For the home based business, the home office becomes a sort of communications central. These rapid and profound changes in how we dobusiness demands changes in how our businesses are managed, and how we account for our expenses. The current tax regulations governing deducibility of home offices is hopelessly outmoded. New technology and ways of doing business mean that for a growing segment of both home based and corporate workers,the office is becoming an electronic presence visited only to perform necessary administrative functions. This improves finiancial productivity, reduces the commuting burden on our roads and highways,and increases the amount of time we have to spend with our families.
Home based businesses are the fastest growing segment of business inthe United States.
In the last economic recovery, home based businesses created millions of important new jobs. Projections are forthese small businesses to continue their phenomenal growth and createat least 12 million new jobs between 1992 and the year 2005. There are an estimated 24 million people who operate businesses from their homes today. It's time for legislative change to remove the penalties home based businesses face simply because they happen to be located in a residence. Let me personalize the impact of home office deductions.