By Maxey H.C.R. No. 83 77R1852 JXC-D HOUSE CONCURRENT RESOLUTION 1-1 WHEREAS, Almost 90 percent of all health insurance is paid 1-2 for by and through employer programs, providing the majority of 1-3 American workers with affordable access to health care; and 1-4 WHEREAS, Generous federal tax code provisions that make 1-5 employee contributions to employer-provided health insurance fully 1-6 deductible from federal individual income taxes allow employees 1-7 participating in such plans to purchase the coverage they need in a 1-8 cost-effective manner; and 1-9 WHEREAS, Some employers benefit from the health insurance 1-10 they provide since the tax code also allows them to deduct the cost 1-11 of the health insurance they offer employees from their corporate 1-12 income taxes as a business expense; and 1-13 WHEREAS, Not everyone is fortunate enough to be able to 1-14 participate in an employer-provided health plan, and those who 1-15 purchase private health insurance do not receive tax breaks of any 1-16 kind; for these individuals, a dollar in pretax wages may buy only 1-17 50 cents' worth of health insurance after federal, state, and local 1-18 taxes are taken out; and 1-19 WHEREAS, Congress has responded to this issue with the 1999 1-20 Omnibus Appropriations Act, which gives a 60 percent tax deduction 1-21 for insurance expenses to those who are self-employed; this 1-22 deduction is scheduled to rise to 100 percent by 2003; and 1-23 WHEREAS, For individuals who purchase private health 1-24 insurance and bear the full cost of a policy without the benefit of 2-1 an employer's contributions, this deduction does little to make 2-2 that private insurance affordable, since tax deductions provide a 2-3 less substantial tax break than tax credits; while a tax deduction 2-4 is subtracted from a person's income when calculating taxes, a tax 2-5 credit is subtracted from the person's bottom line of taxes owed; 2-6 and 2-7 WHEREAS, Tax credits will give consumers more choice in 2-8 health plans because employees would no longer be limited to 2-9 insurance offered by employers; furthermore, consumers who bought 2-10 their own private health insurance could maintain their coverage 2-11 even if they changed jobs without any lapse in coverage; now, 2-12 therefore, be it 2-13 RESOLVED, That the 77th Legislature of the State of Texas 2-14 hereby respectfully urge the Congress of the United States to 2-15 provide tax credits to individuals buying private health insurance; 2-16 and, be it further 2-17 RESOLVED, That the Texas secretary of state forward official 2-18 copies of this resolution to the president of the United States, to 2-19 the speaker of the house of representatives and the president of 2-20 the senate of the United States Congress, and to all the members of 2-21 the Texas delegation to the congress with the request that this 2-22 resolution be officially entered in the Congressional Record as a 2-23 memorial to the Congress of the United States of America.