-- July 14, 2000
-- Vol. l. No. 5

In this issue:

• NEW CA WEBSITE UP AND RUNNING. CATERS TO THE SELF-EMPLOYED WITH DEALS AND DISCOUNTS AND NEWS. VISIT AND SIGN UP FOR CHANCE TO WIN TRIP TO HAWAII.

• CA MAKES NAME CHANGE OFFICIAL. JUST A BIGGER RURAL FOCUS.

• CA GEARING UP FOR HEALTH CARE CAMPAIGN - PUSH FOR MORE CHOICE, LOWER COSTS.

• ESTATE TAX ELIMINATION BILL PASSES SENATE.

• HEALTH TAX DEDUCTION FOR SELF-EMPLOYED, SMALL BUSINESS TAX REFORM MEASURES STILL ALIVE IN D.C.

• HOUSE AG COMMITTEE CONTINUES HEARINGS ON NEW FARM BILL.

• SHORT TAKES.

CA'S NEW WEBSITE GOES LIVE. VISIT AND SIGN UP FOR CHANCE TO WIN TRIP TO HAWAII

CA's new website is up and running. You can find it at http://www.selfemployedcountry.org/default.html. One of the earliest rural organizations on the internet, CA's revamped site caters to self-employed people and their needs.

You'll continue to find legislative and public policy information there, including this newsletter. But the new site's most dramatic changes are an array of discounts and deals from commercial partners - whether it's information on group insurance, or links to brand name shopping sites such as AT&T, Omaha Steaks, L.L. Bean, Bass Pro Shops, and more. Free email, free classified ads, free yellow pages are also featured for members.

CA has also partnered with Associated Press to bring members and visitors up-to-date news affecting self-employed and rural small business people. In addition to world news, CA's Self-Employed Country magazine is also available in on-line format.

The website highlights three tiers of membership in CA & the Self-Employed. The free on-line membership gives visitors a free prescription card that can save them up to 40% and more than 55,000 pharmacies, shopping discounts and the website on-line services. CA's standard membership, at $8 per month, includes the free on-line benefits, plus supplemental insurance benefits and more than 20 other benefits. The Members advantage plan, at $16 per month for individuals or $23 per month for families features the free and standard benefits, plus dental, ear and eye care at discounted cost.

If you visit the site, be sure to enter the drawing to win a free trip to Hawaii.

CA MAKES NAME CHANGE OFFICIAL. IT'S "CA & THE SELF-EMPLOYED"

It's been in the works for some time, and now it's official. CA recently announced a new name. CA is now "Communicating for Agriculture & the Self-Employed".

The new name doesn't signal any less of a commitment to CA's long-standing membership roots in agriculture, but does reflect the changing demographics in rural America and a more recognizable commitment to who CA has always provided service to - self-employed people and small business people in rural America.

"An increasing number of our members are self-employed, but not necessarily in the agricultural arena," said Milt Smedsrud, founder of CA. "We continue to be committed to supporting American agriculture, and we recognize that most farmers and ranchers are self-employed. In addition, as the U.S. workforce changes, we're seeing that self-employed people in this country, as a whole, are a rapidly growing force that demands attention in Washington."

CA GEARING UP NATIONAL HEALTH CARE CAMPAIGN

CA's new health care reform campaign -- "American Campaign for Health Care Choices and Lower Costs" - is gearing up for what CA believes will require a strong, grassroots-based call from the public to Congress to make wiser choices in health care reform. Plans are in the works for local town hall forum meetings in key CA member states this fall, to help send a message to Washington about the need to build a more competitive, consumer driven health care system.

"We need to go from Ôwrong reform' to Ôright reform'," said CA President Wayne Nelson. "The American free market competitive approach has always been the best strategy over the long term for protecting consumer interests. We've been going the wrong direction. The results have been less competition and higher costs.

"Health care reform in the new century must be based on empowering consumers - give them more choices, give them the information and tools they need to make sound choices."

Among legislative recommendations are:

• expanding choice and options among insurance plans available to consumers; reducing unnecessary mandates that drive up the cost of insurance;
• expanding performance information from health care providers and plans available to consumers;
• tax credits to help more people to afford private insurance (as has been proposed by a bipartisan group of Senators, and a concept endorsed by candidate Bush);
• strengthening member association plans that have individual members;
• strengthening the system of state high-risk health insurance pools to serve the uninsurable population;
• expanding competition in market sectors that have become dominated by a few controlling companies.

ESTATE TAX ELIMINATION BILL PASSES SENATE

The Senate today passed the estate tax elimination legislation by a nine-vote margin. After the House of Representatives passed H.R. 8, the "Death Tax Elimination Act" last month, the battle heated up in the Senate as opponents offered compromise legislation. The Senate, however, passed identical legislation as approved by the House. That means the bill will go straight to the President's desk, rather than to a conference committee. However, the battle is not done, as the legislation faces a likely veto by the President, and continuation as a campaign issue for both parties. CA President Wayne Nelson was interviewed and quoted in the national media during the past week, including Newsweek and MSNBC, on how estate taxes hurt continuity of family farms and small businesses -- not only in terms of exposure to the tax, but also in terms of the need for complex and costly legal estate consulting. The legislation would gradually eliminate estate taxes over a ten- year period.

SMALL BUSINESS TAX BREAK BILLS STILL ALIVE

Key tax break proposals that would benefit the self-employed and small business are still alive, and there are reasonable prospects that some will gain approval by Congress this year. Legislation that would provide an immediate 100 percent tax deduction for health insurance premiums for the self-employed, and would improve Medical Savings Accounts is expected to be included in the second Budget Reconciliation Bill due in September. The first Budget Reconciliation Bill is expected to include eliminating the inequity of the Marriage Tax Penalty.

Other items still to be considered:

• Section 179 - raises the amount of depreciable equipment eligible for immediate expensing from $19,000 to $30,000.
• Installment Sales - reinstates the installment sales provision for small businesses that use the accrual
• basis for tax purposes.
• Meal Deduction - increases the business meal deduction from 50% to 60% effective 2001.
• Alternative Minimum Tax (AMT) reform.
• 401K Plan changes that would increase allowable contributions from $10,000 to $14,000 per year.

HOUSE HEARINGS ON NEW FARM BILL SHIFT BACK TO WASHINGTON

The House of Representatives Agriculture Committee continues to gain more input on directions for a new omnibus Farm Bill, that will be the key focus of the newly elected committee next year. The venue has shifted back to Washington with the committee holding hearings this month to hear from major agricultural industry and farm groups. CA will be providing input emphasizing the need for an overhaul and more reliable farm safety net; tax incentives to expand farmer-owned, valued-added agricultural processing businesses; enhancing beginning farmer and rancher finance programs; more teeth in anti-trust oversight and enforcement; and full implementation of new crop insurance reforms and mandatory livestock price reporting.

FEEDBACK WANTED

CA welcomes member comments, ideas and thoughts on these and other legislative issues. Email us back your reply. Or give us a call and ask for Wayne Nelson, President, or Bruce Abbe, Vice President of Public Affairs at 1-800-432-3276.

Email your reply to - mailto:publicaffairs%20@cainc.org