SMALL BUSINESS / TAXES

This article examines the benefits created by the ability self-employed individuals had this past tax season to deduct the costs of health insurance from taxable income (when they pay the self-employment tax) and the unfortunate fact that those benefits aren’t likely to recur. The possibility to do so was opened up by the Small Business Jobs Act, but it was only allowed for 2010 and the prospects of renewing it seem dim. The article briefly looks into the politics of the situation, with an eye to deficit-reduction politics, and laments the injustice of the extra burdens put on the self-employed that no other bracket faces. Link: http://www.businessweek.com/smallbiz/content/may2011/sb20110518_065045.htm?campaign_id=smallbiz_related From Businessweek (May 18, 2011) “Tax Break for Self-Employed Likely To Vanish”