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Baucus Healthcare Revenue Options

[Please note: this report is from May 20, 2009. Nevertheless, it is still revealing what means the Senate Finance Committee and Mr. Baucus are considering to pay for their healthcare reform plans.]

From the Senate Finance Committee (a pdf file).

First, the table of contents:

Financing Comprehensive Health Care Reform: Proposed Health System Savings and Revenue Options

Senate Finance Committee

May 20, 2009

(Click to enlarge)

And here is the last section:

SECTION V: Administration’s Revenue Raising Proposals

The President has outlined a number of possible revenue raising provisions as part of the Administration’s Fiscal Year 2010 budget proposals. In Committee discussions on health care reform, the focus has been on health care-related program savings and revenue raising proposals. However, the Chairman desires to provide, for the information of Members and potential discussion, a list of the President’s Budget proposals.

Revenues Dedicated to the Health Reform Reserve Fund

1. Limit the Tax Rate at which Itemized Deductions Reduce Tax Liability to 28 Percent

2. Reduce the Tax Gap and Make Reforms

Expand Information Reporting
Require Information Reporting for Private Separate Accounts of Life Insurance Companies
Require Information Reporting on Payments to Corporations
Require a Certified Taxpayer Identification Number from Contractors and Allow Certain Withholding
Require Increased Information Reporting for Certain Government Payments for Property and Services
Increase Information Return Penalties Improve Compliance by Business
Require E-Filing by Certain Large Organizations
Implement Standards Clarifying when Employee Leasing Companies Can Be Held Liable for Their Clients’ Federal Employment Taxes

Strengthen Tax Administration
Allow Assessment of Criminal Restitution as Tax
Revise Offer-in-Compromise Application Rules
Expand IRS Access to Information in the National Directory of New Hires for Tax Administration Purposes
Make Repeated Willful Failure to File a Tax Return a Felony
Facilitate Tax Compliance with Local Jurisdictions
Extension of Statute of Limitations where State Tax Adjustment Affects Federal Tax Liability

Improve Investigative Disclosure Statute
Expand Required Electronic Filing by Tax Return Preparers Expand Penalties
Clarify That the Bad Check Penalty Applies to Electronic Checks and Other Payment Forms
Impose Penalty on Failure to Comply with Electronic Filing Requirements

3. Make Reforms to Close Tax Loopholes

Financial Institutions and Products
Require Accrual of Income on Forward Sale of Corporate Stock
Require Ordinary Treatment for Certain Dealers of Equity Options and Commodities
Modify Definition of Control for Purposes of the Section 249 Deduction Limit

Insurance Companies and Products
Modify Rules That Apply to Sales of Life Insurance Contracts
Modify Dividends-Received Deduction for Life Insurance Company Separate Accounts
Expand Pro Rata Interest Expense Disallowance for Corporate-Owned Life Insurance (COLI)

Tax Accounting Methods
Deny Deduction for Punitive Damages
Repeal Lower-of-Cost-or-Market Inventory Accounting Method

Modify Estate and Gift Tax Valuation Discounts and Make Other Reforms
Require Consistency in Value for Transfer and Income Tax Purposes
Modify Rules on Valuation Discounts
Require Minimum Term for Grantor Retained Annuity Trusts (GRATs)

4. Modify Alternative Fuel Mixture Credit

Other Revenue Raising Proposals

1. Other Revenue Changes and Loophole Closers

Reinstate Superfund Excise Taxes
Reinstate Superfund Environmental Income Tax
Tax Carried (Profit) Interests as Ordinary Income
Codify "Economic Substance" Doctrine
Repeal the Last-In, First-Out (LIFO) Method of Accounting for Inventories
Reform U.S. International Tax System
Reform Business Entity Classification Rules for Foreign Entities
Defer Deduction of Expenses, Except R&E Expenses, Related to Deferred Income
Reform Foreign Tax Credit: Determine the Foreign Tax Credit on a Pooling Basis
Reform Foreign Tax Credit: Prevent Splitting of Foreign Income and Foreign Taxes
Limit Shifting of Income Through Intangible Property Transfers
Limit Earnings Stripping by Expatriated Entities
Prevent Repatriation of Earnings in Certain Cross-Border Reorganizations
Repeal 80/20 Company Rules
Prevent the Avoidance of Dividend Withholding Taxes
Modify Tax Rules for Dual Capacity Taxpayers
Combat Under-Reporting of Income Through Use of Accounts and Entities in Offshore Jurisdictions
Require Greater Reporting by Qualified Intermediaries Regarding U.S. Account Holders
Require Withholding on Payments of FDAP Income Made Through Nonqualified Intermediaries
Require Withholding on Gross Proceeds Paid to Certain Nonqualified Intermediaries
Require Reporting of Certain Transfers of Money or Property to Foreign Financial Accounts
Require Disclosure of FBAR Accounts to be Filed with Tax Return Require Third-Party Information Reporting Regarding the Transfer of Assets to Foreign Financial Accounts and the Establishment of Foreign Financial Accounts
Require Third-Party Information Reporting Regarding the Establishment of Offshore Entities
Negative Presumption for Foreign Accounts with Respect to Which an FBAR has not Been Filed
Negative Presumption Regarding Failure to File an FBAR For Accounts with Nonqualified Intermediaries
Negative Presumption Regarding Withholding on FDAP Payments to Certain Foreign Entities
Extend Statute of Limitations for Certain Reportable Cross-Border Transactions and Foreign Entities
Double Accuracy-Related Penalties on Understatements Involving Undisclosed Foreign Accounts
Improve the Foreign Trust Reporting Penalty
Require Information Reporting for Rental Property Expense Payments
Eliminate Oil and Gas Company Preferences
Levy Tax on Certain Offshore Oil and Gas Production
Repeal Credit for Enhanced Oil Recovery (EOR) Projects
Repeal Credit for Production from Marginal Wells
Repeal Expensing of Intangible Drilling Costs
Repeal Deduction for Tertiary Injectants
Repeal Passive Loss Exception for Working Interests in Oil and Gas Properties
Repeal Percentage Depletion
Repeal Domestic Manufacturing Deduction for Oil and Gas Production
Increase the Amortization Period for Geological and Geophysical Costs to Seven Years
Eliminate the Advanced Earned Income Tax Credit

2. Upper-Income Tax Provisions Dedicated to Deficit Reduction

Reinstate the 39.6-Percent Rate
Reinstate the 36-Percent Rate for Taxpayers with Income over $250,000 (Married Filing a Joint Return) and $200,000 (Single)
Reinstate the Limitation on Itemized Deductions for Taxpayers with Income over $250,000 (Married Filing a Joint Return) and $200,000 (Single)
Reinstate the Personal Exemption Phase-Out (PEP) for Taxpayers with Income over $250,000 (Married Filing a Joint Return) and $200,000 (Single)
Impose a 20-Percent Rate on Dividends and Capital Gains for Taxpayers with Income over $250,000 (Married Filing a Joint Return) and $200,000 (Single)

3. User Fees

Preserve Cost-Sharing of Inland Waterways Capital Costs

4. Other Initiatives

Levy Payments to Federal Contractors with Delinquent Tax Debt Improve Debt Collection Administrative Procedures
Increase Levy Authority to 100 Percent for Vendor Payments

Mind you, this is supposed to be a healthcare reform bill, and not a tax bill.

This article was posted by Steve on Wednesday, September 9th, 2009. Comments are currently closed.

16 Responses to “Baucus Healthcare Revenue Options”

  1. pdsand says:

    Hmm, if this health reform reserve fund gets funded, and healthcare dies, might we be looking at a health dividend to rival the “peace dividend”? I propose we spend any such dividend on nuclear weapons.

  2. Rusty Shackleford says:

    Rush has been talking about this for most of his show.

    One who has a mind and working brain, had to ask….”Well, how are they gonna pay for all this spending?”

    Well—–there it is. But, it most likely won’t even cover but a fraction of it.

    So let’s ask ourselves what’s REALLY going on?

  3. bill says:

    The healthcare bill has never been about what is best for America, it’s about people control and having another “Christmas tree bill” that you can hang every ‘tax it ornament’ hung on it imaginable.

  4. Georgfelis says:

    Hm. “Deny Deduction for Punitive Damages…”

    So if you are sued, and slammed with a monster payout, you have to pay taxes on the Gross of the payout *before* it goes to the trial lawyer and their sucker..um..I mean client. (i.e. a $1mil Punitive Damages payout will now cost your company $1.2mil or more depending on your tax rate)

    Behold the Democrat version of Tort Reform. Soaking the companies for even *more* money. Yeah, that’ll help.

  5. 64dodger says:

    Eliminate the Advanced Earned Income Tax Credit

    This does nothing more than shift the tax credit from one year to another.

  6. proreason says:

    The real agenda is becoming more and more obvious.

    The talk show guys have been saying it for months, and we have been saying it for months.

    The name of the whatever-the-bill-is has nothing to do with it. The alleged purpose has nothing to do with it. The alleged benefits have nothing to do with it. The alleged problem being solved has nothing to do with it.

    It’s all about power. Pure and simple. Power for them, over us.

    And when they gain power over us, there is only one direction for our freedoms and our lives to go. Downhill, as fast as they can manage it. Because ever morsel of food we put in out mouths of our own volition is one less iota of power they have.

    Even if they call it the Horseshit Reduction Ombnibus Act, it’s all about and only about power.

  7. BigOil says:

    Just imagine the expansion of the IRS necessary to implement and enforce this tax smorgasbord. The IRS would rival the postal service in size.

  8. BBFmail says:

    Some other things to remember about Baucus! Earlier…Baucus and company decided that the way to pay for the healthcare bill was to tax all employee provided healthcare….with one exception…and that was union members:

    Union members and their families who receive healthcare benefits paid for by their employers would be exempted from a new tax on healthcare under one option being proposed by Sen. Max Baucus (D-Mt), according to a report by the Fox Business Channel’s Peter Barnes.

    Baucus’s plan would tax health care benefits to raise from $161.9 billion to $418 billion over ten years to fund the nationalized “government provider” of health care benefits President Obama and Democrats want. Peter Barnes told me, “There would be preferential treatment for unions” under one version of the Baucus proposal.

    As shown on page 3 of the Baucus outline published by Fox News under two of Baucus’ four options, healthcare benefits provided under collective bargaining agreements dated on or before January 1, 2013 would be exempt from the tax.

    • proreason says:

      In addition, the House Bill provide 10 billion to the UAW to pay for medical care for retired member.

      You can’t get much closer to outright bribery than this crap.

      Anybody that votes for this cow patty needs to be slapped in jail for life.

  9. VMAN says:

    Power grab power grab power grab!!! Please if there is anyone out there with influence please fight these people with everything you have or you may not have it anymore.

  10. Hey, Is Charlie Rangal shaking in his boots over the harsher penalties… Right!

    Bring it on! Mostly Democrats are tax cheats. Geitner and the boys might be in for a rough ride.

  11. TwilightZoned says:

    The morons in DC are so far removed from anything in the real world, except power which = control. Has any one of them ever run a business? The odds have to high against it. Most of them are lawyers who couldn’t earn a real living except by sponging off the tax payers. Send ’em packing in 2010!

  12. Colonel1961 says:

    Repeal the deduction for tertiary injectants? Over my dead body…

    • proreason says:

      I might have injected one of those tertiaries a few years ago Colonel.

      What country are they from?

  13. MinnesotaRush says:

    The skunk’s stripe continues to get bigger.

    It ALL stinks!


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