The new congress is moving forward with legislation that will have a direct impact on entrepreneurs, included taxes and health insurance.
One change may arise is in the Alternative Minimum Tax (AMT). The Alternative Minimum Tax was established to catch those very few wealthy individuals who slip through the cracks of the tax code. As American incomes grow, more and more people are getting snared by this complex and convoluted tax. The AMT has become a major concern for entrepreneurs as many are unknowingly getting snared in its web.
A new report from the Tax Foundation finds that some Congressional districts are being hit by the AMT harder than others -- and interestingly many of those districts are represented by Democrats. So guess what? The Democrats seem to have finally found a tax that they don't like. Newly elected House Ways and Means Chairman Charles Rangel (D) has made reforming the AMT a top priority for this year.
The AMT is just one small symptom of a terminally ill tax code. But, don't count on this Congress nor the White House to give any attention to true tax reform. And speaking of terminal illness.....
An area of concern for many small business owners is health insurance. The NFIB has taken a rather curious path in their lobbying efforts when it comes to health insurance reform. They are aligning with Sen. Ted Kennedy.
"Small business is the country’s leading job creator and represents 99 percent of employers, so a reasonable health care solution demands the attention of our federal lawmakers," said NFIB President and CEO Todd Stottlemyer. "It will take both sides of the aisle to broker an agreement and find common ground. We are confident that an open, honest debate on this critical issue can take place, and we encourage the leadership to set a timeline."
Rather than look to the free market for real health care system solutions, the NFIB is selling their soul. More government regulation and mandates in health insurance may give some short-term relief, but it ain't going to fix the problem. We will only face bigger problems in health care in a few years by postponing the true reform and deregulation that is needed.
