ASSEMBLY RESOLUTION No. 26

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblywoman QUIGLEY and Assemblyman IMPREVEDUTO

An Assembly Resolution memorializing the United States Congress to amend the Internal Revenue Code to allow taxpayers to deduct health insurance costs.

Whereas, This nation needs to assist the American family in being able to afford the costs involved in proper health and medical insurance coverage; and

Whereas, The nation must pull together in order for the American family to have peace of mind when a child becomes ill or is injured and medical treatment is necessary; and

Whereas, The cost of medical treatment has risen dramatically over the past decade; and

Whereas, Employers have scaled back in offering employee benefits in order to save money and to become cost-efficient; and

Whereas, Employees are now being told that they have to contribute more out-of-pocket money to obtain decent health benefits insurance; and

Whereas, Approximately only one-third of all taxpayers itemize deductions; and

Whereas, Only a small portion of these taxpayers who itemize even include medical deductions because there is a federal threshold that must be met; and

Whereas, The federal tax code currently does not encourage taxpayers' to obtain health insurance coverage; now, therefore,

    Be It Resolved by the General Assembly of the State of New Jersey:

    1. This House memorializes the United States Congress to amend the federal Internal Revenue Code to put more emphasis on helping families by allowing an income deduction for the cost of health benefits insurance coverage in order for taxpayers to protect this families. This deduction would reduce taxable income and provide more after-tax income for the family, reducing financial pressures and allowing them to retain more of their own resources.

    2. Duly authenticated copies of this resolution, signed by the Speaker of the General Assembly and attested by the Clerk thereof, shall be transmitted to the President of the United States Senate, the Speaker of the House of Representatives, and every member of Congress elected from the State of New Jersey.

STATEMENT

    This resolution memorializes Congress to amend the Internal Revenue Code to help families afford health benefits insurance coverage. With only one-third of all taxpayers itemizing deductions and only a small portion of them able to meet the substantial federal threshold to deduct medical expenses, the Internal Revenue Code should be amended to allow all eligible tax filers to deduct the cost of health insurance premiums from their income. This will help the American family in this time of economic down-sizing and cost cutting. This resolution calls on Congress to help modify this tax situation affecting the American family.

Memorializes Congress to help families by amending the Internal Revenue Code to allow deductions for health insurance costs.