Medical and Legal Professional Liability Insurance Tax Equity Act of 1979
Latest action. Referred to Senate Committee on Finance.
Medical and Legal Professional Liability Insurance Tax Equity Act of 1979 - Amends the Internal Revenue Code to allow a taxpayer an income tax deduction for cash amounts paid to a medical or legal malpractice liability trust or to a captive insurer (wholly or partially-owned or controlled by the taxpayer) of the taxpayer for malpractice insurance. Limits the amount of such deduction to the smaller of: (1) five percent of the taxpayer's gross income from the date of medical or legal services; (2) the amount which, when added to the sum of the balance of the taxpayer's malpractice liability trust and the net contributions of the taxpayer to his captive insurer, equals 15 percent of the taxpayer's yearly gross receipts from the sale of medical or legal services; or (3) $100,000. Disallows deductions for any malpractice liability loss except to the extent that such loss exceeds amounts in the malpractice liability trust. Provides that amounts in a malpractice liability trust which are used for purposes other than to satisfy malpractice claims shall be included in the taxpayer's gross income for the taxable year, and the income tax of the taxpayer shall be increased by ten percent of the amount improperly used. Defines a "malpractice liability trust" as any trust: (1) which is established in writing by the taxpayer under the laws of any State; (2) the trustee of which is a bank or a competent individual; (3) the exclusive purposes of which are to satisfy malpractice claims and to pay the administrative cost of operating a trust; and (4) the assets of which will not be commingled with any other property and may not be borrowed or used as security for a loan. Limits investment of trust assets to: (1) public debt securities of the United States; (2) State or local obligations which are not in default; or (3) time or demand deposits in certain financial institutions. Treats product liability loss reserves as amounts accumulated for the reasonably anticipated needs of a business, for purposes of the accumulated earnings tax.
Written by analysts at the Congressional Research Service and published on Congress.gov, not by Civibrief. Summarized at the "Introduced in Senate" stage on April 10, 1979. It describes the bill, it is not the legal text.
Where is it in the process, and what happens next?
4 steps remain before this bill could become law.
The record's latest action, on April 10, 1979: Referred to Senate Committee on Finance.
- Clearing the committees it was referred to, and being scheduled for a floor vote
- Passage by the Senate
- Passage by the House
- The President's signature. If the President vetoes it, two-thirds of both chambers must vote to override.
How likely is it to become law?
Civibrief does not forecast outcomes and this page has no opinion about this one. What the record supports is a base rate, which is a fact about the whole pile, not a prediction about this measure.
In the 96th Congress (1979-80), 613 of the 12,581 bills and joint resolutions introduced became law, about 4.9 percent. That count covers every measure at every stage, including the many that never left committee.
This one is not there yet: 4 steps are still outstanding, listed above.
Has anyone actually voted on it?
No. No roll call in this Congress cites this measure. That is the ordinary outcome: most measures never reach a recorded floor vote, and a committee ends most of them simply by not acting.
A vote is not the only thing that happens to a measure. Hearings, markups, and referrals are all recorded actions, and none of them is a vote of the full chamber.
Who is behind it?
CHARLES MATHIAS (R-MD) introduced it on April 10, 1979. No cosponsors are recorded.
Cosponsoring is a formal signature on the text. It is not a commitment to vote for the measure, it does not bind anyone's party, and a long list of cosponsors is a measure of attention rather than of prospects.
How long has it been in play?
It was introduced on April 10, 1979, 17320 days ago. The most recent recorded action was 17320 days ago, on April 10, 1979.
Measures do not carry over. Anything the 96th Congress has not finished by January 3, 1981 dies when the term ends, and has to be introduced again from the start in the next Congress.
Every answer above is assembled from this measure's own record on Congress.gov and from published counts of what Congress has passed before. Civibrief does not predict outcomes and takes no position on any measure.
Vote history
- SenateIn committee, no floor vote yet
- HouseAwaits Senate passage
- PresidentAwaits both chambers