Self-Employed Health Equity Adjustment to Lower Tax Hindrance Act of 2005

Self-Employed Health Equity Adjustment to Lower Tax Hindrance Act of 2005 - Amends the Internal Revenue Code to allow self-employed taxpayers to deduct health insurance costs in computing their net earnings.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 727 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 727

 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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 9, 2005

  Ms. Loretta Sanchez of California (for herself, Mr. Paul, and Mrs. 
    Kelly) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 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 of 2005''.

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, 2004.
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