Bill Would Create Optional Standard Deduction
The National Association for the Self-Employed (NASE) is thrilled to lend support to legislation introduced today by Congressmen Kurt Schrader (D-OR) and Ron Kind (D-WI) which would simplify taxes for millions of small business owners.
The Home Office Deduction Simplification Act, HR. 1827, would allow home-based businesses to take a standard $1,500 deduction for home office expenses. According to an NASE study, more than half of small businesses are based out of a home office.
“Too many home-based business owners who are eligible for the home office deduction elect not to take it because of the complexity of the form and calculations required,” said Kristie Arslan, Executive Director of the National Association for the Self-Employed (NASE). “This means valuable tax refund dollars that could be invested back into the business are left on the table each year. The creation of an optional standard deduction will go a long way in easing the minds of these cautious business owners. The fact that this bill ensures that the standard deduction will be adjusted for inflation also ensures that future businesses will be able to take advantage of this tax benefit for years to come.”
“I’ve built two small businesses from scratch,” said Schrader. “And I can tell you from experience that the complexity of our tax code hinders business growth. By making it easier for Oregon small businesses to pay their taxes you can encourage them to expand their operations and hire more workers – and job creation is exactly where Congress should be focusing our time right now.”
“Small businesses are the backbone of our economy,” said Kind. “They are generating two out of every three jobs right now, serve as important anchors in our communities, and are vital to our economic recovery. It is critical that we help these economic engines by providing the resources and tax credits to make it easier and fruitful to own and maintain a small business during this tough time. I will continue working to provide the resources our small businesses need to grow, hire, and drive dollars back into our local communities.”
Schrader and Kind introduced similar legislation in 2009 with Republican co-sponsors. However that legislation remained in committee when Congress adjourned. This year’s version, H.R. 1827, was referred to the Committee on Ways and Means for consideration.
The National Association for the Self-Employed (NASE) is the nation’s leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association’s Web site at www.NASE.org.