10/24/2007
Bill would allow self-employed to deduct health-care costs
A bill to allow self-employed individuals to deduct any health-care costs from payroll taxes was recently introduced in the House. We support H.R. 3660, the Equity for Our Nation's Self-Employed Act of 2007, as it will benefit many small-business owners.
We're a member of the Supporting Equity for Our Nation's Self-Employed coalition, a group of small businesses and trade organizations who believe the self-employed deserve a fair and level playing field in order to start, grow and achieve success in their business. As part of this coalition, we will continue to work with key lawmakers to push H.R. 3660 through the House.
Corporations are currently allowed to deduct 100 percent of what they spend on health care from their income and FICA taxes, but self-employed individuals are barred from doing so. As a result, they end up paying more than 15 percent more tax on their premiums, and are essentially penalized because they work for themselves instead of corporate America.
In a 2007 NFIB survey on health care, 80 percent of our members expressed support for equalizing the tax benefits for the purchase of health insurance between those who have employer-provided health insurance and those who purchase it individually. The Equity for Our Nation's Self-Employed Act of 2007 would level the playing field for self-employed individuals, providing incentives to purchase health insurance instead of punishing them for being an entrepreneur.
The Senate is also expected to introduce similar legislation later this year. Stay tuned to NFIB.com/Issues for development on this bill.
