[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 262 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 262

    To amend the Internal Revenue Code of 1986 to increase and make 
  permanent the deduction for health insurance costs of self-employed 
                              individuals.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             January 24 (legislative day, January 10), 1995

     Mr. Grassley (for himself, Mr. Roth, Mr. Dole, and Mr. Pryor) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to increase and make 
  permanent the deduction for health insurance costs of self-employed 
                              individuals.

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

SECTION 1. PERMANENT EXTENSION AND INCREASE OF DEDUCTION FOR HEALTH 
              INSURANCE COSTS OF SELF-EMPLOYED INDIVIDUALS.

    (a) Deduction Made Permanent.--Section 162(l) of the Internal 
Revenue Code of 1986 (relating to special rules for health insurance 
costs of self-employed individuals) is amended by striking paragraph 
(6).
    (b) Increase in Deduction.--Section 162(l) of such Code, as amended 
by subsection (a), is amended--
            (1) by striking ``25 percent'' in paragraph (1) and 
        inserting ``the applicable percentage'', and
            (2) by adding at the end the following new paragraph:
            ``(6) Applicable percentage.--For purposes of paragraph 
        (1), the applicable percentage shall be determined as follows:

                ``For taxable years
                                                         The applicable
                  beginning in:
                                                         percentage is:
                    1994.............................          25      
                    1995.............................          50      
                    1996.............................          75      
                    1997 and thereafter..............      100.''      
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1993.
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