Clinton’s OK Gives Tax Break to Self-Employed
Expressing regret that he lacks the power to veto elements of legislation, President Clinton signed into law Tuesday a bill giving self-employed people the right to deduct health insurance costs from their taxes.
His objection: The bill gives media mogul Rupert Murdoch a huge tax break.
“If we’d had the line-item veto it would have been a different story,” Clinton said.
The new law permits some 3.2 million people to claim a 25% deduction for health insurance premiums they paid in 1994. The benefit will increase permanently to 30% this year.
The bill also repeals current tax treatment of the sale or exchange of radio and television stations and cable television systems to minority-owned businesses.
The provision is expected to reap a $63-million benefit for Murdoch, who has a contract to sell Atlanta station WATL-TV for $150 million to Qwest Inc., which is 55% owned by minorities, including Quincy Jones, and 45% owned by the Tribune Co.
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