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H.R. 748: Middle Class Health Benefits Tax Repeal Act of 2019


The text of the bill below is as of Jul 22, 2019 (Placed on Calendar in the Senate).


II

Calendar No. 157

116th CONGRESS

1st Session

H. R. 748

IN THE SENATE OF THE UNITED STATES

July 18, 2019

Received; read the first time

July 22, 2019

Read the second time and placed on the calendar

AN ACT

To amend the Internal Revenue Code of 1986 to repeal the excise tax on high cost employer-sponsored health coverage.

1.

Short title

This Act may be cited as the Middle Class Health Benefits Tax Repeal Act of 2019.

2.

Repeal of excise tax on high cost employer-sponsored health coverage

(a)

In general

Chapter 43 of the Internal Revenue Code of 1986 is amended by striking section 4980I.

(b)

Conforming amendments

(1)

Section 6051 of such Code is amended—

(A)

by striking section 4980I(d)(1) in subsection (a)(14) and inserting subsection (g), and

(B)

by adding at the end the following new subsection:

(g)

Applicable Employer-Sponsored Coverage

For purposes of subsection (a)(14)—

(1)

In general

The term applicable employer-sponsored coverage means, with respect to any employee, coverage under any group health plan made available to the employee by an employer which is excludable from the employee’s gross income under section 106, or would be so excludable if it were employer-provided coverage (within the meaning of such section 106).

(2)

Exceptions

The term applicable employer-sponsored coverage shall not include—

(A)

any coverage (whether through insurance or otherwise) described in section 9832(c)(1) (other than subparagraph (G) thereof) or for long-term care,

(B)

any coverage under a separate policy, certificate, or contract of insurance which provides benefits substantially all of which are for treatment of the mouth (including any organ or structure within the mouth) or for treatment of the eye, or

(C)

any coverage described in section 9832(c)(3) the payment for which is not excludable from gross income and for which a deduction under section 162(l) is not allowable.

(3)

Coverage includes employee paid portion

Coverage shall be treated as applicable employer-sponsored coverage without regard to whether the employer or employee pays for the coverage.

(4)

Governmental plans included

Applicable employer-sponsored coverage shall include coverage under any group health plan established and maintained primarily for its civilian employees by the Government of the United States, by the government of any State or political subdivision thereof, or by any agency or instrumentality of any such government.

.

(2)

Section 9831(d)(1) of such Code is amended by striking “except as provided in section 4980I(f)(4)”.

(3)

The table of sections for chapter 43 of such Code is amended by striking the item relating to section 4980I.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2019.

3.

Budgetary effects

(a)

Statutory PAYGO scorecards

The budgetary effects of this Act shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010.

(b)

Senate PAYGO scorecards

The budgetary effects of this Act shall not be entered on any PAYGO scorecard maintained for purposes of section 4106 of H. Con. Res. 71 (115th Congress).

Passed the House of Representatives July 17, 2019.

Cheryl L. Johnson,

Clerk

July 22, 2019

Read the second time and placed on the calendar