By Mike Lillis
Business owners would be allowed to deduct their health insurance costs when crunching this year's self-employment taxes, according to the sweeping business bill introduced by Democrats Tuesday.
Current law prohibits business owners from deducting family health insurance costs when calculating their self-employment taxes. The Democrats' legislation, sponsored by Sens. Max Baucus (Mont.), chairman of the Finance Committee, and Mary Landrieu (D-La.), would eliminate that prohibition for insurance purchased in 2010.
The provision is estimated to cost $1.96 billion over 10 years.
"Small businesses are the engine of our economy and need to be a critical focus of our job-creation efforts," Baucus said in introducing the bill Tuesday. "Helping small businesses helps get Americans back to work."