[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2559 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 2559

   To amend the Internal Revenue Code of 1986 to provide an expanded 
                      medical expenses deduction.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 30, 1995

Mr. Smith of Michigan introduced the following bill; which was referred 
                   to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to provide an expanded 
                      medical expenses deduction.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Health Care Tax Equity Act of 
1995.''

SEC. 2. EXPANDED DEDUCTION FOR HEALTH INSURANCE PREMIUMS AND MEDICAL 
              EXPENSES.

    (a) In General.--Subsection (a) of section 213 of the Internal 
Revenue Code is amended to read as follows:
    ``(a) Allowance of Deduction.--
            ``(1) In general.--Deductions shall be allowed for expenses 
        paid during the taxable year, not compensated for by insurance 
        or otherwise, for medical care of the taxpayer, his spouse, or 
        a dependent (as defined by section 152)--
                    ``(A) to the extent such expenses do not exceed 
                $1800 ($2400 in the case of a joint return); and
                    ``(B) to the extent such expenses, excluding those 
                expenses deducted under subsection (a)(1)(A), exceed 
                7.5 percent of adjusted gross income.
            ``(2) Treatment of employer- or government-provided medical 
        care.--The deduction in subsection (a)(1)(A) shall be reduced 
        by the sum of--
                    ``(A) the value of employer-provided coverage for 
                medical care; and
                    ``(B) the expenses paid by any government (except 
                in the capacity of an employer) of medical care.''
    (b) Addition of Expanded Deduction to Computation of Adjusted Gross 
Income.--Subsection (a) of section 62 of the Internal Revenue Code is 
amended by inserting after paragraph (14) the following language:
            ``(15) Health care expenses.--The deduction allowed by 
        section 213 to the extent not in excess of the amount 
        applicable under subsection (a)(1)(A).''
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply to taxable years beginning after the date of the enactment 
of this Act.
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