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GARN URGES BUSH TO BACK REPEAL OF RULE OPPOSED BY BUSINESSES

SHARE GARN URGES BUSH TO BACK REPEAL OF RULE OPPOSED BY BUSINESSES

Sen. Jake Garn, R-Utah, is urging President Bush to support the repeal of a controversial tax rule that Utah business owners report is "an administrative nightmare."

He wants to repeal Section 89 of the Internal Revenue Code, which requires employers to broaden their health-care coverage to all employees. It was designed to ensure benefit plans did not favor just certain employees such as owners, officers or highly paid workers.However, Garn said the numerous reports and paperwork required make it "intrusive, unrealistically complex and ironically may discourage employers from providing the very benefits it seeks to protect."

Garn said he has received hundreds of letters complaining about the rule. One from a gift-card store owner said, "It takes a great deal of our time just to fill out the required reports and answer the numerous inquiries requested. We have over 50 reports to file each quarter. We cannot afford to comply with Section 89."