[Congressional Record Volume 141, Number 1 (Wednesday, January 4, 1995)]
[Extensions of Remarks]
[Page E3]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


 INTRODUCTION OF HEALTH INSURANCE DEDUCTION FOR SELF-EMPLOYED BUSINESS 
                                 OWNERS

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                          HON. RICHARD E. NEAL

                            of massachusetts

                    in the house of representatives

                       Wednesday, January 4, 1995
  Mr. NEAL of Massachusetts. Mr. Speaker, prior to December 1993, self-
employed business owners were allowed to deduct 25 percent of the cost 
of their health insurance and this deduction has expired. I am 
introducing legislation that will make the cost of health insurance 
deductible for self-employed business owners.
  The purpose of this legislation is to restore and to make permanent 
the 25 percent deduction and to gradually increase the deduction to 100 
percent. The bill phases in the 100 percent deduction over a period of 
4 years. For calendar years 1994 and 1995, health insurance would be 25 
percent deductible; in 1996 and 1997 it would become 50 percent 
deductible; and in 1996 and thereafter health insurance would become 
100 percent deductible. Increasing the deduction to 100 percent would 
provide small businesses with an incentive to provide expanded health 
insurance coverage. Also, corporations are permitted to deduct 100 
percent of the cost of providing health care insurance.
  One of the major problems facing small businesses is the high cost of 
health insurance. Increasing the deduction would allow business owners 
to spend more on health care. This legislation provides businesses with 
an incentive to purchase health care insurance.
  Congress can immediately begin to reduce the cost of health care 
coverage by extending the 25-percent deduction for self-employed 
individuals' health insurance. The high cost of health care insurance 
is one of the impediments to health care access. I urge you to support 
this legislation.


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