[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 367 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 367

    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

             February 7 (legislative day, January 30), 1995

  Mr. Dorgan 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 beginning in:     The applicable percentage is:
    1994 and 1995..................
                                        25
    1996 and 1997..................
                                        50
    1998 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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