Tax News

CCH (cch.taxgroup.com) reports:

  The Senate on Nov. 21 approved by a 60-39 margin a procedural motion to take up a sweeping $849 billion health care reform measure, but some moderate Democrats said their vote to proceed does not ensure their support for final passage. The full Senate returns from Thanksgiving recess on Nov. 30, and lawmakers are expected to engage in a lengthy debate stretching into late December.

  Senate Democratic leadership warned that if the bill is not finished by the holidays, the Senate could take an abbreviated break and quickly return to work "We have to finish it in the Senate or it's going to be maybe a long lunch break over Christmas," Majority Whip Dick Durbin, D-Ill., said Nov. 22 on NBC's "Meet The Press."

  Durbin said it would still be possible to pass the legislation if debate slips into early January, but cautioned that the process would become more complicated. "It becomes more complex because both the president and the Congress want to shift from this critically important issue, which is central to our economy, to the economy and jobs."

  Central issues to the looming debate include whether or not to provide a public option, statutory language disallowing any federal funding for abortions, and a 40-percent tax on high end insurance plans that could hit middle income earners. Democratic leaders are expected to negotiate with moderate Democrats on a compromise solution regarding a government sponsored health insurance plan.

  Republicans will likely remain united in their drive to kill the bill, although Democratic leaders are holding out hope that one or two GOP members may relent and vote for final passage. Some Republican votes may be critical to passing health reform if Reid cannot ultimately win the support of some wavering Democrats.

  Senate Finance Committee Chairman Max Baucus, D-Mont., who guided his Committee through passage of that panel's portion of health reform legislation, said lawmakers now have the chance to fully address the growing health care crisis. "Now, on this floor, we have the opportunity to consider this plan. We have the chance to make it even better. We hope to have a full debate," said Baucus.

  Following the vote, the White House issued a statement praising the Senate's decision to proceed. "The President is gratified that the Senate has acted to begin consideration of health insurance reform legislation. Tonight's historic vote brings us one step closer to ending insurance company abuses, reining in spiraling health care costs, providing stability and security to those with health insurance, and extending quality health coverage to those who lack it. The President looks forward to a thorough and productive debate."

  CCH Comment. CCH's Tax Briefing on the Senate's Health Care Bill can be found at
http://tax.cchgroup.com/Legislation/Heathcare-Reform-Nov-19-2009.pdf.

  By Jeff Carlson, CCH News Staff

SAP on HR 3590 --Patient Protection and Affordable Care Act