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House GOP Forces Vote on Repealing Unfair ObamaCare Tax Hikes
GOP Measure Would Repeal ObamaCare Tax Hikes and Instead Help Small Businesses Create New Jobs
Washington
(Mar 24)
Today, House Republicans are forcing a vote on a motion to recommit that would repeal two new ObamaCare tax hikes on middle-class families and instead implement reforms that will help small businesses create jobs. This marks the first vote on the House floor to repeal President Obama’s government takeover of health care.
In all, this government takeover of health care breaks President Obama’s pledge not to raise taxes on middle-class families in at least a dozen ways. An army of new IRS employees will be hired to take this money out of the pockets of working families and small businesses in the middle of a deep recession, making it harder for them to save, invest or hire. House Republicans will take every opportunity to repeal this government takeover of health care so we can replace it with reforms that protect our economy and preserve our freedoms.
(Courtesy of Committee on Ways and Means Republicans)
SUMMARY OF REPUBLICAN MOTION TO RECOMMIT:
The Republican Motion to Recommit seeks to maintain tax relief for small businesses while repealing unpopular health care provisions that force middle class families to pay more in taxes and more for their health care. Specifically, the MTR:
Preserves small business tax cuts in the bill.
Strikes other provisions, including troubling tax increases and billions of dollars worth of new federal spending
Repeals two provisions of the recently-enacted health bill that limit the use of Flexible Spending Arrangements (FSAs) and Health Savings Accounts (HSAs)
Completely closes a tax loophole (Black Liquor) that could result in large, unintended tax benefits
PROVISIONS EXPLAINED:
TAX CUTS FOR BUSINESS -- The Motion to Recommit keeps the few provisions in the bill that would directly help small businesses, including a temporary provision giving taxpayers an exclusion from capital gains tax on investments in qualifying small businesses; new protections for small businesses from excessive penalties if they unknowingly fail to disclose certain information related to their participation in tax shelters; and a temporary increase in the amount of small business start-up costs that can be immediately expensed (rather than depreciated over several years).
These provisions would provide $3.588 billion of tax relief
REPEAL TWO TAX INCREASES ENACTED IN THE HEALTH BILL – The Motion to Recommit repeals two of the many objectionable tax increases in the just-enacted health overhaul that violate President Obama’s pledges that he would not raise taxes on Americans earning under $250,000 and that “you can keep what you have.”
The health overhaul bill placed a new cap on the maximum annual contribution to an FSA ($2,500 starting in 2011). The Motion to Recommit repeals this cap.
Ø FSAs – which are currently used by 35 million Americans – encourage consumers to be more aware of both the cost and quality of health care goods and services.
Ø By limiting the value of FSAs, the legislation undermines this important incentive for cost control for millions of Americans. Additionally, for many Americans with chronic conditions, FSAs present an opportunity to set money aside to cover the ongoing cost of care.
Ø Approximately 7 million Americans put more than $2,500 into their FSAs. According to the Employers Council on Flexible Compensation, the median income of an FSA holder in 2008 was just $55,000.
This provision would provide $15.6 billion in tax relief.
The health overhaul included a new ban starting in 2011 prohibiting holders of FSAs and HSAs (as well as Archer MSAs and Health Reimbursement Accounts) from using money from their accounts to purchase over-the-counter (OTC) medicines.
Ø Some OTC medicines, such as Claritin or Prilosec, can now be purchased over the counter for half the price of their prescription versions.
Ø By eliminating the ability to use an FSA or HSA for the purchase of such medicines, Democrats are encouraging the use of more expensive prescription drugs.
This provision would provide $5.5 billion in tax relief.
FULLY PAID FOR BY CLOSING A TAX LOOPHOLE – The Motion to Recommit includes a provision repealing the paper industry’s unintended eligibility for the cellulosic biofuel producers credit and retains the provision in the base bill closing another aspect of this loophole. The paper industry recognizes this was not intended and does not object to its repeal. This provision has passed the House several times before, most recently in the health reconciliation bill Sunday night, but has never become law. The House has a chance to use this money here to help small businesses and repeal two misguided taxes in the health bill. The alternative would be to see it used in reconciliation to fund billions of dollars in additional spending on Medicaid, a program states already cannot afford and which often offers its enrollees an empty promise, since fewer and fewer providers are willing to accept the program’s low reimbursements (the just enacted health bill will increase federal Medicaid spending by $395 billion; the reconciliation bill pending in the Senate would boost that figure to $434 billion).
This provision reduces the deficit by $25.4 billion
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