Sander Levin

Mr. LEVIN

Mr. LEVIN. Mr. Speaker, how much is there on both sides?

Mr. LEVIN

Mr. LEVIN. Madam Speaker, I yield 1 minute to the gentleman from Georgia (Mr. Lewis).

Mr. LEVIN. I yield 1\1/2\ minutes to the gentleman from New Jersey (Mr. Andrews). (Mr. ANDREWS asked and was given permission to revise and extend his remarks.)

Mr. LEVIN. I yield back the balance of my time.

Mr. LEVIN. I will be glad to do that. So my colleagues want to make sure, if they can, that this doesn't happen. It's going to. You say, why can't we get together? The last months, the last year, all of this has proven the last thing you want to do is to get together. They think that the best thing to do is to make sure we can't. That won't help the small businesses of this country. This is an excellent, necessary bill for small businesses in this country who need the credit flowing. And those who vote ``no'' are standing in the way of that flow of credit for the small businesses of this country. Inexcusable.

Mr. LEVIN. I yield myself such time as I may consume. Madam Speaker, not much time needs to be consumed to make clear what is happening here. Many on the minority side rise in opposition. Why? Essentially, it is this: Oppose any bill that helps the Nation, because it helps the President and this Congress achieve something for the Nation. Oppose it even if it helps small business, as this bill will. Oppose it even if it creates jobs, the key to this bill. Oppose it even if the pay-fors primarily were developed on a bipartisan basis. Find some flimsy excuse to oppose it. I will read the last sentence from the Chamber of Commerce letter: ``Ninety-six percent of the Chamber's members are small businesses with fewer than 100 employees. On behalf of these small businesses, the Chamber urges you to support H.R. 5297 and strongly encourages Congress to address the issues of broad economic importance to the small business community.'' So you're trying to find some fig leaf. So far, they've all been transparent. To come here and to try to march with your message, even when it doesn't apply, doesn't serve you well. It doesn't serve this Congress well. It surely doesn't serve small businesses well, and it doesn't serve well our Nation. I reserve the balance of my time.

Mr. LEVIN. Madam Speaker, on that I demand the yeas and nays.

Mr. LEVIN. My colleagues on the Republican side want to talk about everything except this bill. I understand that. I think quietly you might admit you are embarrassed to vote against it. You raise the 1099 issue in the health bill. We've brought up a bill to repeal it, and almost all of you voted ``no.'' You want to talk about all kinds of other issues except this bill. Announcement by the Speaker Pro Tempore

Mr. LEVIN. Madam Speaker, it is now my privilege to yield 1 minute to the gentleman from Massachusetts, a member of our committee, Mr. Neal.

Mr. LEVIN. Madam Speaker, I yield myself such time as I may consume. You know, the mindless objection really overlooks the urgency of this picture. We go back home; people say they can't receive credit. You talk about TARP III. You're the only ones who use that language to try to find a label even for something beneficial, as was other legislation. So we go home and we hear this cry out for credit, and we put together a bill that provides $30 billion for small and medium-size businesses, and you look for an excuse. We provide money for the States to provide collateral so small businesses can receive the credit--a provision that Governors support, Republicans and Democrats--and you search for some basis that somehow will carry what you think is a winning message even if the American people are the losers. It doesn't work. Madam Speaker, I yield 1 minute to the distinguished majority leader, Mr. Hoyer. (Mr. HOYER asked and was given permission to revise and extend his remarks.)

Mr. LEVIN

Mr. LEVIN. Madam Speaker, I offer a resolution constituting the privileges of the House.

Mr. LEVIN

Mr. LEVIN. Madam Speaker, I submit the following. Health Care/Medicare Congress spent the first part of this session enacting landmark health reform legislation that substantially reforms and strengthens the Medicare program. As a result of this legislation, CBO estimates net deficit reduction of $143 billion from 2010 to 2019, and deficit reduction of more than $1 trillion in the next decade. In addition, the Medicare Actuary estimates that the Medicare changes enacted in health reform will extend the life of the Part A Trust Fund by 12 years--the largest extension in history. Finally, as a result of the new law, national health expenditures per insured person will fall by $1,400 by 2019. The health reform law also includes extensive provisions to aggressively reduce fraud, waste, and abuse in government health programs. The Affordable Care Act (ACA) establishes new authorities to enhance fraud-fighting when providers first enroll in the program and during the pre- and post- payment periods. During the Medicare provider enrollment period, ACA strengthens provider screening and disclosure requirements and allows the Secretary to impose a moratorium on new providers in areas of significant risk. These tools will help keep fraudulent providers out of government programs before they have a chance to act. In the pre-payment period, ACA directs the Secretary to establish a program of increased oversight for new providers and allows for the suspension of payment, if deemed appropriate, to a provider or supplier. For the post-payment and enforcement period, ACA establishes new penalties for the submission of false data or false claims and increases funding for proven fraud-fighting programs used by the Office of Inspector General (OIG) and the Department of Justice. Taken together, these provisions reduce fraud, waste, and abuse by improving payment accuracy, promoting efficiency, and controlling spending within Medicare and other government programs. The Committee's efforts to achieve deficit reduction, prevent fraud, promote efficiency, and control spending within government programs extend beyond the ACA. The Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010 (P.L. 111-192) included two provisions that address these goals. First, this law clarifies the 3-day payment window for inpatient admissions to ensure that all services related to the hospital admission are included in the bundled payment. Absent this provision, hospitals would likely have unbundled hospital payments driving up Medicare spending. Second, the law established a CMS-IRS data match to identify potentially fraudulent providers. This provision authorizes the Centers for Medicare and Medicaid Services (CMS) to collaborate with the IRS to determine whether providers enrolling or re-enrolling in Medicare have failed to file Federal tax returns or have delinquent tax debts. In doing so, the law helps to identify potentially fraudulent providers earlier in the application process and allows the Secretary to use this information in determining whether to deny such application or to apply enhanced oversight to the provider. Following passage of health reform legislation, the Committee has held and will continue to hold oversight hearing on a number of issues, including: Fraud, Waste and Abuse While many of the HHS OIG recommendations from their annual compendium were adopted in the ACA, combating fraud remains a top priority for the committee. On June 15th, the Health and Oversight Subcommittees held a joint hearing on combating fraud, waste, and abuse. At this hearing, a representative of the HHS Office of Inspector General discussed two new tools that would improve OIG's ability to prevent criminals from becoming providers in the Medicare program. The first recommendation was to provide OIG with broader permissive authority to exclude permanently from Medicare corporate executives who have been involved in Medicare fraud. Second, it was suggested that the OIG permissive authority could also be expanded to better enable the OIG to reach parent companies that may be hiding behind corporate shells. On September 14, 2010, in response to these recommendations, Health Subcommittee Chairman Representative Stark and Ranking Republican Wally Herger introduced the Strengthening Medicare Anti-Fraud Measures Act. The bill would provide the OIG with this expanded permissive authority. We are awaiting a CBO score of the legislation. HITECH Implementation Enactment of the American Recovery and Reinvestment Act of 2009 included the Health Information Technology for Economic and Clinical Health (HITECH) Act, which created incentive payments for providers that adopt and meaningfully use electronic medical records. Increased adoption and meaningful use of health information technology will arm providers with information that is usually held only in paper records, lower duplication rates of procedures, promote efficiency and quality, and reduce waste as providers coordinate care through improved exchange of clinical information. The Health Subcommittee held an oversight hearing on implementation of HITECH Act earlier this year and will continue to monitor the program to ensure that the advance of health information technology improves quality and efficiency of the delivery of health care in the Medicare program. Durable Medical Equipment competitive bidding process The Medicare Modernization Act directed CMS to establish a competitive bidding process for payment of durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) under Medicare. The first round of competitive bidding for DME was delayed in 2008 because of implementation problems. Later this year, CMS will award contracts under the first round of the revised program. The Health Subcommittee will examine whether CMS has adequately addressed problems with the competitive bidding program and explore its potential effect on beneficiaries' access to the program and supplier participation. Tax Provisions to Prevent Tax Avoidance and Fraud Closing Foreign Tax Credit Loopholes On August 10, 2010, the House passed H.R. 1586, the Education Jobs and Medicaid Assistance Act by a vote of 247 to 161. The bill, signed into law the same day (P.L. 111- 226), included changes developed jointly by the Treasury Department, the Committee on Ways and Means, and the Senate Committee on Finance to curtail abuses of the U.S. foreign tax credit system and other targeted abuses. Foreign tax credits are intended to ensure that U.S.-based multinational companies are not subject to double taxation. However, multi- national corporate taxpayers have taken advantage of the U.S. foreign tax credit system to reduce the U.S. tax due on completely unrelated foreign income in a manner that has nothing to do with eliminating double taxation. The bill eliminated $9.6 billion of foreign tax credit loopholes. Transfer Pricing On July 22, 2010, the Committee on Ways and Means held a hearing to begin initial discussions of the complex areas of tax law that govern transfer pricing practices among related parties (multinational corporations). Pursuant to a request by the Committee in December 2009, the Joint Committee on Taxation (JCT) undertook a study of transfer pricing issues. Part of that study involved meetings with tax practitioners and the IRS to gain a better understanding of how companies can structure overseas operations to minimize U.S. taxes. The JCT released a report summarizing its work, beginning with a study of the issues and specific case studies to illuminate the potential for income shifting through transfer pricing. The Committee continues to investigate opportunities for reducing tax avoidance by multinational corporations through transfer pricing structures. First-Time Homebuyer Program The Housing and Economic Recovery Act of 2008 established the First-Time Homebuyer Credit, which generally provided an $8,000 tax credit to certain taxpayers for the purchase of a home. The credit was extended and expanded by the American Recovery and Reinvestment Act of 2009 and the Worker, Homeownership, and Business Assistance Act of 2009 (Assistance Act). On October 22, 2009, the Subcommittee on Oversight of the Ways and Means Committee held a hearing on administration of the credit by the Internal Revenue Service (IRS). At the hearing, the Treasury Inspector General for Tax Administration (TIGTA) released a report finding instances of fraud and abuse in the program. In response to the report, TIGTA and the U.S. Government Accountability Office made several legislative recommendations to improve administration of the credit. On October 22, 2009, Oversight Subcommittee Chairman John Lewis (D-GA) introduced H.R. 3901, the Homebuyer Tax Credit Improvement Act of 2009, which provided the IRS with additional authority to prevent fraudulent claims and claims by minor children. On November 6, 2009, H.R. 3901 was enacted into law as part of the Assistance Act (P.L. 111-92). Prisoner Tax Fraud On September 27, 2008, the House passed H.R. 7082, the Inmate Tax Fraud Prevention Act of 2008. This law allows the IRS to exchange with officers and employees of the Federal Bureau of Prisons certain tax return information with respect to prisoners whom the Secretary has determined may have filed false or fraudulent tax returns. This provision was enacted into law on October 15, 2008. In June 2010, TIGTA released a report estimating that about 1,300 prison inmates (more than 90 percent of whom were state prison inmates) claimed and received more than $9 million in fraudulent first-time homebuyer tax credits. On June 29, 2010, a provision to allow the IRS to disclose tax return information to officers and employees of State agencies charged with the administration of prisons passed the House in H.R. 5623, the Homebuyer Assistance and Improvement Act of 2010. On July 2, 2010, this provision was enacted into law as part of the Homebuyer Assistance and Improvement Act of 2010 (P.L. 111-198). Tax Provisions to Promote Government Efficiency and Reform Increase electronic filing of tax returns The Internal Revenue Service Restructuring and Reform Act of 1998 (RRA) established a goal for the IRS to receive at least 80 percent of tax and information returns electronically. For 2010, the overall electronic filing (e- filing) rate is projected to reach approximately 59 percent. To achieve the 80 percent goal, an estimated 40 million additional returns need to be e-filed. On October 22, 2009, Oversight Subcommittee Chairman John Lewis (D-GA) introduced H.R. 3901, the Homebuyer Tax Credit Improvement Act of 2009, which authorized the IRS to require tax return preparers to file returns electronically in order to achieve additional cost reduction and savings. On November 6, 2009, H.R. 3901 was enacted into law as part of the Worker, Homeownership, and Business Assistance Act (P.L. 111-92). The Electronic Tax Administration Advisory Committee, established by the RRA, believes that this is the single most important initiative that will enable the IRS to reach its 80 percent electronic filing goal. Removal of cell phones from listed property In 1989, Congress passed a law requiring taxpayers to substantiate the business use of cell phones. At that time, cell phones were an expensive perk for executives. Cell phones and similar equipment are now ingrained in daily business practices at all levels. The Administration has recognized that cell phone service in this country has changed dramatically over the past decade and recommended that the law be modernized to remove the special documentation requirements for cell phones and reduce the cost of administering and complying with the provision. On April 15, 2010, a provision to eliminate the strict substantiation rules on cell phones passed the House in H.R. 4994, the Taxpayer Assistance Act of 2010. Repeal of the partial payment requirement on submissions of offers-in-compromise. Offer-in-compromise (OIC) agreements are an important collection alternative for the IRS and taxpayers. Under current law, due to legislation passed in 2006, a taxpayer offering to settle a tax liability must make a partial payment with submission of an OIC application. The need to increase the usage of OIC agreements in situations of economic hardship was raised at a February 2009 hearing of the Subcommittee on Oversight of the Committee on Ways and Means. On May 12, 2009, Oversight Subcommittee Chairman John Lewis (D-GA) introduced H.R. 2343, a bipartisan bill that would increase the likelihood that some amount of tax is collected and promote continued tax compliance by repealing the partial payment requirement. On April 15, 2010, a provision to repeal the partial payment requirement passed the House in H.R. 4994, the Taxpayer Assistance Act of 2010. Study on delivery of tax refunds The National Taxpayer Advocate (NTA) has stated that the quickest and cheapest way to distribute tax refunds is electronically rather than by paper checks in the mail. However, a large number of taxpayers do not have bank accounts. These taxpayers are not able to fully participate in electronic filing because the IRS cannot transmit their refunds to them electronically. The NTA recommended that the Department of Treasury develop a program to enable taxpayers to receive refunds on stored value cards. On April 15, 2010, a provision to require the Secretary of Treasury, in consultation with the National Taxpayer Advocate, to conduct a study on the feasibility of delivering federal tax refunds on debit cards, prepaid cards, or other electronic means passed the House in H.R. 4994, the Taxpayer Assistance Act of 2010. Study on timely processing and use of information returns Under current law, the IRS processes tax returns before it processes related information returns, such as Forms W-2 and Forms 1099. The IRS does not match information on income tax returns to information returns until after the filing season has ended. There are two reasons for the delay: (1) the deadline for filing information returns generally is March 31 and (2) the tax filing season begins in mid-January. A provision to require the Secretary of Treasury to study, and make recommendations on, the administrative and legislative steps required to allow the IRS to receive information returns before it processes income tax returns passed the House in H.R. 4994, the Taxpayer Assistance Act of 2010. Clarify that the bad check penalty applies to electronic payments Taxpayers are subject to a penalty if their check or money order in payment of their tax liabilities is not honored. On April 15, 2010, a provision to ensure fair application of the penalty by clarifying that the penalty applies to all commercially acceptable instruments of payment (i.e., electronic payments) passed the House in H.R. 4994, the Taxpayer Assistance Act of 2010. On July 2, 2010, this provision was enacted into law as part of the Homebuyer Assistance and Improvement Act of 2010 (P.L. 111-198). Trade The Trade Subcommittee is developing Customs and Border Protection (CBP) reauthorization legislation addressing two important oversight issues explored at a May 2010 hearing: (1) correcting the agency's failure to collect antidumping and countervailing duties; and (2) addressing cost overruns and delayed implementation of the agency's new, modernized computer system, the Automated Commercial Environment (ACE). Combating the Evasion of Antidumping and Countervailing Duty Orders The U.S. government loses hundreds of millions of dollars every year when foreign companies employ fraudulent tactics to evade U.S. antidumping and countervailing duty orders. Such tactics include misrepresenting the country of origin of imported products or mislabeling the types of products being imported on Customs import documentation. The resulting impact in the United States is two-fold. Not only is there lost revenue to the government, but also American businesses and workers are denied relief from the illegal trade practices that the antidumping and countervailing duties are designed to neutralize. The Trade Subcommittee is preparing legislation to counter these kinds of practices and aims to move that legislation shortly. This legislation: (1) establishes clear, expeditious timeframes for CBP to investigate and determine whether evasion is occurring; (2) requires maximum cooperation between CBP and the Department of Commerce in making and enforcing such determinations; and (3) provides authority for CBP to collect unpaid duties and assess penalties. This legislation will diminish substantially the duties lost to evasion as well as the corresponding harm to the U.S. industry. Ensuring Efficient Use of Taxpayer Dollars in Further ACE Deployment The Trade Subcommittee is preparing legislation that will support the positive steps taken by CBP since its May 20th hearing to get ACE deployment back on track and moving in the right direction. ACE development to date has cost over $3 billion, and the system continues to have limited functionality to attract a critical mass of users. Completion of ACE promises significant benefits to CBP, businesses, and workers alike, increasing U.S. competitiveness and saving taxpayer dollars. The Trade Subcommittee is developing legislation to ensure that: (1) ACE is completed expeditiously and with strong functionality; and (2) the funds invested in this project, going forward, are used efficiently and effectively. Social Security In December of 2009, Congress enacted H.R. 4218, the No Social Security Benefits for Prisoners Act of 2009 (P.L. 111- 115) to prevent retroactive Social Security and Supplemental Security Income benefit payments from being issued to individuals while they are in prison, along with beneficiaries in violation of conditions of parole or probation, or who are fleeing to avoid prosecution for a felony or a crime punishable by sentence of more than one year. The Social Security Act already barred payment of monthly benefits to such individuals. This new law ensures the prohibition applies to retroactive benefit payments as well, and allows payments to be paid once the beneficiary is no longer prohibited from receiving payments under the provisions of this bill. In response to a Social Security Administration Inspector General report that as many as eight states use prison industries to perform work that allows inmates access to individual Social Security numbers, Chairman Pomeroy introduced H.R. 5854, the No Prisoner Access to Social Security Numbers Act of 2010. The bill would protect the accuracy of Social Security records and help shield individuals from identity theft and other potential crimes by prohibiting federal, state, and local governments from employing prisoners in any capacity that would allow inmates access to full or partial SSNs of other individuals. The Federal Bureau of Prisons already proscribes such work by federal inmates by regulation. This bill would extend this policy to all of the states. In recent years, we have substantially increased funding for program integrity at the Social Security Administration, which will save billions of dollars in overpayments and payments to people who have become ineligible for benefits. Because the Social Security Administration uses innovative predictive modeling techniques to identify cases with the highest risk of an overpayment and targets those cases for careful review, they are able to generate savings of as much as $12 for every dollar invested in program integrity, despite Social Security's already very low error rate. For example, in 2008 their computer models allowed them to target the beneficiaries most likely to have medically improved for full eligibility reviews, saving $3.8 billion in Social Security, Medicare, Medicaid, and SSI benefits. If SSA had randomly selected cases for intensive review, they would only have saved $900 million. Because the return on investment is so significant, we plan to work on legislation that will increase our investment in Social Security's fight against fraud, waste, and abuse.

Mr. LEVIN

Mr. LEVIN. I yield myself 2 minutes. The minority comes here and talks about wishing to be back at a jobs fair for those who are unemployed and looking for work, having voted against continuing unemployment compensation for those out of work and looking for it. The minority comes here talking about help for small business, having voted against Democratic bills to help small business. On this bill this is not an increase in taxes on job creation. What it is is closing a tax loophole used by some to escape taxes and thereby encouraging them to ship jobs overseas, purely and simply. This is a fact: U.S. companies that operate overseas owe taxes when they return that income to the U.S. They get a foreign tax credit for the taxes they paid overseas. What some companies are doing is using those tax credits not against income brought back home but against income obtained elsewhere. This is a tax loophole purely and simply, and closing a tax loophole used by a few is fair taxation policy for everybody else. That's what the people of this country demand: Close tax loopholes that help shift jobs overseas. We're doing just that in this bill, as we have done several other times in the House of Representatives. Madam Speaker, I and Ways and Means Committee Ranking Member Camp have asked the nonpartisan Joint Committee on Taxation to make available to the public a technical explanation of the revenue provisions included in the Senate amendment to the House amendment to the Senate amendment to H.R. 1586, the ``Education Jobs and Medicaid Assistance Act of 2010,'' considered in the House of Representatives today. This technical explanation provides information on the Committee's understanding and legislative intent behind the legislation. It is available on the Joint Committee's website at www.jct.gov and is listed under document number JCX-46-10. I reserve the balance of my time.

Mr. LEVIN. Madam Speaker, I yield 2 minutes to the very distinguished gentleman from Texas (Mr. Doggett), who has been a champion on the issue of tax loopholes, a member of the Ways and Means Committee.

Mr. LEVIN. Madam Speaker, on that I demand the yeas and nays.

Mr. LEVIN. I now yield 2 minutes to the gentlelady from Ohio (Ms. Kilroy).

Mr. LEVIN. It is now my true pleasure to yield 1 minute to our very distinguished majority leader, the colleague from the great State of Maryland (Mr. Hoyer).

Mr. LEVIN. Madam Speaker, I yield the balance of our time to our distinguished Speaker, the gentlewoman from California (Ms. Pelosi).

Mr. LEVIN

Mr. LEVIN. We received a couple-minutes' notice of the motion to recommit.

Mr. LEVIN. I yield to the gentleman from Michigan.

Mr. LEVIN. Mr. Speaker, again I urge all Members to support this legislation, which has indeed been posted online. This bill would eliminate a reporting requirement which has been identified as a potentially onerous burden for small businesses. The provision itself is not currently in place--it does not take effect until 2012--but recent studies have indicated that it could pose challenges for small businesses throughout this country. The Independent Taxpayer Advocate recently stated the provision, ``may present significant administrative challenges to taxpayers and the IRS.'' The advocate is concerned that the reporting requirement for small business--and again I quote--``may turn out to be disproportionate as compared with any resulting improvement in tax compliance.'' So here we are today to provide this House with an up-or-down vote on eliminating this requirement. This bill is fiscally responsible, covering the cost by reducing tax incentives that encourage companies to ship jobs overseas. This is a win-win for American jobs. This bill both provides relief to small businesses and reduces incentives for some large, multinational corporations to ship jobs overseas. It also closes an egregious loophole in the gift tax, the Grantor Retained Annuity Trust, that is only available for extremely wealthy individuals. So in a few words, all Members on both sides of the aisle have a choice today--to stand up for millions of American small businesses and their workers, or keep a tax loophole and side with those companies that ship jobs overseas. Mr. Speaker, I reserve the balance of my time.

Mr. LEVIN. Mr. Speaker, I urge all Members to support this legislation that indeed has been posted online.

Mr. LEVIN. I now yield 3 minutes to a very distinguished colleague of ours from New York (Mr. Owens).

Mr. LEVIN. Mr. Speaker, I yield myself such time as I may consume. Number one, you received more notice about this than we did about your motion to recommit.

Mr. LEVIN. Madam Speaker, on that I demand the yeas and nays.