On the first day of the 109th Congress Rep. Cliff Stearns (R-Ocala) reintroduced two bills providing important tax relief for the American people.  Stearns offered the Health Care Tax Deduction Act and the Simple Savings Tax Relief Act. "I believe these bills are important to meeting the health needs and the savings needs of millions of Americans, and I am proud to offer these bills on the first day of the 109th Congress," said Stearns.

The Health Care Deduction Act provides a tax deduction for amounts paid for health insurance premiums and unreimbursed prescription drugs.  Explained Stearns, "This would provide much-needed relief to individuals struggling with the high cost of health insurance and prescription drugs through a tax deduction, and tax parity with those who have employer-provided tax-deductible health insurance.  It would apply to all IRS-defined health insurance premiums:  an HMO, PPO, a traditional indemnity plan, a new HSA, and also long-term care premiums.  In addition, this deduction would be available to all filers."

The Simple Savings Tax Relief Act eliminates the taxation of interest earned in savings accounts, such as passbook savings accounts or bank certificates of deposit.  "This measure would end a punitive tax, and would especially benefit low and middle-income earners who are more likely to rely on bank accounts as their form of savings," said Stearns.  "Ultimately, it will contribute toward the goal of encouraging individuals to take charge of their own financial destiny."