Health Insurance Tax Break Passes House
18 02 08 - 11:43
Feb 18, 2008 by Elizabeth Ziegler
(KCPW News) Most small business owners, part-time workers, freelancers, and other contract employees must pay all of their health-care premiums out of their own pocket. A bill gaining widespread support in the Legislature gives these people a tax break.
"This is an attempt to achieve some parity and some fairness in the tax code. As well as, perhaps we can allow some people with this modest effort, to afford health insurance and perhaps we can move some people off the uninsured rolls," says Representative James Dunnigan, aTaylorsville insurance agency owner who's running House Bill 351.
Dunnigan's bill allows for a tax credit of up to 5 percent of individual and family health premiums, which are paid with after-tax dollars. Whereas employer-sponsored health-insurance premiums are paid with pre-tax dollars, Dunnigan says. This saves employers money, and he says those who don't have the option of signing up for a group health plan through their employer should also receive this benefit. Representative Dave Clark says the tax credit is a good example of the type of market-based health-insurance reform encouraged in his widely lauded Health Care Reform Bill - HB 133.
"The language and the intent in this is the same as in the Health Reform Bill," Clark says, "absolute, complete conformity and support."
HB 351 passed the House by a 70 to 1 vote. Representative Larry Wiley, a democrat from West Valley City, was the only "No" vote. The bill now moves to the Senate for consideration. Click here to read the full text of the bill and listen to the committee and House floor debates.