In other legislative efforts to relieve small businesses, Senator Kit Bond (R-MO) proposed a new bill to give home-based businesses some of the same benefits as other businesses. S.460, the "Home-Based Business Fairness Act of 1997," will increase the self-employed health insurance deduction, restore home-office deduction, and clarify employee and independent contractor criteria. Photo provided courtesy of the National Park Service.

Bipartisan supporters of the "Estate Tax Relief for the American Family Act of 1997" (S.479) hope the new bill will reduce the number of families to be hit by estate taxes and aid those who do qualify for these taxes (See LASN April 1997, "Business Benefits"). The current law permits the federal government to levy a sizable tax when an estate is transferred; for small business owners whose liquid assets might be tied up in their estates, this means their families might have to sell off the business to pay for the estate tax. Ben Bolusky of the American Association of Nurserymen called the current tax "anti-business" and "anti-family." According to supporters, the estate tax, as it stands now, will eventually hurt more middle-income Americans, but opponents argue that this is another attempt at tax relief by the wealthy. The bill, if it passes, will up the amount for the current credit exemption; exempt qualified-assets in family-owned businesses; and extend the deferral period for tax payments.