[Congressional Record Volume 143, Number 23 (Thursday, February 27, 1997)]
[Extensions of Remarks]
[Page E342]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             THE SELF-EMPLOYED HEALTH FAIRNESS ACT OF 1997

                                 ______
                                 

                           HON. SUE W. KELLY

                              of new york

                    in the house of representatives

                      Thursday, February 27, 1997

  Mrs. KELLY. Mr. Speaker, I rise today to introduce The Self-Employed 
Health Fairness Act of 1997, legislation which will raise to 100 
percent the deductibility of health insurance costs for the self-
employed. This common sense legislation will restore equity and 
fairness in the tax treatment of many of this Nation's small business 
entrepreneurs. I introduced identical legislation in the 104th 
Congress, and received the support of over 50 bipartisan cosponsors.
  Our current tax code is fundamentally unfair to the smallest of our 
Nation's business owners: the self-employed. Larger corporations enjoy 
a permanent, 100 percent deduction of health insurance costs, while in 
1997 a self-employed individual is only allowed to deduct 40 percent of 
these same costs. We must ask ourselves a very basic and fundamental 
question: Why should the self-employed small business person be treated 
differently than a large corporation?
  The 104th Congress did begin to address this problem, and I do not 
mean to take lightly the progress that it made. Two pieces of 
legislation were enacted that provided relief to the self-employed. 
First, legislation was enacted which restored and made permanent the 
deductibility that had expired during the 103d Congress, and raised the 
level of deductibility from 25 to 30 percent. Second, legislation which 
incrementally raised the deductibility to 80 percent by the year 2006 
was also enacted. These were important steps, and I was proud to have 
supported them. However, as a matter of fairness and equity, we can and 
should do better.
  By raising the deductibility to 100 percent, we are helping to 
achieve two important goals. We are strengthening the most important 
sector of our economy by relieving a significant tax burden that self-
employed small businessmen and women must now shoulder. We are also 
helping to ensure that more Americans have access health care, because 
without full deductibility, these costs are sometimes more than a small 
business owner can afford.
  Let's sent a message to America's self-employed 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.

                          ____________________