Affordable health care coverage is among the top concerns not just for Rhode Island’s small business people, but for business owners nationwide.
According to the Employee Benefit Research Institute, of the 12.5 million Americans who were self-employed in 1998, 3.1 million, or almost 25 percent, were uninsured.
U.S. Congressman Jim Langevin (D-R.I.) is a cosponsor of H.R. 154, which would immediately increase the self-employed health insurance deduction to a full 100 percent.
"This targeted tax relief measure would help expand coverage to those who might not otherwise be able to afford the out-of-pocket costs for individual health plans," said Langevin.
Langevin also cited the importance of establishing the Small Business Committee – of which he is a member – as a watchdog of federal regulations to ensure small businesses are not disproportionately burdened.
Just last month, the House passed the "Small Business Paperwork Relief Act of 2002" which will provide assistance for small businesses to cope with government regulations and paperwork requirements.
"Reducing the mountain of paperwork government regulators require will ease the burden on small businesses that may lack the manpower and capital to comply," said Bruce Josten, executive vice president of the U.S. Chamber of Commerce. "This bill is a great first step in requiring agencies to provide needed relief from spiraling federal mandates."
U.S. businesses spent approximately 7 billion hours filling out federal forms in 1998, according to the Office of Management and Budget (OMB). The cost associated with this paperwork burden is estimated at $229 billion and that does not take into account state and local requirements.
Tax burdens
Barbara Manning, the new Small Business Administration’s regional advocate for New England, said it is important to make sure that businesspeople who are attracted to the region’s wealth of resources are able to afford to stay.
"The issue that we’re looking at, typically, are taxes," she said. "Massachusetts is unique in that the cost of living is so high for them."
The debate surrounding the death tax will continue. Reaction from the U.S. Chamber of Commerce was bitter last month, when the Senate – in a vote just short of the 60 needed – refused to follow House lawmakers, who had voted to permanently repeal the death tax, also known as the estate tax.
"The Senate has missed a golden opportunity to provide tax relief for America’s small businesses, farmers and families," said Thomas Donohue, chamber president and chief executive officer. "It will not die here – we will continue the fight until common sense wins. Death should not be a taxable event."
Small business owners have consistently identified permanent repeal of the estate tax as one of their most pressing concerns. The chamber initiated a large grassroots push to repeal the death tax over the past year and encouraged tens of thousands of its members to write their Representatives and Senators.
The tax is being phased out over the next 10 years as part of President Bush’s $1.3 trillion tax cut plan.
