Thursday, May 19, 2011

Ron Kind's Right--On This One

This is a matter of equity.

For the 2010 tax year, for the first time, she could deduct that amount from her income when she pays the self-employment tax, the 15 percent levy all freelancers are required to contribute to Social Security and Medicare, saving her $540. Fleming's not counting on the same break for the 2011 tax year, though, because Congress passed it solely for 2010 in last year's Small Business Jobs Act. "When the law no longer applies," she says, "that's more money out the door."

But health-insurance premiums ARE deductible for businesses....right? This deduction affects 22 million people.

Another deduction of interest is the home-office. There's a proposal to simply allow $1500.00/year for that.

Representative Ron Kind (D-Wis.), who has co-sponsored both bills and introduced similar legislation in previous sessions, says success depends on the cooperation of Republicans in the House, who fought last year's jobs act that included the one-year health insurance deduction. "They may not be that opposed to just letting everything expire," Kind says. Getting the health insurance deduction extended is "a tremendous priority" for California Republican Representative Wally Herger, who introduced the bill in the current session, says spokesman Matt Lavoie.

Now--of course--Congress is playing the "offset deductions with spending reductions" game, and the poor dears in Congress can't seem to find any spending reductions.

I have a suggestion: reduce Congressional home-office spending.

1 comment:

Badger Catholic said...

I think he'll win the Dem nomination if Feiny doesn't run.