[Congressional Record Volume 149, Number 174 (Tuesday, November 25, 2003)]
[Senate]
[Page S16022]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. BOXER:
  S. 1972. A bill to amend the Internal Revenue Code of 1986 to provide 
for a tax credit for small employer-based health insurance coverage in 
States in which such coverage is mandated, and for other purposes; to 
the Committee on Finance.
  Mrs. BOXER. Mr. President, today, I am introducing the ``Small 
Business State Mandated Health Insurance Assistance Act.''
  The legislation would provide a tax credit to small businesses in 
states where the law mandates that they provide health insurance to 
their employees. The credit would be for 50 percent of the amount the 
employer spends providing health insurance for his or her employees.
  In California 6.4 million people are uninsured. That's more than 18 
percent of the state. To deal with the issue, the state legislature 
recently passed a law mandating that employers provide their workers 
with health insurance.
  Many smaller businesses have told me that they do not object to the 
law itself, but that they will have a hard time financially complying 
with the mandate--especially in these tough economic times. 
Furthermore, there is concern that neighboring States without such a 
mandate will recruit our small businesses entrepreneurs to move to 
their states where they would not have to provide insurance for their 
workers.
  While businesses can currently deduct from federal taxes, as costs of 
doing businesses, the costs of the health insurance provided to their 
employees, this assistance is simply not large enough to provide the 
help that small businesses truly need. That is why I am introducing 
this bill today. I encourage my colleagues to join me in this effort.
                                 ______