NEWSRELEASE
For Release: April 4, 2006 Health Insurance Tax Deductions Help Entrepreneurs Tax Rates Impact Entrepreneurial Decisions Study Shows WASHINGTON, D.C. - Deducting the cost of health insurance premiums may keep
self-employed entrepreneurs in business, according to a study released today by
the Office of Advocacy of the U.S. Small Business Administration. The study
shows that the health insurance deduction for the self-employed has decreased
the likelihood of entrepreneurial exit by 10.8 percent for single filers and
64.9 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 will 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 funding from the Office of Advocacy. It
examines how the introduction of tax deductibility for self-employed health
insurance premiums affects the chances of entrepreneurial exit. Among the
study’s findings: Ø
Contact: John McDowell, (202) 205-6941
john.mcdowell@sba.gov
SBA Number: 06-10 ADVO
Press Kit
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For married filers, the presence of the health insurance deduction decreases the rate of exit from entrepreneurship by 64.9 percent.Ø
The absolute dollar amount of the health insurance premium deduction also influences the probability of exit from entrepreneurial activities. For single filers a 10 percent increase in the dollar amount of the deduction reduces the probability of exit by 10.6 percent. For married filers the probably of exit is only reduced by 1.2 percent.The Office of Advocacy, the “small business watchdog” of the government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats and it funds research into small business issues.
For more information and a copy of the complete report, visit the Office of Advocacy website at
www.sba.gov/advo###
The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The presidentially appointed Chief Counsel for Advocacy advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. For more information, visit
www.sba.gov/advo, or call (202) 205-6533.