    [Public Papers of the Presidents of the United States: William J. Clinton (1995, Book I)]
    [April 11, 1995]
    [Pages 521-522]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Statement on Signing Self-Employed Health Insurance Legislation
    April 11, 1995

        Today I have signed into law H.R. 831, the ``Self-Employed Health
    Insurance Act,'' that extends permanently the tax deductibility of
    health insurance premiums for the self-employed and their dependents.
        The Tax Reform Act of 1986 (Public Law 99-514) provided a 25 percent
    tax deduction for health insurance premiums for the self-employed and
    their dependents. However, this deduction expired on December 31, 1993.
    This Act reinstates the 25 percent tax deduction for health insurance
    premiums for 1994 and permanently increases that deduction to 30 percent
    beginning in 1995.
        I strongly support the permanent extension of this deduction. This
    Act will permit 3.2 million self-employed individuals to claim this
    deduction for health insurance premiums on their income tax returns,
    beginning with returns filed for 1994. By making this deduction
    permanent, we are treating the self-employed more like other employers--
    as they should be.
        The increase in the deduction to 30 percent is a step in the right
    direction. In 1993, in the Health Security Act, I proposed an increase
    in the deduction to 100 percent. Increasing the amount of the deduction
    will make health insurance more affordable for self-employed small
    business people who are today paying some of the highest insurance
    premiums in the Nation.
        In approving H.R. 831, however, I must note my regret that the bill
    contains a provision that repeals, as of January 17, 1995, the current
    tax treatment for the sale or exchange of radio and television broadcast
    facilities and cable television systems to minority-owned businesses
    (so-called ``section 1071 benefits'').
        My Administration has undertaken a comprehensive review of
    affirmative action programs, including certain aspects of the section
    1071 benefits. The Act has unfortunately preempted the Administration's
    ability to examine section 1071 in the context of this comprehensive
    review.
        I am also concerned that, in repealing section 1071 benefits, a
    highly objectionable provision was added to H.R. 831 in conference. This
    provision will permit certain pending applicants to receive section 1071
    benefits, while denying them to other pending applicants. This is a
    perfect example of where a President could use line-item veto authority
    to weed out objectionable special interest provisions. I urge the
    Congress to appoint conferees and move forward expeditiously with line-
    item veto legislation that provides authority--this year--to eliminate
    special interest tax and spending provisions.
        Finally, I regret that the conferees on the part of the House of
    Representatives objected to including in H.R. 831 a provision that would
    have closed a tax loophole for the wealthy. This provision, which was in
    the Senate-passed version of the bill, closely resembled a provision I
    proposed in my FY 1996 Budget. The provision would have prevented
    wealthy Americans from avoiding their U.S. tax obligations by renouncing
    their citizenship.
        Despite these concerns, I am signing H.R. 831 because of the very
    important benefits this

    [[Page 522]]

    legislation will provide to our Nation's self-employed and their
    families.

                                                          William J. Clinton

    The White House,

    April 11, 1995.

    Note: H.R. 831, approved April 11, was assigned Public Law No. 104-7.