[Congressional Record Volume 148, Number 6 (Monday, February 4, 2002)]
[Senate]
[Pages S279-S281]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
HOPE FOR CHILDREN ACT--Continued
The PRESIDING OFFICER. The Senator from Idaho.
Amendment No. 2770
Mr. CRAIG. Mr. President, I have an amendment which I send to the
desk.
The PRESIDING OFFICER. The clerk will report.
The senior assistant bill clerk read as follows:
The Senator from Idaho [Mr. Craig], for himself, Mr.
Torricelli, Mr. Grassley, Mr. Santorum, Mr. Frist, Mr.
Ensign, and Mr. Hutchinson, proposes an amendment numbered
2770 to the language proposed to be stricken by amendment No.
2698.
Mr. CRAIG. Mr. President, I ask unanimous consent that the reading of
the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
(Purpose: To amend the Internal Revenue Code of 1986 to expand the
availability of Archer medical savings accounts)
At the appropriate place, insert the following:
SEC. ____. EXPANSION OF AVAILABILITY OF ARCHER MEDICAL
SAVINGS ACCOUNTS.
(a) Repeal of Limitations on Number of Medical Savings
Accounts.--
(1) In general.--Subsections (i) and (j) of section 220 of
the Internal Revenue Code of 1986 are hereby repealed.
(2) Conforming amendments.--
(A) Paragraph (1) of section 220(c) of such Code is amended
by striking subparagraph (D).
(B) Section 138 of such Code is amended by striking
subsection (f).
(b) Availability Not Limited to Accounts for Employees of
Small Employers and Self-Employed Individuals.--
(1) In general.--Subparagraph (A) of section 220(c)(1) of
such Code (relating to eligible individual) is amended to
read as follows:
``(A) In general.--The term `eligible individual' means,
with respect to any month, any individual if--
``(i) such individual is covered under a high deductible
health plan as of the 1st day of such month, and
``(ii) such individual is not, while covered under a high
deductible health plan, covered under any health plan--
``(I) which is not a high deductible health plan, and
``(II) which provides coverage for any benefit which is
covered under the high deductible health plan.''.
(2) Conforming amendments.--
(A) Section 220(c)(1) of such Code is amended by striking
subparagraph (C).
(B) Section 220(c) of such Code is amended by striking
paragraph (4) (defining small employer) and by redesignating
paragraph (5) as paragraph (4).
(C) Section 220(b) of such Code is amended by striking
paragraph (4) (relating to deduction limited by compensation)
and by redesignating paragraphs (5), (6), and (7) as
paragraphs (4), (5), and (6), respectively.
(c) Increase in Amount of Deduction Allowed for
Contributions to Medical Savings Accounts.--
(1) In general.--Paragraph (2) of section 220(b) of such
Code is amended to read as follows:
``(2) Monthly limitation.--The monthly limitation for any
month is the amount equal to \1/12\ of the annual deductible
(as of the first day of such month) of the individual's
coverage under the high deductible health plan.''.
(2) Conforming amendment.--Clause (ii) of section
220(d)(1)(A) of such Code is amended by striking ``75 percent
of''.
(d) Both Employers and Employees May Contribute to Medical
Savings Accounts.--Paragraph (4) of section 220(b) of such
Code (as redesignated by subsection (b)(2)(C)) is amended to
read as follows:
``(4) Coordination with exclusion for employer
contributions.--The limitation which would (but for this
paragraph) apply under this subsection to the taxpayer for
any taxable year shall be reduced (but not below zero) by the
amount which would (but for section 106(b)) be includible in
the taxpayer's gross income for such taxable year.''.
(e) Reduction of Permitted Deductibles Under High
Deductible Health Plans.--
(1) In general.--Subparagraph (A) of section 220(c)(2) of
such Code (defining high deductible health plan) is amended--
(A) by striking ``$1,500'' in clause (i) and inserting
``$1,000''; and
(B) by striking ``$3,000'' in clause (ii) and inserting
``$2,000''.
(2) Conforming amendment.--Subsection (g) of section 220 of
such Code is amended to read as follows:
``(g) Cost-of-Living Adjustment.--
``(1) In general.--In the case of any taxable year
beginning in a calendar year after 1998, each dollar amount
in subsection (c)(2) shall be increased by an amount equal
to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which such taxable
year begins by substituting `calendar year 1997' for
`calendar year 1992' in subparagraph (B) thereof.
``(2) Special rules.--In the case of the $1,000 amount in
subsection (c)(2)(A)(i) and the $2,000 amount in subsection
(c)(2)(A)(ii), paragraph (1)(B) shall be applied by
substituting `calendar year 2000' for `calendar year 1997'.
``(3) Rounding.--If any increase under paragraph (1) or (2)
is not a multiple of $50, such increase shall be rounded to
the nearest multiple of $50.''.
(f) Providing Incentives for Preferred Provider
Organizations To Offer Medical Savings Accounts.--Clause (ii)
of section 220(c)(2)(B) of such Code is amended by striking
``preventive care if'' and all that follows and inserting
``preventive care.''
(g) Medical Savings Accounts May Be Offered Under Cafeteria
Plans.--Subsection (f) of section 125 of such Code is amended
by striking ``106(b),''.
(h) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2001.
(i) Emergency Designation.--Congress designates as
emergency requirements pursuant to section 252(e) of the
Balanced Budget and Emergency Deficit Control Act of 1985 the
following amounts:
(1) An amount equal to the amount by which revenues are
reduced by this section below the recommended levels of
Federal revenues for fiscal year 2002, the total of fiscal
years 2002 through 2006, and the total of fiscal years 2002
through 2011, provided in the conference report accompanying
H. Con. Res. 83, the concurrent resolution on the budget for
fiscal year 2002.
(2) Amounts equal to the amounts of new budget authority
and outlays provided in this Act in excess of the allocations
under section 302(a) of the Congressional Budget Act of 1974
to the Committee on Finance of the Senate for fiscal year
2002, the total of fiscal years 2002 through 2006, and the
total of fiscal years 2002 through 2011.
Mr. CRAIG. Mr. President, I come this evening to add to the
underlying legislation that we are now calling a stimulus package, or
at least an effort on the part of Congress and this Senate to produce a
Senate version of stimulus that we might get to the House and into
conference, an amount that I think is a clear and important part of
that stimulus package.
As President Bush has said, Americans know economic security can
vanish in an instant without health security. Today nearly 40 million
Americans lack health insurance, a crisis that can only worsen today's
climate of job loss and double-digit health premium increases.
In 1997, Congress launched a test program to see if medical savings
accounts could provide families with health security. That program has
succeeded. Despite unnecessary restrictions, over one-third of the
participants were previously uninsured. A medical savings account
effort to extend coverage to the uninsured at a fraction of the cost of
government health care programs has worked in this economy. Rather than
letting this promising reform program expire this year, my colleague
from New Jersey and I have introduced an amendment to make medical
savings accounts permanent and widely available. That is the thrust of
this amendment.
I have some great accounts of our country's citizens who have used
this advantage, many of them hard-working men and women, middle or
lower middle class Americans. Let me cite an example. These are the
women. Kay Heine, Kristina Anderson Wright, and Rebecca Turner had this
to say for the Wisconsin State Journal:
All three of us are working, middle-class mothers. Two of
us are single moms. We all have medical savings accounts that
provide health insurance for our families. Our message to
people in Washington in plain, unmistakable English, is
that MSAs work for working families.
So I hope as we consider the stimulus package, my colleagues would
consider
[[Page S280]]
this amendment, make it a part of the stimulus package to not allow
this very important program to expire and for these citizens to lose
it, and, more importantly, that we should be adding citizens by giving
them the opportunity to have medical savings accounts as a part of
their insurance portfolio.
I yield the floor.
I suggest the absence of a quorum.
The PRESIDING OFFICER (Mr. Reed). The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. REID. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Amendment No. 2764, as modified
Mr. REID. Mr. President, I ask that amendment No. 2764 that I offered
earlier today be the pending matter.
Mr. President, I send a modification to the desk.
The PRESIDING OFFICER. The Senator has that right. The amendment is
so modified.
The amendment, as modified, is as follows:
(Purpose: To amend the Internal Revenue Code of 1986 to provide a
nonrefundable credit for recreational travel, to modify the business
expense limits, and for other purposes)
At the end, add the following:
TITLE ____--PERSONAL TRAVEL AND BUSINESS EXPENSES
SEC. ____01. PERSONAL TRAVEL CREDIT.
(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to
nonrefundable personal credits) is amended by inserting after
section 25B the following new section:
``SEC. 25C. PERSONAL TRAVEL CREDIT.
``(a) Allowance of Credit.--In the case of an individual,
there shall be allowed as a credit against the tax imposed by
this chapter for the taxable year an amount equal to the
qualified personal travel expenses which are paid or incurred
by the taxpayer during the 60-day period beginning on the
date of the enactment of this section.
``(b) Limitations.--
``(1) Maximum credit.--The credit allowed a taxpayer under
subsection (a) for any taxable year shall not exceed $600
($1,200, in the case of a joint return).
``(2) Per trip limitation.--The expenses taken into account
under subsection (a), with respect to any trip, shall not
exceed $200.
``(c) Qualified Personal Travel Expenses.--For purposes of
this section--
``(1) In general.--The term `qualified personal travel
expenses' means reasonable expenses in connection with a
qualifying personal trip for--
``(A) travel by aircraft, rail, watercraft, or commercial
motor vehicle, and
``(B) lodging while away from home at any commercial
lodging facility.
Such term does not include expenses for meals, entertainment,
amusement, or recreation.
``(2) Qualifying personal trip.--
``(A) In general.--The term `qualifying personal trip'
means travel within the United States (including the
Commonwealth of Puerto Rico and the possessions of the United
States)--
``(i) the farthest destination of which is at least 100
miles from the taxpayer's residence,
``(ii) involves an overnight stay at a commercial lodging
facility and
``(iii) which is taken on or after the date of the
enactment of this section.
``(B) Only personal travel included.--Such term shall not
include travel if, without regard to this section, any
expenses in connection with such travel are deductible in
connection with a trade or business or activity for the
production of income.
``(3) Commercial lodging facility.--The term `commercial
lodging facility' includes any hotel, motel, resort, rooming
house, watercraft, or campground.
``(d) Special Rules.--
``(1) Denial of credit to dependents.--No credit shall be
allowed under this section to any individual with respect to
whom a deduction under section 151 is allowable to another
taxpayer for a taxable year beginning in the calendar year in
which such individual's taxable year begins.
``(2) Expenses must be substantiated.--No credit shall be
allowed by subsection (a) unless the taxpayer substantiates
by adequate records the amount of the expenses described in
subsection (c)(1).
``(e) Denial of Double Benefit.--No deduction shall be
allowed under this chapter for any expense for which credit
is allowed under this section.''.
(b) Conforming Amendments.--
(1) Section 24(b)(3)(B) of the Internal Revenue Code of
1986 is amended by striking ``23 and 25B'' and inserting
``23, 25B, and 25C''.
(2) Section 25(e)(1)(C) of such Code is amended by
inserting ``25C,'' after ``25B,''.
(3) Section 25B of such Code is amended by striking
``section 23'' and inserting ``sections 23 and 25C''.
(4) Section 26(a)(1) of such Code is amended by striking
``and 25B'' and inserting ``25B, and 25C''.
(5) Section 1400C(d) of such Code is amended by striking
``and 25B'' and inserting ``25B, and 25C''.
(6) The table of sections for subpart A of part IV of
subchapter A of chapter 1 of such Code is amended by
inserting before the item relating to section 26 the
following new item:
``Sec. 25C. Personal travel credit.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years ending after the date of the
enactment of this Act.
SEC. ____02. TEMPORARY INCREASE IN DEDUCTION FOR BUSINESS
MEAL EXPENSES.
(a) In General.--Subsection (n) of section 274 of the
Internal Revenue Code of 1986 (relating to only 50 percent of
meal and entertainment expenses allowed as deduction) is
amended by adding at the end the following:
``(4) Temporary increase in limitation.--With respect to
any expense for food or beverage paid or incurred on or after
the date of enactment of this paragraph, and before the date
that is 180 days after such date, paragraph (1) shall be
applied by substituting `80 percent' for `50 percent'.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years ending after the date of the
enactment of this Act.
SEC. ____03. TEMPORARY RESTORATION OF DEDUCTION FOR SPOUSES
ACCOMPANYING TAXPAYER ON BUSINESS TRAVEL.
(a) In General.--Section 274(m) of the Internal Revenue
Code of 1986 (relating to limitations on travel expenses) is
amended by adding at the end the following:
``(4) Temporary repeal of limitation.--With respect to any
travel expense paid or incurred on or after the date of
enactment of this paragraph, and before the date that is 180
days after such date, paragraph (3) shall not apply.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years ending after the date of the
enactment of this Act.
The PRESIDING OFFICER. The Senator from Iowa.
Mr. GRASSLEY. Mr. President, is it necessary for me to ask unanimous
consent to set the pending amendment aside?
The PRESIDING OFFICER. For the purposes of calling up a new
amendment, it is necessary to set the pending amendment aside.
Mr. GRASSLEY. I ask unanimous consent that the pending amendment be
set aside.
The PRESIDING OFFICER. Without objection, it is so ordered.
Amendment No. 2773
(Purpose: To amend the Internal Revenue Code of 1986 to provide a
nonrefundable credit for recreational travel, to modify the business
expense limits, and for other purposes)
Mr. GRASSLEY. Mr. President, I send an amendment to the desk and ask
for its immediate consideration.
The PRESIDING OFFICER. The clerk will report.
The legislative clerk read as follows:
The Senator from Iowa [Mr. Grassley], for himself, Ms.
Snowe, and Mr. Lott, proposes an amendment numbered 2773 to
the language proposed to be stricken by amendment No. 2698.
Mr. GRASSLEY. Mr. President, I ask unanimous consent that the reading
of the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
(The text of the amendment is printed in today's Record under
``Amendments Submitted.'')
Cloture Motion
Mr. GRASSLEY. I send a cloture motion to the desk.
The PRESIDING OFFICER. The cloture motion having been presented under
rule XXII, the Chair directs the clerk to read the motion.
The legislative clerk read as follows:
Cloture Motion
We, the undersigned Senators, in accordance with the
provisions of rule XXII of the Standing Rules of the Senate,
do hereby move to bring to a close debate on the pending
Grassley amendment:
Charles E. Grassley, Bob Smith, Craig Thomas, Pat Roberts,
Jeff Sessions, Ben Nighthorse Campbell, George Allen, Larry
E. Craig, Jim Bunning, Robert Bennett, Jon Kyl, John Ensign,
Michael D. Crapo, Frank Murkowski, Olympia J. Snowe, and Don
Nickles.
Mr. GRASSLEY. Mr. President, is the amendment filed and the cloture
motion filed?
The PRESIDING OFFICER. Yes, the amendment and the cloture motion have
been received.
Mr. GRASSLEY. For the sake of my colleagues, the amendment that I
sent to the desk is the White House-centrist bipartisan bill that was
pending in the Senate--not pending but was filed after it passed the
House of Representatives
[[Page S281]]
before the holidays with one slight modification that represents the
Bond amendment on expensing, which was adopted. Otherwise, the
amendment is the same as what has passed the House of Representatives
and the President said he would sign.
I hope we have an opportunity to get 60 votes for cloture on the
amendment and that we are able to get that amendment adopted, get the
bill to the President for signature, and consequently, then,
immediately--not 3 or 4 months down the road when we have a conference
committee trying to reach some agreement--get help to stimulate the
economy through accelerated depreciation for business, through middle-
income-tax reduction, making it permanent the 27-percent bracket down
to 25-percent bracket, and tax rebates for low-income people to
stimulate the economy on the demand side, consumer spending. All three
are meant to create jobs and will create jobs.
Also, this amendment is for the displaced workers; those mostly
affected because of what happened on September 11 will get an increase
of unemployment compensation of 13 weeks and a 60-percent tax credit
for health insurance, and we do it in a way that people can have the
option, if they do not want COBRA, to have other insurance, and also to
help those who did not have any COBRA insurance where last employed.
It is a well-rounded stimulus package that will get the job done. The
fact that it passed the House of Representatives and will be signed by
the President is reason enough for this body to adopt it, particularly
because in this body nothing gets done that is not bipartisan. This has
bipartisan support.
I yield the floor and suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. REID. Mr. President, I ask unanimous consent the order for the
quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
____________________