11/ 30/ 2007
The Equity for Our Nation's Self-Employed Act (H.R. 3660) was recently introduced in the U.S. House of Representatives by Reps. Ron Kind and Wally Herger to help put self-employed businesses on equal footing with large corporations by allowing health-insurance premiums to be deducted from both their income and payroll taxes.
Under current law, corporations may deduct health-insurance premiums as a business expense and forgo payroll taxes on these costs. The self-employed, however, are the only segment of the business population unable to take this deduction and, as a result, pay an additional 15.3 percent tax on their premiums. H.R. 3660 would correct this inequity and would be a critical step in helping entrepreneurs gain access to more affordable health-care options.
We support this bipartisan legislation, because it directly addresses the needs of our nation's self-employed businesses.
"Business owners shouldn't be punished for their entrepreneurial spirit and drive," says Dan Danner, NFIB's executive vice president.
"To treat entrepreneurs differently than those who receive their health-care coverage from a corporation punishes them simply because they are self-employed. Fixing this inequality in the tax code is a critical step in helping entrepreneurs gain access to more affordable health-care options."
H.R. 3660 was referred to the House Ways and Means Committee. Similar legislation is expected to be introduced soon in the U.S. Senate.
