House committee passes health insurance tax deduction – House Ways and Means Committee – Brief Article
WASHINGTON – A bill that would permanently extend a 25-percent health-insurance tax deduction for the self-employed has passed its first congressional hurdle after being approved by the House Ways and Means committee.
The deduction, which expired at the end of 1993, allows the country’s 9 million self-employed workers to write off 25 percent of their health bills on annual tax returns. About 40 percent of the nation’s restaurants are sole proprietorships or partnerships that could be eligible for the deduction, according to the National Restaurant Association. The Treasury Department projects that about 3 million self-employed will see an increase in their 1994 taxes if the deduction is not reinstated before April 15.
The bill still needs approval by both congressional chambers.
In the Senate, Sens. William Roth Jr., R-Del., David Prvor, D-Ark., and Charles Grassley, R-Iowa, are pushing legislation that would not only restore the 25-percent deduction but also increase it to 100 percent over the next few years.
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