1-1 By: Nelson S.C.R. No. 37 1-2 (In the Senate - Filed March 8, 2001; March 13, 2001, read 1-3 first time and referred to Committee on Business and Commerce; 1-4 April 9, 2001, reported favorably by the following vote: Yeas 7, 1-5 Nays 0; April 9, 2001, sent to printer.) 1-6 SENATE CONCURRENT RESOLUTION 1-7 WHEREAS, Almost 90 percent of all health insurance is paid 1-8 for by and through employer programs, providing the majority of 1-9 American workers with affordable access to health care; and 1-10 WHEREAS, Generous federal tax code provisions that make 1-11 employee contributions to employer-provided health insurance fully 1-12 deductible from federal individual income taxes allow employees 1-13 participating in such plans to purchase the coverage they need in a 1-14 cost-effective manner; and 1-15 WHEREAS, Some employers benefit from the health insurance 1-16 they provide since the tax code also allows them to deduct the cost 1-17 of the health insurance they offer employees from their corporate 1-18 income taxes as a business expense; and 1-19 WHEREAS, Not everyone is fortunate enough to be able to 1-20 participate in an employer-provided health plan, and those who 1-21 purchase private health insurance do not receive tax breaks of any 1-22 kind; for these individuals, a dollar in pretax wages may buy only 1-23 50 cents' worth of health insurance after federal, state, and local 1-24 taxes are taken out; and 1-25 WHEREAS, Congress has responded to this issue with the 1999 1-26 Omnibus Appropriations Act, which gives a 60 percent tax deduction 1-27 for insurance expenses to those who are self-employed; this 1-28 deduction is scheduled to rise to 100 percent by 2003; and 1-29 WHEREAS, For individuals who purchase private health 1-30 insurance and bear the full cost of a policy without the benefit of 1-31 an employer's contributions, this deduction does little to make 1-32 that private insurance affordable, since tax deductions provide a 1-33 less substantial tax break than tax credits; while a tax deduction 1-34 is subtracted from a person's income when calculating taxes, a tax 1-35 credit is subtracted from the person's bottom line of taxes owed; 1-36 and 1-37 WHEREAS, Tax credits will give consumers more choice in 1-38 health plans because employees would no longer be limited to 1-39 insurance offered by employers; furthermore, consumers who bought 1-40 their own private health insurance could maintain their coverage 1-41 even if they changed jobs without any lapse in coverage; now, 1-42 therefore, be it 1-43 RESOLVED, That the 77th Legislature of the State of Texas 1-44 hereby respectfully urge the Congress of the United States to 1-45 provide tax credits to individuals buying private health insurance; 1-46 and, be it further 1-47 RESOLVED, That the Texas secretary of state forward official 1-48 copies of this resolution to the president of the United States, to 1-49 the speaker of the house of representatives and the president of 1-50 the senate of the United States Congress, and to all the members of 1-51 the Texas delegation to the congress with the request that this 1-52 resolution be officially entered in the Congressional Record as a 1-53 memorial to the Congress of the United States of America. 1-54 * * * * *