Top analysts report that the United States economy contines to limp along, and no one knows that better than the self-employed and micro-business. Seventy percent of entrepreneurs consider their micro-business a career, one that presently supplies the main source of income to their households. According to data released by the National Association for the Self-Employed (NASE), micro-business owners’ top concerns in the current economic decline are that they will be forced out of business, must put off retirement, and will face an increased cost of living.
The continuing credit crisis is causing major cash-flow issues for the self-employed and they are finding it increasingly difficult to obtain needed financing and credit. The majority of business owners indicated that they were experiencing decreases in their lines of credit from banks and financial institutions as well as lower limits on credit cards. Home equity loans, which are often used by micro-business owners for startup or expansion, have also proven futile since many houses are worth less than they were just a few years ago.
The NASE is urging the Obama Administration and Congress to pass an economic stimulus measure that is targeted to the small business and self-employed communities. We urge passage of the following proposals:
Making permanent the individual income tax rate cuts from 2001 and 2003 for those making below $250,000 average household income;
The creation of a $1,500 standard home office deduction option;
- A two year expansion of the self-employment tax deduction on health insurance for sole-proprietors that was included in the Small Business Jobs Act;
Expansion of the Small Business Health Care Tax Credit to include self-employed business owners.