Reps. Delgado, Salazar Introduce Bipartisan Legislation to Provide Tax Relief for Self-Employed Business Owners

July 22, 2021
Press Release

WASHINGTON – Today, U.S. Representative Antonio Delgado (NY-19) and Representative Maria Salazar (FL-27) introduced the Tax Fairness for the Self-Employed Act, bipartisan legislation that would level the playing field for self-employed small business owners by making sure that self-employed individuals can access the same tax deductions as corporations when it comes to health insurance premiums. The bill would allow the over 1.7 million self-employed individuals in New York to deduct their health care premiums as a business deduction, saving self-employed individuals an average of $750 a year.

“Self-employed small business owners are paying too much in taxes. An out-of-date tax code has left our farmers and self-employed business owners behind by failing to allow them to deduct health insurance premiums as a business expense,” said Rep. Delgado. “The bipartisan Tax Fairness for the Self-Employed Act levels the playing field and ensures folks who are self-employed receive the same tax benefits as corporations when it comes to health insurance costs.”

“More than one in every 20 Floridians is a self-employed small business owner,” said Rep. Maria Elvira Salazar. “I’m proud to co-lead the Tax Fairness for the Self-Employed Act which will level the playing field between small business owners and corporations, allowing small businesses to grow while expanding access to healthcare.”

The Tax Fairness for the Self-Employed Act has been endorsed by the National Federation of Independent Business (NFIB) and the New York Farm Bureau.

“NFIB supports the Tax Fairness for the Self-Employed Act and appreciates Reps. Delgado and Salazar's advocacy on this important issue. The cost of health insurance continues to be the number-one small business problem, according to NFIB’s 2020 Small Business Problems and Priorities survey. The Tax Fairness for the Self-Employed Act remedies the structural unfairness for many of our nation’s small business owners, resulting in lower health insurance costs,” said Kevin Kuhlman, Vice President, Federal Government Relations NFIB.

“New York Farm Bureau supports Congressman Delgado’s efforts to reduce the cost of health care for farmers in New York and across the country through the Tax Fairness for the Self-Employed Act. Farmers are often self-employed, responsible for all their business costs, including health insurance premiums. Allowing farmers, a full tax deduction for health insurance premiums, against both income taxes and self-employment taxes, will make health care more affordable for farm families and millions of other small business owners that are the backbone of our country,” said New York Farm Bureau President David Fisher.

Employees and employers each receive a tax benefit for contributing to an employee’s health insurance premiums—employees are able to utilize pre-tax dollars for their share while employers deduct their contribution as a tax-exempt business expense. Self-employed individuals pay taxes as both the employer and employee, however, current tax law prohibits them from deducting this contribution as a business expense as other employers do. The Tax Fairness for the Self-Employed Act would allow self-employed individuals to deduct their health insurance premiums as a business expense and continue to allow them to deduct costs from their individual income tax. This legislation will help individuals in both urban and rural areas who are the backbones of their communities and puts the self-employed on equal footing with other businesses.

 

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