Washington, D.C. (August 1, 2008) - President Bush has signed into law a mammoth piece of housing legislation that includes assistance for homeowners facing foreclosure, a one-time tax credit of up to $7,500 for first-time buyers and a plan to aid struggling federal mortgage giants, Fannie Mae and Freddie Mac. Unfortunately, the bill includes a new tax regulation provision that is opposed by the National Association for the Self-Employed (NASE).

The provision, which was recommended by the Department of Treasury to narrow the tax gap, was included in the housing bill as an offset for the first-time buyers tax credit. It requires credit and debit card issuers to report annually to the IRS the electronic transactions of their business merchants. This troubling recommendation may put entrepreneurs at risk, since it is likely to add significantly to the cost of starting up and running a business that requires credit and debit card transactions. Most of the NASE’s members feel that this recommendation will not increase tax compliance, as it collects information that is likely already reported.

“While we agree that Congress needed to address our nation’s housing crisis, the NASE is deeply disturbed by the language on electronic transactions reporting which will only add to the regulatory burden on the micro-business community,” said Kristie Darien, executive director of the NASE’s legislative office.

The NASE will continue to educate legislators on the negative impact this tax regulation will have on small business and will fight to repeal this provision before it is set to take effect in 2010. For up-to-date information, visit the NASE Advocacy Web site (http://advocacy.nase.org/).

About the NASE

The National Association for the Self-Employed (NASE) is the nation’s leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) non-profit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association’s web site at www.NASE.org.

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