Want to Deduct Health Care Premiums Off Your Taxes?
What Proposed Legislation Means to You

Exciting new legislation has just been introduced in the Senate to make health care much more affordable for our entrepreneurs and their families.

The “Equity for Our Nation’s Self-Employed Act of 2004,” S. 2433, will go a long way to even the health care playing field for small businesses and their employees. S.2433 is a companion bill to H.R.1873 in the House of Representatives.

S. 2433, introduced by Senator Jeff Bingaman (D-NM) and Senator Craig Thomas (R-WY), will offer the strongest remedy in correcting current health care inequities. The legislation would level the playing field for the self-employed by allowing them to fully deduct health coverage costs.

The facts speak for themselves: Sole proprietors, partners and S corporation owners pay, on average, nearly 20 percent more for health insurance than larger corporations do. On top of that, small-business owners also pay a 15.3 percent “self-employment tax” on all of their health care premiums. The pending legislation would enable the self-employed to deduct their health care premiums as a normal business expense, as larger corporations are already allowed to do.

Even more alarmingly, 70 percent of small businesses with fewer than ten employees don’t even offer health insurance because the costs have traditionally been so high. Without offering a health care plan, small-business owners often have a difficult time attracting and retaining top employees.

The Alliance, along with The SBLC will be working diligently in the coming weeks to gain support for this important legislation and will continue to improve health care and make it more affordable for all of our members.

The Alliance encourages you to take action today and voice your support for this important legislation. Visit the Advocacy area at www.AffordableServices.org for links to the Senate and Congressional Web sites. While you’re there, don’t forget to check out the Alliance Advocacy Report for more news on the issues that affect you.