Markey Fights for Tax Fairness for Self-Employed

Press Release

Bi-partisan bill tackles tax on health care premiums

Congresswoman Betsy Markey today announced that she will co-sponsor H.R. 1470, the Equity for our Nation's Self-Employed Act, bi-partisan legislation aimed at addressing an unfair tax on health insurance premiums for the self-employed.

Under the current tax code, corporations can deduct the cost of health insurance premiums as a business expense and forego payroll (FICA) taxes on these costs. Self-employed workers, however, cannot take the same deduction and have to pay an additional 15.3 percent tax on those premiums. While health insurance costs are a major concern of all employers, this tax provision unfairly forces the self-employed to pay an extra $1,850 annually.

"As we look for solutions to ease the burden of skyrocketing health care costs for small businesses and families, this bill is a step in the right direction to help America's self-employed," said Rep. Markey. "It levels the playing field for our country's job creators at a critical time when our economy is struggling, small businesses are struggling, and families are more worried about the cost of health insurance."

"America's job creators - small business owners - ought to have equal tax treatment for the purchase of their healthcare. The nation's self-employed don't have that equality today. This bipartisan legislation aims to correct that inequity so that entrepreneurs have more affordable healthcare options," said Susan Eckerly, Senior Vice President of Federal Public Policy for the National Federation of Independent Business. "We look forward to working with Representative Markey to provide this long overdue tax equity to the self-employed."

H.R. 1470 has been referred to the House Committee on Ways and Means.

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