Daily Tax Update - September 16, 2009

BAUCUS INTRODUCES $856 BILLION HEALTH CARE REFORM CHAIRMAN’S MARK: Today, Senate Finance Committee Chairman Max Baucus introduced his Chairman’s Mark, “America’s Health Future Act of 2009.” The mark is similar to a proposal Baucus released earlier this month and is estimated to cost $856 billion over ten years. Baucus’ plan calls for the creation of private, nonprofit health insurance cooperatives to compete with private insurers, instead of a government-run “public” insurance option. The plan would be paid for with $507 billion in cuts to government health programs and $349 billion in new taxes and fees. Senate Majority Leader Reid said that he wants to get a bill to the Senate floor by September 28.

• The bill is funded through several revenue raisers and fees, including a high-cost insurance (“Cadillac plans”) excise tax that would levy a non-deductible excise tax of 35% on insurance companies and plan administrators for any health insurance plan with a yearly premium above the threshold amount of $8,000 for individual and $21,000 for family plans. The excise tax would be levied on the amount of the premium in excess of the threshold. The tax would apply to self-insured plans and plans sold in the group market, but not to plans sold in the individual market. The threshold would be indexed for inflation, and a transition rule would increase the threshold for the 17 highest cost states for the first three years. The excise tax on Cadillac plans would raise almost $215 billion.
• The bill would also require corporate information reporting, which would require businesses that pay any amount greater than $600 during the year to corporate providers of property and services to file an information report with each provider and with the IRS. Information reporting is already required on payments for services to non-corporate providers. This would apply to payments made after December 31, 2011. 
• Additionally, the bill imposes fees on pharmaceutical and medical device manufacturers and health insurance providers.
• A summary can be accessed here. 
• The revenue estimates can be accessed here. 
• Ranking member Charles Grassley and the three other Republicans negotiators did not sign onto the bill.  Grassley said, “Unfortunately, we're operating under an artificial deadline set by the Democratic leadership and the White House.” Grassley continued, “I'm disappointed because it looks like we're being pushed aside by the Democratic leadership so the Senate can move forward on a bill that, up to this point, does not meet the shared goals for affordable, accessible health coverage that we set forth when this process began.” Grassley added, “On top of all that, there's no guarantee that a Finance Committee bill, even if it becomes bipartisan, will stay that way after it leaves the committee.”

TAX BILLS INTRODUCED SEPTEMBER 15^TH:
H.R.3568: To amend the Internal Revenue Code of 1986 to encourage charitable contributions of real property for conservation purposes by Native Corporations.
Sponsor: Rep Young, Don [AK] (introduced 9/15/2009)      Cosponsors (None)

H.R.3573: To amend the Internal Revenue Code of 1986 to prevent a change in residency as a result of extended official duty in the uniformed services, Foreign Service, or intelligence community from triggering the repayment provisions of the first time homebuyer credit, and for other purposes.
Sponsor: Rep Blumenauer, Earl [OR-3] (introduced 9/15/2009)      Cosponsors (None)

S.1673: A bill to amend the Internal Revenue Code of 1986 to encourage charitable contributions of real property for conservation purposes by Native Corporations.
Sponsor: Sen Begich, Mark [AK] (introduced 9/15/2009)      Cosponsors (1)

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE:
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