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Updated: Help pass self-employed tax savings bill - PPA Today

Updated: Help pass self-employed tax savings bill

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Professional Photographers of America (PPA) urges all members, photographers and small business owners to ask their U.S. Senators and Congressional Representatives to support The Equity for Our Nation’s Self-Employed Act (S. 2239/H.R. 3660). Senator Jeff Bingaman (D-NM) and Senator Orrin Hatch (R-UT) have co-sponsored S. 2239 in the Senate, while H.R. 3660 is co-sponsored by Congressman Ron Kind (D-WI 3rd) and Congressman Wally Herger (R-CA 2nd).


Self-employed individuals, including self-employed photographers, pay for health insurance costs with after-payroll tax dollars.  This means that the money they use to buy health insurance for themselves and their families is subject to an additional 15.3 percent tax that no other employers or employees must pay. 


All business entities other than sole-proprietors receive a deduction for health insurance premiums as an ordinary and necessary business expense for all employees, including owners.  Employees and the owner pay for their health insurance premiums pre-tax; therefore, they are not subject to FICA taxes. However, sole-proprietors (Schedule C filers) do not receive this benefit. Their premiums are not paid with pre-tax dollars and are exposed to self-employment tax. Again, sole proprietors are the only business entity that does not receive a full deduction of health care costs. 


Health insurance premiums average almost $12,000 per year for family coverage.  It is estimated that S.2239 and HR 3660 will save every self-employed individual about $1700 annually.


As you can see, both S. 2239 and HR 3660 are important pieces of legislation and represent a step in the right direction to lower the already high tax burden carried by small businesses and the self-employed.  We encourage all photographers (regardless of PPA membership), their employees and other small business owners to contact their Congressional Representatives, by visiting the Contact Congress page.  Although we have provided an "as is" sample e-mail, we strongly encourage you to personalize your message if at all possible; we know from our visits to the Hill that personal messages carry extra weight.


For more information on this important piece of legislation visit, www.setaxequity.org. If you have specific questions about this legislation, feel free to contact the PPA Government Affairs Department at mmatthews@ppa.com.

14 Comments

please pass self-employed tax savings bill!

Please value Sole Proprietors with this bill; I can say from personal experience that you will see a lot of this money funneled back into community building and not just the proprietor's property.

Dear Sirs and Madams,

I'd like to ask my Congressional Representatives to support The Equity for Our Nation’s Self-Employed Act (H.R. 3660), co-sponsored by Congressman Ron Kind (D-WI 3rd) and Congressman Wally Herger (R-CA 2nd).

Self-employed individuals, including self-employed photographers, pay for health insurance costs with after-payroll tax dollars. This means that the money they use to buy health insurance for themselves and their families is subject to an additional 15.3 percent tax that no other employers or employees must pay.

All business entities other than sole-proprietors receive a deduction for health insurance premiums as an ordinary and necessary business expense for all employees, including owners. Employees and the owner pay for their health insurance premiums pre-tax; therefore, they are not subject to FICA taxes. However, sole-proprietors (Schedule C filers) do not receive this benefit. Their premiums are not paid with pre-tax dollars and are exposed to self-employment tax. Again, sole proprietors are the only business entity that does not receive a full deduction of health care costs.

Health insurance premiums average almost $12,000 per year for family coverage. It is estimated that HR 3660 will save every self-employed individual about $1700 annually.

Thank you
Kirstin Radasch

please pass self-employed tax savings bill!

WE NEED A BREAK FROM YOU ON OUR HEALTH INS. PLEASE GIVE US A BREAK FROM THE HIGH COST FOR SMALL BUS. OWNERS. PLEASE HELP!

JONATHAN BETZ

I am self-employed, and continue to be denied health insurance. My only option for coverage is an extremely expensive COBRA plan. I will not be able to afford that as long as insurance premiums come out of my post-tax income.
Please support legislation that will help us with this huge difficulty.

Tom Virgin

Please pass this bill allowing sole proprietors to deduct their health insurance premiums from taxable income. Especially for photographers and the like who struggle to make a decent living, premiums are already a big burden.

I am self employed with a family of four, and I urge you ... please support this legislation!! Give sole proprietors the same benefit that all the other business entities receive!!

Please pass this bill as it will be vital to my business and success.

We feel it is important to give small businesses the break to deduct health insurance premiums before the FICA tax amount is determined to put them on equal footings and tax benefits with other forms of businesses. Fortunately we are not full-time yet and still obtain our insurance through our full time large corporation employeer, but this is one reason we are not venturing into full time self-employment. The inequality in taxing the small businessman compared to the large corporation needs to be stopped. Please let us know your stand on support of The Equity for Our Nation’s Self-Employed Act (H.R. 3660), co-sponsored by Congressman Ron Kind (D-WI 3rd) and Congressman Wally Herger (R-CA 2nd).

Thank you.

Ruth & Warren Geitgey
Martinez, GA

PLEASE, pass this bill. It is so important that the professionals who invest everything to make their businesses the best they can be are afforded the opportunity to have a small (albeit wonderful) financial cushion with which to continue their businesses successfully.

Please pass this bill allowing sole proprietors to deduct their health insurance premiums from taxable income. Especially for photographers and the like who struggle to make a decent living, premiums are already a big burden.

I have had to buy very expensive health insurance for years because I am a sole proprieter. It is my largest expense next to housing. I need relief just to keep me and my son on health insurance! Please pass this bill.

The combined cost of my health insurance and my prescription medicines is astronomical. These costs total 20 percent of my monthly expenses. Please pass this bill; it is vital to the economic health of self-employed taxpayers and their families.



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This page contains a single entry by Maria Matthews published on November 12, 2007 9:49 AM.

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