Self-Employed Health Insurance Fairness Act of 2001

Self-Employed Health Insurance Fairness Act of 2001 - Amends the Internal Revenue Code to allow a deduction for 100 percent of a self-employed individual's health insurance costs for himself or herself, spouse, and dependents, unless such individual participates in an employer-maintained health plan. (Current law provides for a phased-in 100 percent deduction and disallowance upon participation eligibility.)

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 29 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 29

To amend the Internal Revenue Code of 1986 to allow a deduction for 100 
  percent of the health insurance costs of self-employed individuals.


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                   IN THE SENATE OF THE UNITED STATES

                            January 22, 2001

 Mr. Bond (for himself, Mr. Durbin, Mr. Baucus, Ms. Snowe, Mr. Kerry, 
Mr. Jeffords, Mr. Kyl, Mr. Burns, Mr. Dorgan, Mr. Harkin, Mrs. Lincoln, 
 Mr. Leahy, Mr. Johnson, Mr. Fitzgerald, Mr. Wellstone, Mr. Bingaman, 
  Mr. Enzi, Mr. Lugar, Mr. Roberts, Ms. Collins, Mr. Specter, and Mr. 
Kohl) introduced the following bill; which was read twice and referred 
                      to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to allow a deduction for 100 
  percent of the health insurance costs of self-employed individuals.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Self-Employed Health Insurance 
Fairness Act of 2001''.

SEC. 2. DEDUCTION FOR HEALTH INSURANCE COSTS OF SELF-EMPLOYED 
              INDIVIDUALS INCREASED.

    (a) In General.--Section 162(l)(1) of the Internal Revenue Code of 
1986 (relating to special rules for health insurance costs of self-
employed individuals) is amended to read as follows:
            ``(1) Allowance of deduction.--In the case of an individual 
        who is an employee within the meaning of section 401(c)(1), 
        there shall be allowed as a deduction under this section an 
        amount equal to the amount paid during the taxable year for 
        insurance which constitutes medical care for the taxpayer, the 
        taxpayer's spouse, and dependents.''
    (b) Clarification of Limitations on Other Coverage.--The first 
sentence of section 162(l)(2)(B) of the Internal Revenue Code of 1986 
is amended to read as follows: ``Paragraph (1) shall not apply to any 
taxpayer for any calendar month for which the taxpayer participates in 
any subsidized health plan maintained by any employer (other than an 
employer described in section 401(c)(4)) of the taxpayer or the spouse 
of the taxpayer.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.
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