Thursday, June 08, 2006
Deducting the cost of health insurance premiums might keep self-employed entrepreneurs in business, according to a survey released by the Office of Advocacy of the U.S. Small Business Administration. The study shows that the health insurance inference for the self-employed has reduced the likelihood of entrepreneurial exit by 10.7 percent for single filers and 64.8 percent for married filers.
"Access to healthcare continues to be the top issue for small business," said Thomas M. Sullivan, Chief Counsel for Advocacy. "This study would help Congress and the administration as they consider policies that help small business and strengthen the economy."
Dr. Tami Gurley-Calvez wrote the study, Health Insurance Deductibility and Entrepreneurial Survival, with backing from the Office of Advocacy. It inspects how the introduction of tax deductibility for self-employed health indemnity premiums affects the chances of entrepreneurial exit. Among the study's findings:
* The presence of the health insurance deduction decreases the chance that a self-employed entrepreneur would choose to exit the entrepreneurial sector by 10.7 percent for single filers.
* For married filers, the presence of the health insurance inference decreases the rate of way out from entrepreneurship by 64.8 percent.
* The total dollar amount of the health insurance premium deduction also influences the chance of exit from entrepreneurial activities. For single filers a 10 percent increase in the dollar amount of the deduction decreases the probability of exit by 10.7 percent. For married filers the probably of exit is only reduced by 1.1 percent.
For more information and a copy of the complete report, visit the Office of Advocacy website at www.sba.gov/advo
posted by kanth
@ 1:59 AM
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