[Congressional Record Volume 143, Number 30 (Tuesday, March 11, 1997)]
[Senate]
[Page S2132]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DORGAN (for himself and Mr. Bumpers):
  S. 420. A bill to amend the Internal Revenue Code of 1986 to phase in 
by the year 2000 a 100 percent deduction for the health insurance costs 
of self-employed individuals; to the Committee on Finance.


            The Health Insurance Cost Tax Equity Act of 1997

 Mr. DORGAN. Mr. President, today I rise to introduce the 
Health Insurance Cost Tax Equity Act of 1997, which is legislation to 
finally put our Nation's sole proprietors on par with their larger 
corporate competitors with respect to the tax treatment of health 
insurance costs.
  Last summer in the Health Insurance Portability and Accountability 
Act, Congress took a great stride in addressing one of urgent tax 
matters facing our family farmers and ranchers. This act, which was 
passed by Congress and signed into law by the President, included a 
proposal to increase the amount that farmers, ranchers and other sole 
proprietors may deduct for their health insurance costs to 80 percent 
by the year 2006, a significant improvement from its current level of 
40 percent.
  But we cannot stop at this point. It is indefensible that our tax 
laws tell some of our biggest corporations that they still can deduct 
100 percent of their health insurance costs, while others, mostly 
smaller businesses, are told they can deduct only a smaller share of 
their health insurance costs.
  This provision is absolutely critical to the health care concerns of 
farmers, ranchers and small business owners who conduct their 
businesses as sole proprietors. That is why I'm reintroducing 
legislation this year to ensure complete fairness in the Tax Code for 
sole proprietors who acquire health insurance coverage for themselves 
and their families. My bill will increase the deduction for the health 
insurance costs of the self-employed to 60 percent and 80 percent in 
1998 and 1999, respectively. After that, Americans who work for 
themselves could deduct 100 percent of their insurance costs, just as 
large corporations do.
  The health of a farm family or small business owner is no less 
important than the health of the president of a large corporation, and 
the Internal Revenue Code should reflect this simple fact.
  I urge my colleagues to cosponsor this legislation. It promotes tax 
justice and the well-being of our independent producers and the entire 
country.
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