[Congressional Record Volume 141, Number 154 (Friday, September 29, 1995)]
[Extensions of Remarks]
[Pages E1890-E1891]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 INTRODUCTION OF BILL TO INCREASE DEDUCTION FOR HEALTH INSURANCE COSTS 
                      OF SELF-EMPLOYED INDIVIDUALS

                                 ______


                           HON. SUE W. KELLY

                              of new york

                    in the house of representatives

                       Friday, September 29, 1995

  Mrs. KELLY. Mr. Speaker, I rise today to introduce legislation that 
will restore equity and fairness in the tax treatment of the nation's 
small business entrepreneurs. The Self-Employed Health Fairness Act 
amends the Internal Revenue Code of 1986 to increase the deduction for 
health insurance costs of self-employed individuals to 100% of such 
costs.

[[Page E 1891]]

  Mr. Speaker, our tax code is fundamentally unfair to the self-
employed in its treatment of the deductibility of health insurance. 
Large corporations enjoy a permanent, 100% deduction for health 
insurance premiums, while the self-employed business person has 
previously received only a 25% deduction. Congress enacted legislation 
this year to make the deduction permanent, and to raise it from 25% to 
30% in 1995.
  I supported this legislation and was encouraged by its passage. For 
the sake of fairness, however, we should take the next logical step and 
raise the deductibility for the self-employed to 100%. We must ask 
ourselves a very basic and fundamental question: Why should we treat 
the self-employed small business person differently from a large 
corporation?
  The fact is, small business is, by far, the country's most important 
motivator for innovation, job creation and economic growth. Creating a 
successful small business takes guts, determination, and hard work, but 
it represents the very best of the American dream. I know this 
firsthand, Mr. Speaker. Both myself and my husband are small business 
owners. We both have experienced the satisfaction of creating 
successful small businesses, creating new jobs, and contributing to our 
community.
  However, we have also felt the onerous tax and regulatory burdens 
that stand in the way of successful small businesses today. Self-
employed small business owners face a number of very unique problems, 
and the disparity in the tax treatment of health insurance cost 
represents one of the more troublesome of these.
  Let's send a message to America's self-employed businessmen and women 
that they are just as important as big business. Let's restore fairness 
and equity to the tax code's treatment of the health care expenses of 
self-employed individuals. I urge my colleagues to join me in enacting 
this important legislation.

                          ____________________