05 June 2019

House Ways & Means holds Member Day hearing

The House Ways and Means Committee on June 4 held a "Member Day" hearing to hear testimony from members on issues and legislation within the Committee's jurisdiction. Testimony from the hearing is posted here.

In his opening statement, Chairman Richard Neal (D-MA) said the committee would continue to work on "strengthening Americans' retirement security; lowering health care costs, including prescription drug prices; ensuring the tax code benefits middle-income Americans and small businesses; modernizing America's infrastructure systems so they are both safe and efficient; and securing trade agreements."

In his statement, Ranking Member Kevin Brady (R-TX) said the hearing should discuss how to advance legislation like the SECURE Act, such as "needed action this year to make Social Security fairer for our teachers, police officers, and firefighters … . WEP [the Windfall Elimination Provision], though well intentioned, has treated many of our public servants unfairly. Chairman Neal and I agree that the WEP needs to be fixed on a bipartisan basis." Brady said it was important to "lock in the 20 percent small-business tax cut for all our Main Street businesses," and he supported technical corrections for the Tax Cuts and Jobs Act (TCJA) and passing the US-Mexico-Canada Agreement (USMCA). Brady urged support for Republican "welfare reform legislation, to help move folks who are currently stuck on the sidelines into the front lines of employment."

Other Opening Statements. A number of other committee members gave opening statements highlighting an array of legislative issues. Among these:

John Larson (D-CT) spoke about his Social Security reform bill, the Social Security 2100 Act (HR 860). Devin Nunes (R-CA) focused on the importance of passing the USMCA and the Medicare "extenders" provisions. Bill Pascrell (D-NJ) addressed the TCJA's provisions limiting the state and local tax deduction (SALT). Adrian Smith (R-NE) spoke about the 96-hour rule for critical care hospitals and the Rural Health Clinic Modernization Act (S. 1037); disaster relief tax provisions; providing permanence for tax extenders such as the biodiesel credit and the short-line railroad tax credit; technical corrections for the TCJA; and fairness for rural electrical cooperatives.

Terri Sewell (D-AL) focused on rural hospitals that do not qualify for increased Medicaid and Medicare reimbursement rates, saying they would be helped by HR 584, which would raise the FMAP percentage for states that expand Medicaid. Kenny Marchant (R-TX) mentioned his Social Security Child Protection Act (HR 1838), which would allow the Social Security Administration to issue a new Social Security Number to children who have had theirs stolen due to inadvertent disclosure.

Dwight Evans (D-PA) spoke in support of a bill to expand federal Health Profession Opportunity Grants, which provide education to low-income individuals for high-demand occupations in the health care field. Tom Reed (R-NY) mentioned HR 808, which would allow physician's assistants in Medicare to certify a diabetes patient's need for therapeutic shoes, and asked Chairman Neal to hold hearings on diabetes care. Judy Chu (D-CA) mentioned the Refund Equality Act, which would change the tax code to permit legally married same-sex couples to amend their filing status for returns outside the three-year limitation, as well as disaster-related tax relief and other bills.

Among other bills, Mike Kelly (R-PA) spoke in support of the BUILD Act (HR 2541), which would raise the federal cap on private activity bonds for surface-transportation and freight-improvement projects by $5.8 billion, and his bill to repeal the 40 percent "Cadillac tax" on health plans (HR 748). Brad Schneider (D-IL) mentioned the Opioid Workforce Act (HR 5818), which would increase the number of hospital residency positions eligible for graduate medical education payments under Medicare for certain hospitals that treat addiction, as well as HR 2477, which would simplify and modernize the Medicare eligibility and enrollment process.

Jason Smith (R-MO) promoted HR 218, which would repeal the estate tax, and HR 1027, which would repeal the electric vehicle tax credit. Tom Rice (R-SC) mentioned HR 1095, which would automatically postpone certain deadlines in the tax code for taxpayers in a federal disaster area, and HR 1625, the NEW GIG Act, which would establish a test for determining if a service provider should be classified as an independent contractor rather than an employee. Jackie Walorski (R-IN) spoke in support of the JOBS for Success Act (HR 1753), which would reform the TANF program; a TCJA technical correction to fix the "retail glitch," which prevents investments in qualified improvement property (QIP) from qualifying for bonus depreciation; repeal of the medical device tax; and extensions for the biodiesel tax credit and the short-line railroad credit.

Darin LaHood (R-IL) mentioned HR 2314, the Nuclear Power Equity Act; and HR 1349, which extends the employer tax credit for cash tips to include beauty service establishments. Brad Wenstrup (R-OH) spoke in support of the Family First Transition and Support Act (HR 2702), which provides states with funds for services that keep children at home instead of in foster care; the Charitable Equity for Veterans Act; the USMCA; and an extension for the Caribbean Basin Initiative. Jodey Arrington (R-TX) spoke in favor of the USMCA and mentioned the needs of rural hospitals.

Ron Estes (R-KS) mentioned the tax extenders for short-line railroads and biodiesel, and supported passage of the USMCA. David Schweikert (R-AZ) mentioned tax incentives for carbon capture and sequestration, and asked what the financing mechanisms would be for people to obtain expensive biologic drugs for chronic diseases that are expected to hit the market soon.

Panels 1 and 2 (Primarily Health Care Issues)

  • Anthony Brindisi (D-NY) spoke about rural hospital closings and a fix for Voluntary Disclosure Agreement (VDA) payments, as well as support for repealing or delaying the ACA's health insurance tax (HIT).
  • Xochitl Torres Small (D-NM) supported addressing the shortage of physicians in rural areas with the Resident Physician Shortage Reduction Act (HR 1763), as well as support for non-emergency medical transportation programs and lowering prescription drug costs.
  • Donald Payne Jr. (D-NJ) and Rodney Davis (R-IL) both mentioned the Donald Payne Sr. Colorectal Cancer Detection Act (HR 1765). Veronica Escobar (D-TX) spoke in support of economic development in opportunity zones, as well as trade issues.
  • In the second panel, TJ Cox (D-CA) spoke about addressing pulmonary disease, COPD and expanding telehealth programs, and mentioned Valley Fever, a fungal respiratory infection that has become endemic in Kern County, Calif. Donna Shalala (D-FL) spoke in favor of universal health care, placing a cap on out-of-pocket costs in Medicare and promoting dental care and long-term health in Medicare. Shalala also mentioned gaps in the Medigap program and threats to the ACA's protections against being denied coverage for preexisting conditions.
  • Andy Levin (D-MI) mentioned fixes to the USMCA necessary to address labor and environmental protections. Jim Hagedorn (R-MN) focused on support for USMCA and the TCJA, as well as the importance of job creation and vocational education.

Panel 3 (Health/Tax Issues)

  • Ben McAdams (D-UT) said the high cost of prescription drugs should be addressed by using the power of markets to ensure better prices, and by improving the competition in the generic drug market. McAdams also supported ending "surprise" medical bills; lowering premiums for individual coverage in the ACA exchanges; and restoring the transportation and parking benefits reduced by the TCJA.
  • Dean Phillips (D-MN) said the president's tariffs are harming Minnesota manufacturers; supported repealing the medical device tax and the TCJA's limits on the SALT deduction. Mikie Sherrill (D-NJ) mentioned the SALT Relief and Marriage Penalty Act (HR 2624), which would raise the TCJA's cap on the state and local tax (SALT) deduction to equal the levels of the standard deduction.
  • Ted Budd (R-NC) spoke in support of legislation related to blockchain and cryptocurrency, including a bill to extend the de minimis exemption for transactions, and HR 7361 from the last Congress, which would allow digital assets to be eligible for like-kind exchanges.
  • Lauren Underwood (D-IL) spoke in favor of her HR 1868, which would make health coverage under the ACA more affordable for those with incomes too high for subsidies, eliminating the "income cliff."

Panel 4 (Tax Issues)

  • Del. Eleanor Holmes Norton (D-DC) mentioned HR 3678 from the previous Congress, which would create an "empowerment zone" for Washington D.C., arguing the bill should be included in a tax extenders package. Nydia Velazquez (D-NY) focused on measures providing relief to Puerto Rico, such as expanding the refundable child tax credit and earned income tax credit (EITC) and ending disparities in the island's Medicare program.
  • Roger Marshall (R-KS) spoke in support of tariffs on China and passing the USMCA. Marshall also supported the tax extenders for biodiesel, short-line railroads and 15-year depreciation for small-business property; and a bill that would set standards for electronic requests for "prior authorization" of procedures and medicines in Medicare Advantage.
  • Elissa Slotkin (D-MI) supported efforts to reduce prescription drug prices by allowing Medicare to negotiate prices with drugmakers.

Panel 5 (Tax Issues)

  • Rashida Tlaib (D-MI) spoke in support of the LIFT Act (S. 4), which would establish a refundable, means-tested middle-class tax credit of up to $3,000 for individuals and up to $6,000 for married individuals filing jointly. Rosa DeLauro (D-CT) mentioned increasing the child tax credit to make it fully refundable and indexed to inflation, as well as the Family Act (HR 1185), which would provide up to 60 days of paid family and medical leave administered by the Social Security Administration.
  • Conor Lamb (D-PA) spoke in favor of a bill to restore deductions for unreimbursed travel expenses and union dues that were eliminated by the TCJA. Sharice Davids (D-KS) mentioned legislation requiring more transparency for pharmacy benefit managers (PBMs), as well as the tax extender for short-line railroads.
  • Deb Haaland (D-NM) supported efforts to end "surprise" medical bills and legislation that would require "gig economy" employers like Uber, Lyft and other companies that employ large numbers of independent contractors to pay both the employer and employee portion of their workers' 1099 earnings. Haaland also mentioned tax credits for plug-in electrical vehicles, energy efficiency retrofits and the whole-building energy credit.
  • Harley Rouda (D-CA) spoke in support of HR 1929, which would permanently extend the qualified fuel cell motor tax credit, as well as legislation to expand former family caregivers' access to their retirement savings with catch-up contributions.
  • Anthony Gonzalez (R-OH) and K. Michael Conaway (R-TX) spoke in support of the USMCA. Scott Peters (D-CA) mentioned HR 1043, which would make employer-provided student loan payments tax-exempt up to $5,250 a year, similar to tax exemptions for tuition assistance programs.
  • Abby Finkenauer (D-IA) mentioned the tax extender provision for biodiesel, and renewal of the tax credit for second generation biofuels, and Haley Stevens (D-MI) spoke in favor of expanding the electric vehicle tax credit and supported other clean energy tax incentives.

Panel 7 (Tax Issues)

  • Ami Bera (D-CA) supported HR 1398, which would delay the ACA's health insurance tax (HIT) until after 2021, as well as expanding health savings account contributions for seniors. Bill Foster (D-IL) mentioned the importance of raising the debt limit.
  • Alan Lowenthal (D-CA) spoke in support of infrastructure funding, while Daniel Lipinski (D-IL) supported repealing the TCJA's limits on the SALT deduction modification and making the tax credit for short-line railroads retroactive and permanent.

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Contact Information
For additional information concerning this Alert, please contact:
 
Washington Council Ernst & Young
   • Any member of the group at (202) 293-7474.

Document ID: 2019-1041