BILL NUMBER: AJR 8	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Mountjoy

                        FEBRUARY 20, 2003

   Assembly Joint Resolution No. 8--Relative to deductibility of
long-term care insurance premiums for purposes of federal income tax.


	LEGISLATIVE COUNSEL'S DIGEST


   AJR 8, as introduced, Mountjoy.  Federal income tax deductions:
long-term care insurance premiums.
   Existing federal income tax law limits the deduction of qualified
long-term care insurance premiums on the basis of, among other
things, the income of the taxpayer, the total annual amount paid for
medical expenses by the taxpayer, and the age of the individual
covered by the qualified long-term care insurance policy or contract.

   This measure would memorialize the Congress and the President to
enact legislation that would mandate the total deductibility of all
long-term care insurance premiums paid by a taxpayer regardless of
either the income of the taxpayer, the total amount paid by the
taxpayer for medical expenses, or the age of the individual covered
by the qualified long-term care insurance policy or contract.
   Fiscal committee:  no.




   WHEREAS, Long-term care insurance has a positive effect on the
federal government because the government will not have to pay
long-term care expenses for individuals who have long-term care
insurance policies or contracts; and
   WHEREAS, The average long-term care insurance premium is $2,000
per year and the average cost of staying in a long-term care facility
is $42,000 per year; and
   WHEREAS, Based on these comparisons and in order to encourage
individuals to purchase qualifying long-term care insurance policies
or contracts, it would be cost-effective for the federal government
to allow individuals to deduct the total cost of any premiums paid
for a qualifying long-term care insurance policy or contract in
computing his or her federal income tax liability; now, therefore, be
it
   Resolved by the Assembly and Senate of the State of California,
jointly, That the Legislature respectfully requests the President and
Congress of the United States to review federal income tax laws
applicable to deductibility of long-term care insurance premiums and
to enact new tax benefits that will allow individuals to deduct the
total cost of any premiums paid for a qualifying long-term care
insurance policy or contract regardless of either the income of a
taxpayer, the total annual amount paid by the taxpayer for medical
expenses, or the age of the individual covered by the qualified
long-term care insurance policy or contract; and be it further
   Resolved, That the Chief Clerk of the Assembly transmit copies of
this resolution to the President and Vice President, the Speaker of
the House of Representatives, the Chairpersons of the House and
Senate Committees on Aging, and to each Senator and Representative
from California in the Congress of the United States.