The pundit class in Alabama said it couldn't be done. Last week in a special session of the Alabama Legislature a bill giving small business tax incentives for health insurance passed. The pundits were indeed pleasantly surprised.

Gov. Bob Riley deserves a lot of credit for advocating, encouraging and supporting a sound, practical reform that will help small businesses afford health insurance coverage for their employees. Fifty-two percent of individuals working for small businesses with less than 25 employees are uninsured.

Small businesses currently can deduct from their taxable state income 100 percent of the cost of providing insurance. The new legislation signed by the governor will now allow small businesses to deduct 150 percent of the cost.

In Alabama, employees currently can deduct 100% of the cost of their health insurance premiums, if medical costs exceed 4 percent of their taxable income. Now, the new law allows employees to deduct from their taxable state income an additional 50% of their premiums.

While not on the scale of amazing health transformation of our neighboring state of Georgia, this was a big step forward and is the first of practical, market-based powerful step into the right direction.

Oh, there was a little frivolity associated with this bill. When it became clear that this was an essential and sound measure that would help tens of thousands of small Alabama businesses (90% favored this measure and will use the new tax incentive for the benefit of their employees) the Democrats in the Legislature promptly "appropriated" the bill from its long time Republican sponsor and it magically became their bill. Isn't the legislative process wonderful!

Seriously, Republican Gov. Bob Riley and his policy team did an excellent in making a compelling case for this much needed reform.