Legislation Would Exempt Small Businesses' Health Insurance Coverage Premiums
Reps. Ron Kind (D-Wis.) and Wally Herger (R-Calif.) have introduced legislation (HR 3660) that would allow self-employed individuals to deduct the cost of health insurance premiums from their payroll taxes, the Washington Post reports (McLoone, Washington Post, 9/26). Under current law, sole proprietorships cannot exclude health insurance premiums from payroll taxes of 15.3%, while corporations can deduct premiums as a business expense and exclude the cost of premiums from payroll taxes (Boulton, Milwaukee Journal Sentinel, 10/4).