[Congressional Record (Bound Edition), Volume 148 (2002), Part 1]
[Senate]
[Pages 456-458]
[From the U.S. 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     the Internal Revenue Code of 1986 are hereby repealed.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

[[Page 457]]

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 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.

[[Page 458]]

  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 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.

                          ____________________