It is time for Congress to get serious about helping America’s smallest businesses. On behalf Sydni and the 22 million other self-employed job creators in America, I’m asking Congress to use their 13 workdays wisely:
1. Pass legislation to make a full deduction of health insurance premiums for the self-employed permanent. This fix will ensure that self-employed Americans like Sydni will no longer pay annually, on average, nearly $1,800 more in taxes than other business owners. The National Association for the Self-Employed has repeatedly called on the House to schedule a hearing around the Small Business Tax Relief Act, which directly addresses this issue. But so far, they’ve not found the time to schedule it.
2. Address the scheduled individual tax rate increase before the election. America’s self-employed cannot afford to have their tax rate increase, as is currently scheduled to happen at the beginning of 2013. Self-employed business owners making between $70,700 and $388,350 will see their tax rate increase by 3 percent under current plans. Self-employed business owners making over $388,350 will see their tax rate increase over 4.5 percent.
3. Pass legislation to make the tax deduction for startup business expenses permanent, instead of letting the provision expire at the end of this year. When provisions expire on a yearly basis, it’s virtually impossible for a business owner to plan for the next year and grow their business.
4. Pass legislation to simplify the home office deduction for home-based businesses, the working arrangement preferred by many self-employed, by allowing the option of a standard $1,500 deduction for home office expenses.
True legislative reform can make a real impact on America’s smallest businesses, like Sydni’s. Congress has 13 days to do this: will they take real legislative action or just name more post offices?
Arslan is the president and CEO of the National Association for the Self-Employed, an organization which represents America’s 22 million self-employed and micro-business owners.