Small Business Prescription for National Healthcare Reform

Under the current tax code, the nation’s 21 million self-employed individuals (sole proprietors) are unable to deduct premiums as a business expense and are required to pay an additional 15.3 percent self-employment tax—their payroll tax—on their healthcare costs. These business owners are at a significant tax disadvantage to larger businesses, which do not pay payroll taxes on the health insurance they provide employees.