JCT Estimates Budget Effects Of Archer Amendment To Health Care Act.
JCX-6-96
- Institutional AuthorsJoint Committee on Taxation
- Cross-ReferenceFor full text of JCX-4-96, a description of H.R. 3103, see Doc 96-
8332 (27 pages), 96 TNT 55-33, or H&D, Mar. 19, 1996, p. 3299; for
related news coverage, see Doc 96-8342 (3 pages), 96 TNT 55-1, or
H&D, Mar. 19, 1996, p. 3272.
For other related text and news coverage, see the Tax Notes Today
Table of Contents for Mar. 20, 1996. - Subject Area/Tax Topics
- Index Termshealth care and insurance, self-employed personslegislation, tax
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 96-8407 (2 pages)
- Tax Analysts Electronic Citation96 TNT 56-33
The Joint Committee on Taxation has released tables (JCX-6-96) estimating the budget effects of H.R. 3103, the "Health Insurance Availability and Affordability Act of 1996," taking into account an amendment offered by House Ways and Means Chair Bill Archer, R-Texas, to accelerate the rise in the percentage of health insurance costs that would be deductible for the self-employed. (For full text of JCX-4-96, a description of H.R. 3103, see Doc 96-8332 (27 pages), 96 TNT 55-33
, or H&D, Mar. 19, 1996, p. 3299; for related news coverage, see Doc 96-8342 (3 pages), 96 TNT 55-1, or H&D, Mar. 19, 1996, p. 3272.)
====== FULL TEXT ======
JOINT COMMITTEE ON TAXATION
MARCH 18, 1996
JCX-6-96
ESTIMATED BUDGET EFFECTS OF ITEMS CONTAINED IN AN AMENDMENT IN THE
NATURE OF A SUBSTITUTE TO H.R. 3103 TO BE OFFERED BY CHAIRMAN ARCHER
ON TUESDAY, MARCH 19, 1996
(For Ways and Means Markup on Tuesday, March 19, 1996)
Fiscal Years 1996-2002
[Millions of Dollars]
_____________________________________________________________________
Provision 1996 1997 1998 1999 2000
_____________________________________________________________________
1. Medical Savings Accounts: (a)
maximum contribution limit
($2,000 single and $4,000
family); (b) tax-free build up
of earnings; (c) definition of
qualified medical expenses; (d)
post-death distribution rules;
and (e) clarification relating to
capitalization of policy
acquisition costs (Effective:
tyba 12/31/96) -- -134 -246 -290 -340
2. Increase the self-employed health
insurance deduction (35% in 1998;
40% in 1999 through 2001; 45%
in 2002; and 50% in 2003 and
thereafter (Effective: tyba
12/31/97) -- -- -36 -153 -250
3. Exemption from income tax for
State-sponsored organizations
providing health coverage for
health-risk individuals
(Effective: tyba 12/31/96) -- -1 -1 -1 -2
4. COBRA tax penalties
(Effective: 1/1/98) --- Negligible Revenue Effect ---
5. Long-Term Care Provisions:
(a) deduction for long-term care
premiums; (b) exclude employer
contributions for long-term care
insurance from gross income; and
(c) allow long-term care premiums
to be deducted subject to the
self-employed health care rules
(Effective: tyba 12/31/96) -- -35 -227 -266 -305
6. Tax treatment of accelerated
death benefits under life
insurance contracts
(Effective: tyba 12/31/96) -- -10 -107 -166 -214
7. Changes in Medicare spending
(health-care fraud and abuse
prevention) /1/ (Effective:
10/1/97) -- -310 120 490 740
8. Repeal of section 593 with
residential loan test for 1996
and 1997 (Effective: tyba
12/31/95) 63 95 216 280 277
9. EIC compliance proposal /2/
(Effective: tyba 12/31/95) 13 254 264 267 274
_____________________________________________________________________
NET TOTAL 76 -141 -17 161 180
_____________________________________________________________________
(table continued)
_____________________________________________________________________
Provision 2001 2002 1996-00 1996-02
_____________________________________________________________________
1. Medical Savings Accounts: (a)
maximum contribution limit
($2,000 single and $4,000
family); (b) tax-free build up
of earnings; (c) definition of
qualified medical expenses; (d)
post-death distribution rules;
and (e) clarification relating to
capitalization of policy
acquisition costs (Effective:
tyba 12/31/96) -369 -399 -1,010 -1,778
2. Increase the self-employed health
insurance deduction (35% in 1998;
40% in 1999 through 2001; 45%
in 2002; and 50% in 2003 and
thereafter (Effective: tyba
12/31/97) -272 -347 -439 -1,058
3. Exemption from income tax for
State-sponsored organizations
providing health coverage for
health-risk individuals
(Effective: tyba 12/31/96) -2 -2 -5 -8
4. COBRA tax penalties
(Effective: 1/1/98) --- Negligible Revenue Effect ---
5. Long-Term Care Provisions:
(a) deduction for long-term care
premiums; (b) exclude employer
contributions for long-term care
insurance from gross income; and
(c) allow long-term care premiums
to be deducted subject to the
self-employed health care rules
(Effective: tyba 12/31/96) -341 -377 -833 -1,551
6. Tax treatment of accelerated
death benefits under life
insurance contracts
(Effective: tyba 12/31/96) -265 -316 -497 -1,077
7. Changes in Medicare spending
(health-care fraud and abuse
prevention) /1/ (Effective:
10/1/97) 750 810 1,040 2,600
8. Repeal of section 593 with
residential loan test for 1996
and 1997 (Effective: tyba
12/31/95) 272 260 931 1,462
9. EIC compliance proposal /2/
(Effective: tyba 12/31/95) 278 285 1,072 1,634
_____________________________________________________________________
NET TOTAL 51 -86 259 224
_____________________________________________________________________
Joint Committee on Taxation
NOTE: Details may not add to totals due to rounding.
Legend for "Effective" column:
tyba = taxable years beginning after
FOOTNOTES TO TABLE
/1/ Estimates provided by the Congressional Budget Office.
/2/ Included in this estimate are decreases in EIC outlays of
$11 million for FY 1996, $224 million for FY 1997, $233 million for
FY 1998, $237 million for FY 1999, $243 million for FY 2000, $246
million for FY 2001, and $252 million for FY 2002.
END OF FOOTNOTES
- Institutional AuthorsJoint Committee on Taxation
- Cross-ReferenceFor full text of JCX-4-96, a description of H.R. 3103, see Doc 96-
8332 (27 pages), 96 TNT 55-33, or H&D, Mar. 19, 1996, p. 3299; for
related news coverage, see Doc 96-8342 (3 pages), 96 TNT 55-1, or
H&D, Mar. 19, 1996, p. 3272.
For other related text and news coverage, see the Tax Notes Today
Table of Contents for Mar. 20, 1996. - Subject Area/Tax Topics
- Index Termshealth care and insurance, self-employed personslegislation, tax
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 96-8407 (2 pages)
- Tax Analysts Electronic Citation96 TNT 56-33
