Legislation alert

Before heading out to Easter recess, Capitol Hill lawmakers proposed some legislation that small-business owners may want to track in the 106th Congress.

* The Small Business Meal Deduction Tax Bill (HR 1195) would increase the business and entertainment deduction for small businesses and the self-employed to 80% over a six-year period beginning in 2000. The current deduction is 50%.

* The Self-Employed Health Insurance Fairness Act (SB 343 and HR 980) calls for immediate 100% deductibility of health insurance costs for the self-employed. Legislation passed in 1998 allows for 60% deductibility this year, increasing to 100% by 2003. But backers of the latest proposed speed-up argue that the self-employed should be entitled to the same tax benefits as large businesses, which already can deduct 100% of their health insurance costs.

* The Farm and Ranch Risk Management Act (SB 642 and HR 957) would allow eligible farmers to contribute up to 20% of their annual taxable income into special tax-deferred savings accounts. Contributions could remain in the account for up to five years to help supplement farmers’ income during bad years.

To read more about the proposed legislation, search by bill number under the Library of Congress’ legislative information site at https://thomas.loc.gov.