Daily Tax Update - September 22, 2009

FINANCE MARK UP BEGINS – BAUCUS MAKES “SIGNIFICANT MODIFICATIONS”: Today, the Senate Finance Committee began marking up Chairman Baucus’ health care reform plan. In his opening statement, Baucus said that he would “make several significant modifications to the chairman’s mark.” Baucus continued, “These modifications will include ideas from a number of Senators on the Committee. These modifications will improve and strengthen the package. And now I look forward to our amendment process here in the committee.  Through this open and democratic process, I hope that we can improve the bill even further.”  Baucus added, “After that, I look forward to melding our bill with the Health Committee’s product. And I look forward to a constructive floor debate starting as early as next week.” Baucus is hopeful to finish the mark up by the end of this week. 

• Among the changes in the modified Chairman’s Mark is a provision that would increase the tax rate for the high cost insurance excise tax from 35 to 40 percent. The revised mark provides that the threshold amount ($8,000 for individual coverage and $21,000 for family coverage for 2013) is indexed to the Consumer Price Index for Urban Consumers, as determined by the Department of Labor beginning in 2014, plus one percent. The provision increases the threshold amount for retired individuals over the age of 55 by $750 for individual coverage and $2,000 for family coverage.
• Ranking Finance member Charles Grassley said, “It seems to me that some people in the Senate would rather have [health care reform legislation] done right now, than have it done right.” Grassley added, “It’s not too late to get this done right. We can stop at any time and refocus this effort. We can lower the spending in this bill. We can improve the quality of care with delivery system reforms that reward quality instead of quantity. We can focus on health care costs. We can lower costs with medical liability reform. We can fix the insurance market.”
• A summary of the modifications can be accessed here.  

TAX BILLS INTRODUCED SEPTEMBER 21^ST:
H.R.3607: To amend the Internal Revenue Code of 1986 to extend the funding and expenditure authority of the Airport and Airway Trust Fund, to amend title 49, United States Code, to extend authorizations for the airport improvement program, and for other purposes.
Sponsor: Rep Oberstar, James L. [MN-8] (introduced 9/21/2009)      Cosponsors (5)

H.R.3608: To amend the Internal Revenue Code of 1986 to codify the exclusion from gross income of medical care provided for Indians, and for other purposes.
Sponsor: Rep Becerra, Xavier [CA-31] (introduced 9/21/2009)      Cosponsors (18)

H.R.3609: To amend the Internal Revenue Code of 1986 to clarify the capital gain or loss treatment of the sale or exchange of mitigation credits earned by restoring wetlands.
Sponsor: Rep Melancon, Charlie [LA-3] (introduced 9/21/2009)      Cosponsors (1)

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE:
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