You Deserve A Break

Tax, Internet, and health-care relief for the small business owner.
Magazine Contributor
2 min read

This story appears in the January 1999 . Subscribe »

Several provisions in the fiscal 1999 federal budget offer entrepreneurs tax and health-care relief . . . as well as a special break for small-business owners using the Internet. Thanks to the Internet Freedom Act, you won't have to worry about new state or local taxes for three years, as local governments are prohibited from imposing any new Internet access taxes and from levying "discriminatory taxes" on transactions not similarly taxed in non-Internet commerce. For example, if entrepreneurs selling across state lines are currently not taxed by the state they're selling in, new taxes can't be passed.

In addition, the act creates the Advisory Commission on Electronic Commerce, which is composed of representatives from industries and state and local governments, to study Internet taxation. The commission will solicit public commentary (to be given to Congress) and issue recommendations in 18 months.

Other provisions in the new budget allow self-employed workers to:

*deduct 100 percent of their health insurance premiums for themselves and their families in 2003 instead of 2007. The acceleration also changes the level of deductibility for other years: You can deduct 60 percent of the cost from 1999 to 2001, and 70 percent in 2002. This doesn't apply if your company is a corporation and you are one of its employees;

*deduct research and development costs for an additional year (the tax credit has been extended until June 30); and

*continue to obtain a tax credit by hiring hard-to-place low-income people under the Work Opportunity and Welfare-to-Work programs. This deduction was scheduled to end in April but has been extended through June.

More from Entrepreneur

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

Whether you are launching or growing a business, we have all the business tools you need to take your business to the next level, in one place.
Enroll Now

Related Books

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

It Started As a Joke and Turned Into a Startup That Raised $1 Million in Funding