Recent Updates to Tax Code Haven't Corrected Unfairness for Small Business
While small businesses are able to deduct the costs of health care from their annual income, the code still prevents entrepreneurs from deducting these costs from the wage base for self-employment taxes (Social Security and Medicare). This means entrepreneurs are treated differently than Americans who receive their health care from a corporation -- they are forced to pay additional taxes simply because they are self-employed. NFIB will continue to fight to ensure that health-care costs truly are fully deductible for self-employed individuals, as they are for other American workers.
According to an NFIB Member Ballot, nearly 90 percent of NFIB members believe individuals should be able to deduct 100 percent of the cost of health-insurance premiums from their taxes. This may allow some of the nearly 46 million uninsured to purchase health insurance, putting them in control of their own health care.
