instructions, was a top desire for entrepreneurs.

Visit the Advocacy Web site to learn more about the NASE's legislative priorities.

Consumer Credit Card Protections Bill Passes House, Heads To Senate

NASE — Wednesday, 6 May, 2009 13:00:00 EST

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

Consumer Credit Card Protections Bill Passes House, Heads To Senate

Washington, D.C., May 6, 2009 -- The Government Accountability Office (GAO) reports that one-fifth of those carrying credit card debt pay an interest rate above 20 percent. The prevalence of credit cards with high interest rates and fees has prompted lawmakers to pass legislation that could affect the credit card statements of millions of Americans.

In a bipartisan vote, the U.S. House of Representatives has approved the Credit Cardholders' Bill of Rights (H.R. 627), which puts tougher restrictions on the ability of credit card companies to increase their interest rates and use practices such as double-cycle billing. The bill also requires that companies notify consumers 45 days before a rate increase and explain at that time how the change will affect an existing balance.

"This is one more step in our efforts to assist responsible, hardworking Americans who should not be subjected to these practices at any time, much less during a recession," said House Majority Leader Steny H. Hoyer (MD). "As we work to protect consumers, I look forward to working with the Senate to get this legislation to the President's desk for a signature as soon as possible."

The measure is set to be debated in the Senate this week, where a stricter version drastically restricts the ability of card companies to raise rates on late-payers or those with shaky credit histories. At the request of the White House, the following measures – which are already included in the Senate bill – were included in the House legislation:

- Requirement that payments must first be applied to the debt with the highest interest rate;
- Mandatory annual review by the Federal Reserve to assess the effects of the bill on interest rates, annual fees and denial of new credit cards;
- On each bill, companies must disclose the long-term costs of paying only the minimum balance;
- Promotional rates on new cards must be valid for a minimum of six months;
- Terms of the credit card agreement are to be posted on the card issuer's Web site.

The National Association for the Self-Employed (NASE) commends the House of Representatives on the passage of this important consumer protections bill. Unfortunately, the self-employed and micro-business owners who use small-business credit cards are not shielded in the House-passed legislation. It is the hope of the NASE that language will be included in the Senate version to extend these safeguards.

Ramped Up Task Force Could Focus On Micro-Business Tax Compliance

NASE — Wednesday, 1 April, 2009 01:00:00 EST

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

Lawmakers Have Blamed Small Businesses For Large Portion Of Uncollected Taxes

Washington, D.C., April 1, 2009 -- The Obama Administration recently announced its plans to step up the search for noncompliant taxpayers as one method for offsetting a massive budget designed to help shore up economic losses for the nation. A newly formed Task Force on Tax Reform will concentrate on the tax gap – a $300 billion difference between what the Internal Revenue Service is owed and what it collects.

"The Task Force on Tax Reform that will be formed...will be examining ways of being even more aggressive on reducing the tax gap, which could provide funding for tax provisions, including an extension of the Making Work Pay tax credit," said Peter Orzag, Office of Management and Budget Director.

In the past, lawmakers have pointed to underreporting by the self-employed as a significant contributor to the tax gap, a claim the NASE has worked hard to refute. The association has countered that an effective strategy to increase tax compliance should include overall simplification of the tax code, the elimination of issues that are inequitable to entrepreneurs, and greater access to reliable taxpayer education and outreach, not just an increase in enforcement activities.

Under the Bush Administration and the previous Congress, tax gap proposals placed an undue burden on micro-businesses. Those included imposing withholding on non-employee payments, specifically payments made to independent contractors; requiring information reporting on all payments of $600 or more to corporations; and demanding businesses that utilize contractors to obtain and verify an accurate Taxpayer Identification Number (TIN) for those contractors receiving payments of $600 or more.

Kristie Arslan, Executive Director of the NASE's Legislative Offices, testified before the House Committee on Small Business last year against the annual reporting of electronic payment transactions to the IRS. Although some have supported this measure as a solution to the tax gap, the NASE is opposed to this legislation because of the increased tax regulation it places on small businesses and because it likely would not boost tax compliance.

While the NASE believes the IRS should be able to collect all the money owed, increasing the burden on micro-businesses is not the most effective way to increase compliance. A strategy to increase tax compliance should include overall simplification of tax code, the elimination of issues that are inequitable to entrepreneurs, and greater access to reliable taxpayer education and outreach.

Visit the NASE in Action page to read recommendations on how to increase tax compliance without burying the nation's entrepreneurs under burdensome regulations.

NASE Lauds Home Office Deduction Simplification Act

NASE — Friday, 20 March, 2009 01:00:00 EST

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

Schedule C Filers Would Receive $1,500 Standard Deduction

Washington, D.C., March 20, 2009 -- Business owners who work out of an office in their homes could save an additional $1,500 on their taxes next year. Legislation introduced by Congressman Kurt Schrader (D-OR), Chairman of the Finance and Tax Subcommittee of the House Small Business Committee, and Congressman John M. McHugh (R- N.Y.) would make it easier for home businesses to deduct office expenses by offering a $1,500 standard deduction to eligible taxpayers. The Home Office Deduction Simplification Act (H.R. 1509) would also require that the amount be indexed for inflation.

"We need to do everything in our power to make small businesses a central part of our economic recovery," said Schrader. "This bill will streamline the tax process that often puts an undue burden on entrepreneurship. The increased use of the home office deduction will also allow small businesses to put these savings back into the economy. That means hiring more workers, expanding their businesses, and helping rebuild our economy.

Many business owners cite complexity of the criteria to qualify as too cumbersome to follow; others also cite a fear being audited as their reason to avoid the deduction. The NASE has advocated for the simplification of the tax code for many years; three in five micro-business owners had never utilized the current home office deduction said the option of a standard deduction would encourage them to take it.

"The ability to choose a standard deduction would remove the top barriers for home business owners – being confused by the qualification criteria and being scared they'll be red-flagged for an audit," said Kristie Darien, executive director of the NASE legislative office. "Congress has taken an important step with this legislation that allows qualifying home-based businesses to more easily employ this tax benefit. Too many sole proprietors have shied away from taking the home office deduction despite being eligible for it."

The option of a $1,500 standard deduction would not preclude taxpayers currently qualifying for the home office deduction from continuing to itemize their expenses should they choose. The Home Office Deduction Simplification Act would simply offer a taxpayer-friendly way to take the deduction. Additionally, if passed by Congress, it would significantly minimize the paperwork and time spent on tax preparation for entrepreneurs managing their business out of their home.

House Members Work For Tax Fairness For Self-Employed

NASE — Wednesday, 18 March, 2009 01:00:00 EST

For Immediate Release:

Contact:

Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: koberlander

Bill Would End FICA Tax On Health Insurance Premiums, Reducing Cost Of Health Care for Self-Employed

Washington, D.C., March 18, 2009 -- Recently introduced federal legislation would level the playing field for 21 million self-employed Americans by ending a significant double-digit disparity in taxes paid on health insurance that has contributed to the growing health care crisis. The Equity for Our Nation's Self-Employed Act (H.R. 1470), introduced in the House of Representatives by Reps. Wally Herger (R-CA), Ron Kind (D-WI), Suzanne M. Kosmas (D-Fla.) and David G. Reichert (R-WA) would eliminate an inequity in the tax code that inhibits the self-employed from receiving a full deduction for health insurance costs.

"We ought to be encouraging sole proprietors, not penalizing them. Yet the tax code currently does just that," said R. Michael Beene, Senior Health Policy Expert and General Counsel for the NASE. "This bill puts the self-employed on equal footing with other American businesses, addresses an area that has too many uninsured individuals and families and rights a wrong at a time when we most need it. On behalf of the NASE and its 200,000 members we offer our full support."

In addition to leveling the playing field for our nation's smallest businesses, this legislation would assist in making health care more affordable for millions of self-employed Americans who currently make up a substantial number of the working uninsured. Today, more than 60 percent of the 47 million uninsured Americans are from families working for a small business or headed by a self-employed individual. In a 2008 NASE study, more than 65% of micro-businesses cite cost as the single most significant barrier to offering health insurance to employees.

Payment of Self-Employment Tax on Premiums

The tax code technicality resulting in the health-care cost inequality lies in the payment of self-employment tax on health insurance premiums. While corporations are able to deduct health insurance premiums as a business expense and to forego FICA (Social Security and Medicare) taxes on these expenses, sole proprietors are unable to deduct premiums and are required to pay an additional 15.3 percent self-employment tax on these costs.

Studies have indicated that on average in the United States a self-employed individual pays $12,106 annually in health insurance premiums for family coverage. Since owners are unable to deduct their premiums as a business expense, as larger businesses do, they have a higher self-employment (FICA) tax liability. In this case a sole proprietor would be paying an additional $1,852.22 (15.3 percent) in taxes.

NASE Member John Rutledge is from Ruther Glen, Virginia and owns a real estate title research company. He pays an additional $1,652.00 in taxes annually on his health costs and can think of many other uses for the money. He remarks, "I could hire an office assistant to assist with some of the day-to-day administrative functions of the business or an IT professional to guide our expansion. We could easily double our outcome with this help."

Curious about previous legislation on this issue or how the self-employment tax is calculated? Visit NASE Advocacy online.