[Congressional Record Volume 141, Number 56 (Monday, March 27, 1995)]
[Senate]
[Pages S4603-S4604]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       SELF-EMPLOYMENT TAX CREDIT

  Mr. THOMAS. Mr. President, I rise to talk a little bit about the 
self-employment health insurance tax credit that was passed last 
Friday. This was the right thing to do. This was something that we 
needed to do and need to continue so that it will be retroactive for 
this tax year.
  But I want to make the point that we have not finished yet. Last 
Friday was simply a reinstatement of what we have had in the past. But 
we need to go further. Last Friday's bill reinstates the 25-percent tax 
deduction for premiums on health care insurance for 1994 and increases 
the deduction to 30 percent for tax years beginning in 1995 and 
thereafter.
  This is a very important issue, a very important item to Americans, 
and a very important item to health care. There are 12 million self-
employed business men and women across this country, 19,000 of whom 
reside in Wyoming. These business men and women can now proceed with 
the filing of their 1994 tax returns knowing that a portion 
[[Page S4604]] of their health insurance can be deducted. April 15th is 
grim enough, of course, with Uncle Sam digging deeper and deeper into 
the pockets of the American people. At least Congress can make it a 
deduction that is retroactive and finally make it permanent. That is 
the least that can be done because self-employed business owners, 
owners who put their families and hard-earned savings on the line in 
pursuit of the American dream, are treated unfairly and are treated 
without equity.
  The Tax Code says people who strive to be their own boss are only 
permitted to deduct a small percentage of health insurance with after-
tax dollars. However, if you are a large corporation, you are permitted 
to deduct 100 percent with before-tax dollars. After-tax dollars is a 
critical item because it makes basic medical care twice as expensive as 
if it were provided by the employer. Taxes must be paid first on what a 
self-employed person makes, and then health insurance can be bought 
with what is left over.
  If last year's health care debate was really about expanding health 
care coverage, then Congress should take the opportunity to promote tax 
fairness among businesses large and small whether it is one employee or 
several hundred. There are 2.8 million uninsured self-employed 
proprietors in this country who could quickly purchase coverage if it 
was made affordable. Providing 100 percent health insurance tax 
deduction is at issue. The result of that would be coverage for another 
one-third of the population, not through Government takeover, not 
through price controls or employer mandates, but through a means of 
fairness in the Tax Code.
  Last Friday's action on health care should not be the final action. 
This body should continue to pursue changes in our national health care 
infrastructure to supplement the self-employed health insurance tax 
credit. Vital changes such as portability, prohibiting the use of 
preexisting conditions, and the pooling of small businesses must also 
be included. The result will be the elimination of job lock and 
exorbitant premiums for Americans.
  Malpractice liability reform and regulatory reform for health care 
providers must be included as we move forward on the list of health 
care costs that are ever increasing. This includes tax regulations as 
well as future regulations because we should be footing the bill for 
the unfunded mandates and will continue to do that. With the 
constraints facing us, Congress needs to move forward with health care 
reform, not in the form that we talked about last year, but to do those 
incremental things that we can do to make health care more affordable 
and more acceptable to Americans throughout the country.
  This is a move in the right direction to provide fairness and to 
provide equity. Last Friday was the beginning.
  I urge my colleagues to move forward with health care. It is not 
going to resolve everything, but there have been advances made in the 
private sector for the first time in 15 years and the cost to employers 
has gone down some. On the other hand, of course, Medicare and Medicaid 
continue to go up at an unacceptable rate. We have to do something 
about that.
  So, Mr. President, I am pleased with the action of last Friday in 
this body. I look forward to continued reform in health care. I remain 
committed to working for that reform.
  The PRESIDENT pro tempore. No response from the audience.
  Mr. THOMAS. Mr. President, I suggest the absence of a quorum.
  The PRESIDENT pro tempore. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. NICKLES. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER (Mr. Thomas). Without objection, it is so 
ordered.
  Mr. NICKLES. Mr. President, what is the regular order?

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