Dave Camp

Mr. CAMP

Mr. CAMP. Mr. Speaker, I yield myself 15 seconds. When Republicans were in the majority, we passed a children's health initiative; a prescription drug plan for seniors; we put wellness into Medicare; we established portability so people could change jobs and keep their health care; and we established health savings accounts. Our record on health care is strong. What we need is this continuation of this step-by-step approach to comprehensive health care reform. I would now yield 5 minutes to the distinguished gentleman from Indiana (Mr. Pence). (Mr. PENCE asked and was given permission to revise and extend his remarks.)

Mr. CAMP. Mr. Speaker, I yield myself 4 minutes. Mr. Speaker, the American people deserve and demand a commonsense approach to health care reform that, one, makes health care more affordable; two, that guarantees all Americans, regardless of preexisting condition, have access to affordable health care; and, three, does so without raising taxes, without increasing the deficit and without the Federal Government making health care decisions that should be made by patients and doctors. The Common Sense Health Care Reform and Affordability Act, the House Republican health care bill, does that. The plan offered today by the Speaker does not. Just some of the highlights of the Republicans' Common Sense Health Care Reform and Affordability Act include: Lowering health care premiums: The Republican plan will lower health care premiums for American families and small businesses, addressing Americans' number-one priority for health care reform. According to the Congressional Budget Office, the Republican health care reforms would reduce premiums by up to 3 percent for Americans who get insurance through a large business, up to 8 percent for Americans without employer-sponsored insurance, and up to 10 percent for those working for a small business. CBO has not made a claim that the Democrats' bill would lower premiums at all. What do these numbers mean? It means families who do not have health insurance in 2016 through their job could buy health insurance that is $5,000 less expensive than the cheapest plan the Democrats offer. The Republican plan guarantees access to affordable health care for those with preexisting conditions. Republicans create universal access programs that expand and reform high-risk pools and reinsurance programs to guarantee that all Americans, regardless of preexisting conditions or past illnesses, have access to affordable care, while lowering costs for all Americans. The Republican plan reduces the number of junk lawsuits, which saves taxpayers' money and lowers premiums, by enacting medical liability reforms modeled after the successful State laws of California and Texas. The Republican plan prevents insurers from wrongly canceling a policy unless a person commits fraud. The Republican plan encourages Small Business Health Plans so these employers can pool together and offer health care at lower prices, just as large corporations and labor unions do today. The Republican plan encourages innovative programs by rewarding States that reduce premiums and the number of uninsured. In comparison, the Democrat bill adds a new unfunded mandate States cannot afford with their over $400 billion expansion of Medicaid. The Republican plan allows Americans to buy insurance across State lines and find the health care plan that best meets their needs at a cost they can afford. The Republican plan promotes prevention and wellness by more than doubling the financial incentives employers may reward employees who adopt healthier lifestyles. Republicans enhance health savings accounts by allowing Americans to use HSA funds to pay premiums for high deductible health insurance. And the Republican plan allows dependents to remain on their parents' policies up to the age of 25. The health insurance reforms in the Republican bill will significantly reduce health care premiums, insure millions of Americans, guarantee those with preexisting conditions have access to quality, affordable care. We do all of this without raising taxes, without spending $1 trillion we don't have, without cutting Medicare and without putting some new health czar in between doctors and patients, which is what the Democrat majority does in their government takeover bill. Clearly the bill offered by the Speaker is not what the American people want. Americans are clamoring for lower cost health care and that is what the Republican plan offers. I urge my colleagues to reject the Democrats' government takeover of health care and vote ``yes'' on the Republican substitute that will lower health care premiums. I reserve the balance of my time. Announcement by the Speaker Pro Tempore

Mr. CAMP. Madam Speaker, I yield 1 minute to the gentleman from California (Mr. Rohrabacher).

Mr. CAMP. Madam Speaker, at this time I will place in the Record a letter from the Joint Committee on Taxation, which on page 3 indicates that both misdemeanor and felony penalties with imprisonment of up to 5 years will be imposed. Congress of the United States, Joint Committee on Taxation, Washington, DC, November 5, 2009. Hon. Dave Camp, House of Representatives, Washington, DC. Dear Mr. Camp: This is in response to your request for information relating to enforcement through the Internal Revenue Code (``Code'') of the individual mandate of H.R. 3962, as amended, the ``Affordable Health Care for America Act.'' You specifically inquired about penalties for a willful failure to comply. Tax on individuals without acceptable health care coverage H.R. 3962 provides that an individual (or a husband and wife in the case of a joint return) who does not, at any time during the taxable year, maintain acceptable health insurance coverage for himself or herself and each of his or her qualifying children is subject to an additional tax. The tax is equal to the lesser of (a) the national average premium for single or family coverage, as applicable, as determined by the Secretary of Treasury in coordination with the Health Choices Commissioner, or (b) 2.5 percent of the excess of the taxpayer's modified adjusted gross income over the threshold amount of income required for the income tax return filing for that taxpayer. This tax is in addition to both regular income tax and the alternative minimum tax, and is prorated for periods in which the failure exists for only part of the year. In general, the additional tax applies only to United States citizens and resident aliens. The additional tax does not apply to those who are residents of the possessions or who are dependents, nor does it apply to those whose lapses in coverage are de minimis or those with religious conscience exemptions. The additional tax does not apply if the maintenance of acceptable coverage would result in a hardship to the individual or if the person's income is below the threshold for filing a Federal income tax return. Range of civil and criminal penalties for noncompliance You asked that I discuss the situation in which the taxpayer has chosen not to comply with individual mandate and not to pay the additional tax. The Code provides for both civil and criminal penalties to ensure complete and accurate reporting of tax liability and to discourage fraudulent attempts to defeat or evade tax. Civil and criminal penalties are applied separately. Thus, a taxpayer convicted of a criminal tax offense may be subject to both criminal and civil penalties, and a taxpayer acquitted of a criminal tax offense may nontheless be subject to civil tax penalties. In cases involving both criminal and civil penalties, the IRS generally does not pursue both simultaneouly, but delays pursuit of civil penalties until the criminal proceedings have concluded. The majority of delinquent taxes and penalties are collected through the civil process. In determining whether a penalty applies along with an adjustment to a tax return, the examining agent is constrained not only by the applicable statutory provisions, but also by the written policy of the IRS not to treat penalties as bargaining points but instead to develop the facts sufficiently to support the decision to assert or not to assert a penalty. The goal is consistency, fairness and predictability in administration of penalties. If the government determines that the taxpayer's unpaid tax liability results from willful behavior, the following penalties could apply. Civil penalties Section 6662(a)--an accuracy related penalty of 20 percent of the underpayment attributable to the health care tax, based on negligence or disregard (the former includes lack of a reasonable attempt to comply and the latter includes any intentional disregard of rules or regulations) or substantial understatement, if the understatement of tax is sufficiently large. Section 6663--a fraud penalty of 75 percent of the underpayment, if the government can prove fraudulent intent to avoid taxes by clear and convincing evidence. Section 6702--a $5,000 penalty for taking a frivolous position on a tax return, if the underpayment is intended to delay or impede tax administration and the return on its face indicates that the self-assessment is substantially incorrect. Section 6651--delinquency penalty of .5 percent of the underpayment, each month, up to a maximum of 25 percent of the underpayment. Criminal penalties Prosecution is authorized under the Code for a variety of offenses. Depending on the level of the noncompliance, the following penalties could apply to an individual: Section 7203--misdemeanor willful failure to pay is punishable by a fine of up to $25,000 and/or imprisonment of up to one year. Section 7201--felony willful evasion is punishable by a fine of up to $250,000 and/or imprisonment of up to five years. Application of penalties under current practice The IRS attempts to collect most unpaid liabilities through the civil procedures described above. A number of factors distinguish civil from criminal penalties, in addition to the potential for incarceration if found guilty of a crime. Unlike the standard in civil cases, successful criminal prosecution requires that the government bear the burden of proof beyond a reasonable doubt of all elements of the offense. Most criminal offenses require proof that the offense was willful, which is a degree of culpability greater than that required in a civil penalty cases. For example, a prosecution for willful failure to pay under section 7203 requires proof beyond a reasonable doubt both that the taxpayer intentionally violated a known legal duty and that the taxpayer had the ability to pay. In contrast, in applying the civil penalty for failure to pay under section 6651, the burden is on the taxpayer: the penalty applies unless the taxpayer can establish reasonable cause and lack of willful neglect with respect to his failure to pay. Criminal prosecution is not authorized without careful review by both the IRS and the Department of Justice. In practice the application of criminal penalties is infrequent. In fiscal year 2008, the total cases referred for prosecution of legal source tax crimes were as follows. Investigations initiated--1,531. Indictments and informations--757. Convictions--666. Sentenced--645. Incarcerated--498. Percentage of those sentenced who were incarcerated--77.2. Of the 666 convictions reported above for fiscal year 2008, fewer than 100 were convictions for willful failure to file or pay taxes under section 7203. Civil penalties outnumber criminal penalties imposed. For example, in fiscal year 2008, compared to the 666 convictions, approximately 392,000 accuracy related penalties were assessed on individual returns. Also in fiscal year 2008, the IRS assessed 5,502 penalties under section 6702 for frivolous positions taken on returns. I hope this information is helpful for you. If I can be of further assistance, please contact me. Sincerely, Thomas A. Barthold. Madam Speaker, at this time I yield 1 minute to the gentleman from Texas (Mr. Poe).

Mr. CAMP. Madam Speaker, at this time I yield 1 minute to the gentleman from Texas (Mr. Gohmert).

Mr. CAMP. Madam Speaker, at this time I yield 1 minute to the gentleman from Georgia (Mr. Kingston).

Mr. CAMP. At this time, Mr. Speaker, I yield 1 minute to the gentleman from Virginia (Mr. Goodlatte).

Mr. CAMP. Mr. Speaker, at this time, I yield 1 minute to the gentlewoman from West Virginia (Mrs. Capito).

Mr. CAMP. Mr. Speaker, I yield 1 minute to the gentleman from Florida (Mr. Crenshaw).

Mr. CAMP. At this time, Mr. Speaker, I yield 1 minute to the gentlewoman from Oklahoma (Ms. Fallin).

Mr. CAMP. Mr. Speaker, at this time, I yield 1 minute to the gentlewoman from Michigan (Mrs. Miller).

Mr. CAMP. Mr. Speaker, at this time I yield 2 minutes to a distinguished Member of the Ways and Means Committee, the gentleman from Illinois (Mr. Roskam).

Mr. CAMP. Mr. Speaker, I yield 2 minutes to the distinguished member of the Ways and Means Committee, the gentleman from Nevada (Mr. Heller).

Mr. CAMP. Mr. Speaker, I yield 2 minutes to a distinguished member of the Ways and Means Committee, the gentleman from Louisiana (Dr. Boustany).

Mr. CAMP. Mr. Speaker, at this time I yield 2 minutes to a distinguished member of the Ways and Means Committee, the gentleman from Washington State (Mr. Reichert).

Mr. CAMP. Mr. Speaker, I yield 2 minutes to a distinguished member of the Ways and Means Committee, the gentleman from Kentucky (Mr. Davis).

Mr. CAMP. At this time I yield 2 minutes to a distinguished member of the Ways and Means Committee, the gentlewoman from Florida (Ms. Ginny Brown-Waite).

Mr. CAMP. Mr. Speaker, I yield 2 minutes to a distinguished member of the Ways and Means Committee, the gentleman from Ohio (Mr. Tiberi).

Mr. CAMP. Regular order, Mr. Speaker. Regular order. No time has been yielded.

Mr. CAMP. Mr. Speaker, I yield 3 minutes to the distinguished minority leader, the gentleman from Ohio (Mr. Boehner).

Mr. CAMP. Mr. Speaker, I yield 2 minutes to the gentleman from Texas (Mr. Carter).

Mr. CAMP. Mr. Speaker, I yield 2 minutes to a distinguished member of the Ways and Means Committee, the gentleman from California (Mr. Nunes).

Mr. CAMP. Mr. Speaker, I yield 2 minutes to the distinguished member of the Ways and Means Committee, the gentleman from Georgia (Mr. Linder).

Mr. CAMP. I yield 2 minutes, Mr. Speaker, to the distinguished member of the Ways and Means, the gentleman from California (Mr. Herger).

Mr. CAMP. Mr. Speaker, at this time, I yield 2 minutes to the distinguished ranking member of the Budget Committee and distinguished member of the Ways and Means Committee, the gentleman from Wisconsin (Mr. Ryan).