I 112th CONGRESS 2d Session H. R. 6088 IN THE HOUSE OF REPRESENTATIVES July 9, 2012 Mr. Schweikert introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To repeal certain tax increases enacted as part of health care reform.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Total Repeal of the Unfair Taxes on Healthcare Act of 2012 or as the TRUTH Act of 2012 . (b)

Table of contents

The table of contents of this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Repeal of excise tax on comprehensive health plans. Sec. 3. Repeal of surtax on investment income. Sec. 4. Repeal of disqualification of expenses for over-the-counter drugs under health flexible spending arrangements and health savings accounts. Sec. 5. Repeal of increase in tax on nonqualified distributions from health savings accounts. Sec. 6. Repeal of limitation on health flexible spending arrangements under cafeteria plans. Sec. 7. Repeal of increased threshold for itemized deduction for medical expenses. Sec. 8. Repeal of excise tax on indoor tanning services. Sec. 9. Repeal of individual health insurance mandate. Sec. 10. Repeal of employer health insurance mandate. Sec. 11. Repeal of excise tax on medical devices. Sec. 12. Repeal of annual fee on branded prescription drug manufacturers. Sec. 13. Repeal of annual fee on health insurance providers. Sec. 14. Repeal of study and report on repealed provisions.

2.

Repeal of excise tax on comprehensive health plans

Chapter 43 of the Internal Revenue Code of 1986 is amended by striking section 4980I (and by striking the item relating to such section in the table of sections for such chapter).

3.

Repeal of surtax on investment income

(a)

In general

Subtitle A of the Internal Revenue Code of 1986 is amended by striking chapter 2A and by striking the item relating to chapter 2A from the table of chapters for such subtitle. (b)

Conforming amendments

Section 6654 of such Code is amended— (1)in subsection (a), by striking the tax under chapter 2, and the tax under chapter 2A and inserting and the tax under chapter 2, and (2)in subsection (f)— (A)by striking plus at the end of paragraph (2) and inserting minus, and (B)by striking paragraph (3) and redesignating paragraph (4) as paragraph (3). (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2012.

4.

Repeal of disqualification of expenses for over-the-counter drugs under health flexible spending arrangements and health savings accounts

(a)

Health flexible spending arrangements and health reimbursement arrangements

Section 106 of the Internal Revenue Code of 1986 is amended by striking subsection (f). (b)

HSAs

Subparagraph (A) of section 223(d)(2) of such Code is amended by striking the last sentence. (c)

Archer MSAs

Subparagraph (A) of section 220(d)(2) of such Code is amended by striking the last sentence. (d)

Effective dates

(1)

Reimbursements

The amendment made by subsection (a) shall apply to expenses incurred with respect to taxable years beginning after December 31, 2010. (2)

Distributions from savings accounts

The amendments made by subsections (b) and (c) shall apply to amounts paid with respect to taxable years beginning after December 31, 2010.

5.

Repeal of increase in tax on nonqualified distributions from health savings accounts

(a)

HSAs

Section 223(f)(4)(A) of the Internal Revenue Code of 1986 is amended by striking 20 percent and inserting 10 percent. (b)

Archer MSAs

Section 220(f)(4)(A) of such Code is amended by striking 20 percent and inserting 15 percent. (c)

Effective date

The amendments made by this section shall apply to distributions made after December 31, 2010.

6.

Repeal of limitation on health flexible spending arrangements under cafeteria plans

(a)

In general

Section 125 of the Internal Revenue Code of 1986 is amended by striking subsection (i). (b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2012.

7.

Repeal of increased threshold for itemized deduction for medical expenses

(a)

In general

Subsection (a) of section 213 of the Internal Revenue Code of 1986 is amended by striking 10 percent and inserting 7.5 percent. (b)

Conforming amendments

(1)Section 56(b)(1)(B) of such Code is amended by striking without regard to subsection (f) of such section and inserting by substituting 10 percent for 7.5 percent. (2)Section 213 of such Code is amended by striking subsection (f). (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2012.

8.

Repeal of excise tax on indoor tanning services

(a)

In general

Subtitle D of the Internal Revenue Code of 1986 is amended by striking chapter 49 (and by striking the item relating to such chapter in the table of chapters for such subtitle). (b)

Effective date

The amendment made by this section shall apply to services performed after the date of the enactment of this Act.

9.

Repeal of individual health insurance mandate

Section 5000A of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (h)

Termination

This section shall not apply with respect to any month beginning after the date of the enactment of this subsection. .

10.

Repeal of employer health insurance mandate

(a)

In general

Chapter 43 of the Internal Revenue Code of 1986 is amended by striking section 4980H. (b)

Repeal of related reporting requirements

Subpart D of part III of subchapter A of chapter 61 of such Code is amended by striking section 6056. (c)

Conforming amendments

(1)Subparagraph (B) of section 6724(d)(1) of such Code is amended by inserting or at the end of clause (xxiii), by striking and at the end of clause (xxiv) and inserting or, and by striking clause (xxv). (2)Paragraph (2) of section 6724(d) of such Code is amended by inserting or at the end of subparagraph (FF), by striking , or at the end of subparagraph (GG) and inserting a period, and by striking subparagraph (HH). (3)The table of sections for chapter 43 of such Code is amended by striking the item relating to section 4980H. (4)The table of sections for subpart D of part III of subchapter A of chapter 61 of such Code is amended by striking the item relating to section 6056. (5)Section 1513 of the Patient Protection and Affordable Care Act is amended by striking subsection (c). (d)

Effective dates

(1)

In general

Except as otherwise provided in this subsection, the amendments made by this section shall apply to months and other periods beginning after December 31, 2013. (2)

Repeal of study and report

The amendment made by subsection (c)(5) shall take effect on the date of the enactment of this Act.

11.

Repeal of excise tax on medical devices

(a)

In general

Chapter 32 of the Internal Revenue Code of 1986 is amended by striking subchapter E (and by striking the item relating to such subchapter in the table of subchapters of such chapter). (b)

Conforming amendments

(1)Section 4221(a) of such Code is amended by striking the last sentence. (2)Section 6416(b)(2) of such Code is amended by striking the last sentence. (c)

Effective date

The amendments made by this section shall apply to sales after December 31, 2012.

12.

Repeal of annual fee on branded prescription drug manufacturers

(a)

In general

The Patient Protection and Affordable Care Act is amended by striking section 9008. (b)

Conforming amendment

Section 1841(a) of the Social Security Act is amended by striking or section 9008(c) of the Patient Protection and Affordable Care Act of 2009. (c)

Effective date

The amendment made by this section shall apply to calendar years beginning after December 31, 2011.

13.

Repeal of annual fee on health insurance providers

(a)

In general

The Patient Protection and Affordable Care Act is amended by striking section 9010. (b)

Effective date

The amendment made by this section shall apply to calendar years beginning after December 31, 2013.

14.

Repeal of study and report on repealed provisions

The Patient Protection and Affordable Care Act is amended by striking section 9011.