[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 637 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 637

To amend the Internal Revenue Code of 1986 to allow the first $2,000 of 
           health insurance premiums to be fully deductible.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 18, 2003

  Mrs. Boxer 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 allow the first $2,000 of 
           health insurance premiums to be fully deductible.

    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 Insurance Tax Relief Act''.

SEC. 2. FIRST $2,000 OF HEALTH INSURANCE PREMIUMS FULLY DEDUCTIBLE.

    (a) In General.--Subsection (a) of section 213 of the Internal 
Revenue Code of 1986 (relating to medical, dental, etc., expenses) is 
amended to read as follows:
    ``(a) Allowance of Deduction.--There shall be allowed as a 
deduction the following amounts not compensated for by insurance or 
otherwise--
            ``(1) the amount by which the amount of expenses paid 
        during the taxable year (reduced by the amount deductible under 
        paragraph (2)) for medical care of the taxpayer, the taxpayer's 
        spouse, and the taxpayer's dependents (as defined in section 
        152) exceeds 7.5 percent of adjusted gross income, plus
            ``(2) so much of the expenses paid during the taxable year 
        for insurance which constitutes medical care under subsection 
        (d)(1)(D) (other than for a qualified long-term care insurance 
        contract) for such taxpayer, spouse, and dependents as does not 
        exceed $2,000.''.
    (b) Deduction Allowed Whether or Not Taxpayer Itemizes Deduction.--
Section 62(a) of the Internal Revenue Code of 1986 (defining adjusted 
gross income) is amended by inserting after paragraph (18) the 
following new paragraph:
            ``(19) Health insurance premiums.--The deduction allowed by 
        section 213(a)(2).''.
    (c) Conforming Amendment.--Section 162(l)(1)(A) of the Internal 
Revenue Code of 1986 (relating to special rules for health insurance 
costs of self-employed individuals) is amended to read as follows:
                    ``(A) In general.--In the case of an individual who 
                is an employee within the meaning of section 401(c)(1), 
                there shall be allowed as a deduction under this 
                section an amount equal to the sum of--
                            ``(i) so much of the amount paid during the 
                        taxable year for insurance which constitutes 
                        medical care for the taxpayer, his spouse, and 
                        dependents as does not exceed $2,000, plus
                            ``(ii) the applicable percentage of the 
                        amount so paid in excess of $2,000.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2002.
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