TaxNewsFlash-United States

November 6, 2009
No. 2009-502

PRINTABLE VERSION

Legislative Update: JCT Releases Revised Revenue Estimate of Revenue Provisions in House Health Care Reform Bill

The Joint Committee on Taxation today released a revised estimate of the revenue provisions in the House’s version of the health care reform bill, H.R. 3962, the Affordable Health Care for America Act.

The revenue estimate has been revised to take into consideration the addition of a provision that would amend the existing cellulosic biofuel producer income tax credit, and the modification of a provision that would repeal the worldwide interest allocation (the implementation of which was delayed until 2018 with the unemployment compensation legislation signed into law today, see TaxNewsFlash 2009-500).

For an electronic version of the JCT revised revenue estimate: JCX-48-09

Other provisions in the House’ health care reform bill would:

Impose a 5.4% income surtax on couples with adjusted gross income (AGI) of at least $1 million ($500,000 for single taxpayers) beginning in 2011
Impose a 2.5% excise tax on the first taxable sale of medical devices, for sales after December 31, 2012
Require information reporting on payments to corporations
Limit treaty benefits for certain deductible payments
Codify the doctrine of economic substance and impose penalties for underpayments

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