Self-employed seek equity on health cost deduction

Our representatives want us to believe that they’re “pro business” and that they want people to have “health insurance” but in reality, but they can’t do the simplest thing to erase an inequity in the tax code to accomplish that.

The Buffalo Business Journal is reporting that sole proprietors could save around $1,800 a year if Congress allows them to deduct the cost of their health-care premiums before calculating their self-employment taxes. They can deduct the costs from income tax but not from Social Security calculations.

According to the National Federation of Independent Business, “To treat entrepreneurs differently than those who receive their health care from a corporation punishes them simply because they are self-employed. Fixing this inequality in the code is a critical step in helping entrepreneurs gain access to more affordable health-care options.”