From The President
By Bennie L. Thayer, NASE President

This summer is one of the NASE's most active as we tackle the issues of balancing the federal budget and reforming Social Security.

I'm sure that in recent months you've been inundated with stories about Social Security - how the system will be bankrupt by 2029; how the system is especially unfair for self-employed persons who pay 15.3 percent in taxes; and how the system should be reformed.

Not only has the NASE been placed on the steering committee of a Social Security Reform Coalition, but we are also proud to announce a new partnership that will put us, and you, at the forefront of Social Security reform. We have joined with Economic Security 2000, the first national grassroots organization dedicated to reforming and reshaping Social Security.

This organization routinely travels around the country speaking to small-business owners, seniors, baby boomers and everyone interested in reform. Our message is: Reform should secure future generations' retirements and achieve equity for the self-employed, maintain the system's promise to current beneficiaries, and open a new route to savings for every American.

We can accomplish those goals by maintaining the current system and at the same time investing a portion of the Social Security tax in individually-directed IRA-type accounts. Studies suggest that this small transfer of funds to investing - even for the lowest paid worker - will increase retirement benefits two to four times over the current system and at the same time will keep the Social Security system intact. Economic Security 2000 will be coming to your area soon. We urge all NASE Members to get involved in this campaign.

This summer will also see a landmark agreement to balance the federal budget by 2002. President Clinton and Congressional leaders reached a preliminary budget negotiation in May, and the budget reconciliation process may actually be resolved by the time you read this.

While the House Ways and Means and Senate Finance Committees are still hammering out the details, as we go to press, several of the NASE's top priorities are included in the preliminary bill: modernization of the home office deduction, independent contractor clarification, and an increase in the estate tax exemption to $1 million. Self-employed workers may even get the 100 percent deduction for health insurance under provisions to help uninsured children.

Your representatives need to hear your voice - now. Tell them how these issues affect your lives every day. Explain that you hesitate to claim the home-office deduction for fear it will trigger an audit. Tell them that you would like to hire independent contractors, but the process is too complicated and inconsistently applied by the IRS. Ask them to explain why you do not receive the same 100-percent health insurance deduction as large companies.

The most important voices for small businesses are your own. Please contact your senators and representatives. You can find out how to reach them by calling the Congressional Switchboard at (202) 224-3121. When you add your voice to 320,000 others, you leave an unforgettable message.

Bennie L. Thayer

NASE President




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Economic Security 2000
Dates and Locations

July 15-18
Boston, Worcester and Springfield,
Mass., Providence, RI

Sept. 16-18
New York City and Albany, NY

Sept. 23-24
Hartford and New Haven, Conn.

Oct. 14-16
Milwaukee and Madison, Wis.

Week of Dec. 16
California

For more information,
please call 1-888-SS-FACTS

 

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