Tax News

CCH (cch.taxgroup.com) reports:

Early on July 27, 2007, the House Ways and Means Committee approved, by a vote of 24-17, the Children's Health and Medicare Protection (CHAMP) Bill of 2007 (HR 3162), which would expand the State Children's Health Insurance Program (SCHIP) over five years to cover millions of additional children, provide reforms to the Medicare program and reduce overpayments to Medicare Advantage plans. However, the House Energy and Commerce Committee (E&C) adjourned its markup for lack of progress. The E&C committee is unlikely to take up the bill again; it is expected that the measure will be brought to the floor through the Rules Committee during the week of July 30.
The proposal also would finance SCHIP expansion in part with tobacco tax increases. The proposal differs in scope from the $35 billion expansion under consideration by the Senate, which contains a 61-cent cigarette tax increase. The House bill (HR 3162) includes a $50 billion expansion, and a 45-cent cigarette tax increase.
The measure faces a veto threat from President Bush; the administration opposes the cigarette tax increases that would help pay for the expansion. Instead, Bush favors a small expansion and various health tax benefits.
By Catherine Hubbard, CCH News Staff
JCT Description of an Amendment in the Nature of a Substitute to the Provisions of Title X of HR 3162, the Children's Health and Medicare Protection Act of 2007, JCX-56-07
JCT Estimated Revenue Effects of the Chairman's Amendment in the Nature of a Substitute to Title X of HR 3162, the Children's Health and Medicare Protection Act of 2007, JCX-57-07