SEC. 311. INCREASE IN DEDUCTION FOR HEALTH INSURANCE COSTS OF SELF-EMPLOYED
INDIVIDUALS.
Title[ Title III\Subtitle B Contents
Subtitle B--Increase in Deduction for Health Insurance Costs of Self-
Employed Individuals
(a) In General.--Paragraph (1) of section 162(l) is amended to read
as follows:
``(1) Allowance of deduction.--
``(A) In general.--In the case of an individual who
is an employee within the meaning of section 401(c)(1),
there shall be allowed as a deduction under this section
an amount equal to the applicable percentage of the
amount paid during the taxable year for insurance which
constitutes medical care for the taxpayer, his spouse,
and dependents.
``(B) Applicable percentage.--For purposes of
subparagraph (A), the applicable percentage shall be
determined under the following table:
``For taxable years be The applicable percentage is--
in calendar year--
1997.............................40 percent
1998 through 2002................45 percent
2003.............................50 percent
2004.............................60 percent
2005.............................70 percent
2006 or thereafter............80 percent.''.
(b) Exclusion for Amounts Received Under Certain Self-Insured
Plans.--Paragraph (3) of section 104(a) is amended by inserting ``(or
through an arrangement having the effect of accident or health
insurance)'' after ``health insurance''.
(c) Effective Date <<NOTE: 26 USC 104 note.>> .--The amendments
made by this section shall apply to taxable years beginning after
December 31, 1996.
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