Statement of Administration Policy: H.R. 831 - Permanently Extend the Tax Deductibility for Health Insurance Costs for Self-Employed Individuals

(House) AND SENATE
(Archer (R) TX and 3 others)

As stated previously, the Administration supports the primary purpose of H.R. 831 — to extend permanently the 25 percent tax deduction for health insurance premiums for self-employed individuals.

The Administration opposes one of the bill's offsets — i.e., the outright repeal of the current tax treatment for the sale of radio and television broadcast facilities and cable television systems to minority-owned businesses. The Administration has expressed its willingness to work with Congress to review what actions are necessary to ensure proper use of the provision but continues to oppose its outright repeal.

The Administration will work with the Congress to identify appropriate offsets to extend this important health insurance tax deduction.

Scoring for Purposes of Pay-As-You-Go

H.R. 831 would affect receipts; therefore, it is subject to the pay-as-you-go requirement of the Omnibus Budget Reconciliation Act (OBRA) of 1990.

The Administration's preliminary scoring estimates of this bill are presented in the table below. Final scoring of this legislation may deviate from these estimates. If H.R. 831 were enacted, final OMB scoring estimates would be published within five days of enactment, as required by OBRA. The cumulative effects of all enacted legislation on direct spending and receipts will be reported to Congress at the end of the congressional session, as required by OBRA.

PAY-AS-YOU-GO ESTIMATES
(Receipts in millions)

(Note:

SE Tax = 25 percent tax deduction for self-employed persons.

FCC = Repeal of current tax treatment on sale of broadcast facilities, to minority-owned businesses.

EITC = Modification of the Earned Income Tax Credit.

Other = Change in Section 1033 of the Internal Revenue Code.)