To amend the Internal Revenue Code of 1986 to allow the deduction for health insurance costs of self-employed individuals to be allowed in computing self-employment taxes.

February 12, 2003

Ms. LORETTA SANCHEZ of California (for herself, Mr. CROWLEY, and Mr. TANCREDO) introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to allow the deduction for health insurance costs of self-employed individuals to be allowed in computing self-employment taxes.

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 Equity Adjustment to Lower Tax Hindrance Act'.

SEC. 2. ALLOWANCE OF HEALTH INSURANCE DEDUCTION FOR SELF-EMPLOYED INDIVIDUALS FOR PURPOSES OF SELF-EMPLOYMENT TAX.

(a) IN GENERAL- Section 162(l) of the Internal Revenue Code of 1986 (relating to special rules for health insurance costs of self-employed individuals) is amended by striking paragraph (4) (relating to deduction not allowed for self-employment tax purposes) and redesignating paragraph (5) as paragraph (4).

(b) EFFECTIVE DATE- The amendment made by this section shall apply to taxable years beginning after December 31, 2003.

END