[Congressional Record Volume 143, Number 38 (Friday, March 21, 1997)]
[Extensions of Remarks]
[Page E558]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    HOME-BASED BUSINESS FAIRNESS ACT

                                 ______
                                 

                            HON. LINDA SMITH

                             of washington

                    in the house of representatives

                        Thursday, March 20, 1997

  Mrs. SMITH of Washington. Mr. Speaker, I am pleased to join my 
colleagues, Representative Talent  from Missouri, and Representative 
Portman from Ohio, in introducing the Home-Based Business Fairness Act. 
I also wish to compliment Representative Talent for his unfailing 
commitment to relieving the tax and regulatory burdens affecting small 
businesses as chairman of the House Committee on Small Business.
  With tax season upon us, most Americans are focused on one 
overwhelming problem: our antiquated and complex Tax Code. There is 
growing consensus on the need to change and simplify our tax system. It 
penalizes hard-working, responsible Americans, and inhibits their 
ability to save for themselves and for their children and 
grandchildren. The time is ripe, Mr. Speaker, for a commonsense 
approach to providing tax relief to individuals and to small and women 
entrepreneurs. Home-based businesses, in particular, need our attention 
and commitment.
  One of the most exciting trends in small business today is the 
burgeoning of home businesses. The majority of them are created and 
operated by women. There are now more than 9 million home-business 
owners, and, according to the Small Business Administration, an 
estimated 300,000 women in this country are starting home-based 
businesses each year. The entrepreneurial spirit of these men and women 
is breaking through existing barriers to work, and driving economic 
growth and jobs. These jobs give parents greater freedom and 
flexibility to balance and meet their families' needs, including those 
of their children, grandchildren, and aging parents.
  While the technology explosion in our world is facilitating this new 
phenomenon, our Tax Code is hindering it. We must treat women-owned and 
home-based businesses more fairly. The Home-Based Business Fairness Act 
is a strong, commonsense approach to providing tax relief for this 
dynamic and vital sector of America's working families. It would allow 
small entrepreneurs to deduct their health insurance costs and the 
expenses of their home offices. It would give them the freedom to use 
independent contractors to grow and expand their operations without the 
fear of onerous back taxes, penalties, and interest small entrepreneurs 
too often face because of subjective and inconsistent reclassifications 
of independent contractors as employees by the IRS.
  With this bill, Representative Talent and I have tried to address the 
three problems which we believe are critical to helping self-employed 
men and women succeed in home business. I look forward to working with 
my colleagues in the House on this important legislation.

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