Congress allows self-employed taxpayers to deduct the cost of health insurance above the line (for AGI) because:

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This deduction provides a measure of equity between employees and the self-employed, as employees have their health insurance premiums paid for by their employers without having to pay taxes on those premiums, while the self-employed have to pay for their own health insurance premiums with after-tax dollars. Allowing self-employed taxpayers to deduct the cost of health insurance above the line helps to level the playing field and provide some equity between these two groups.

Congress Allows Self-Employed Taxpayers to Deduct the Cost of Health