RISMEDIA, April 15, 2008-As the nation’s homeowners struggle to complete their taxes by April 15, the American Homeowners Grassroots Alliance (AHGA) on April 10 urged Congress to simplify and improve the tax code. In testimony to the House Small Business Committee, AHGA suggested a number of reforms that will help between 34.3 million and 36.6 million home office households. At least 18 million are home-based businesses, according to U.S. Census figures. They include Internet-centric businesses, such as the millions of eBay Power Sellers who derive all or most of their income from Internet commerce, service businesses such as website designers, real estate agents, mortgage brokers, and millions of other home-based businesses. The balance are employees of businesses of all sizes or governments at all levels who telecommute from home.
“These changes would help homeowners, the economy, and the environment,” observed AHGA President Bruce Hahn. “By reducing their tax burdens and improving economic efficiency, they may also help many hard-pressed homeowners avoid foreclosure” he added.
Among AHGA’s suggestions:
- Simplify and liberalize home office tax deductions
- Provide new tax incentives to encourage working from home
- Provide faster write-offs of business equipment used in the home
- Allow a penalty free withdrawal or loan from IRA or 401k for all expenses
- Attendant to home office creation
- Prohibit state and local sales taxes on goods or services sold over the Internet
- Repeal the federal excise tax (FET) on communications services
- Repeal state “convenience of the employer” rules that creates dual state income tax liability
- Create new tax credits or deductions to encourage broadband and cellular providers to speed up the build out of networks to rural or other underserved homes that currently lack access to these services.
For more information, visit http://www.americanhomeowners.org.
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