Number: RL33311
Title: Federal Tax Treatment of Health Insurance Expenditures by the Self-Employed: Current Law and Issues for Congress
Authors: Gary Guenther, Government and Finance Division 
Abstract: Current federal tax law allows self-employed individuals to deduct from their gross income the entire amount of their spending on health insurance for themselves and their spouses and dependents. This report explains how these expenditures are treated under the federal tax code, reviews the legislative history of the deduction, assesses its effectiveness as a policy tool for expanding access to health care for the self-employed, describes proposals in the 110th Congress to modify the deduction, and discusses policy issues it raises.
Pages: 11
Date: February 22, 2008