To amend the Internal Revenue Code of 1986 to repeal certain tax increases.

Summary: Keeping Promises to Taxpayers Act of 2012 - Amends the Internal Revenue Code and the Patient Protection and Affordable Care Act to repeal certain health care-related taxes and other provisions, including: (1) the requirement that certain employers provide their employees with health insurance coverage and report on such coverage, (2) the excise tax on excess benefits from employer-sponsored health care coverage, (3) the requirement that distributions from a health savings account be used to pay for prescription drugs and insulin only (thus allowing for payment of over-the-counter medications), (4) the increase (from 7.5% to 10%) in the income threshold for the medical expense tax deduction, (5) the $2,500 limitation on contributions to health flexible spending arrangements, (6) the annual fees required for businesses providing health insurance and manufacturers or importers of branded prescription drugs, (7) the Patient-Centered Outcomes Research Trust Fund, (8) the fee imposed on insured and self-insured health plans, (9) the excise taxes on medical device manufacturers and importers and on indoor tanning services, (10) the increase (from 10% to 20%) in the penalty for distributions from health savings accounts and Archer medical savings accounts not used for qualified medical expenses, and (11) the increase in the tobacco production excise tax.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Keeping Promises 
to Taxpayers Act of 2012''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Repeal of employer health insurance mandate.
Sec. 3. Repeal of excise tax on high cost employer-sponsored health 
                            coverage.
Sec. 4. Repeal of over-the-counter drug limitation.
Sec. 5. Repeal of increase in medical expense threshold.
Sec. 6. Repeal of limitation on health flexible spending arrangements 
                            under cafeteria plans.
Sec. 7. Repeal of annual fee on health insurance providers.
Sec. 8. Repeal of annual fee on branded prescription pharmaceutical 
                            manufacturers and importers.
Sec. 9. Repeal of excise tax on medical device manufacturers.
Sec. 10. Repeal of tax on indoor tanning services.
Sec. 11. Repeal of PCORTF and fees imposed on insured and self-insured 
                            health plans.
Sec. 12. Repeal of increase in additional tax on non-qualified 
                            distributions from HSAs and Archer MSAs.
Sec. 13. Repeal of tobacco product excise tax increase.

SEC. 2. REPEAL OF EMPLOYER HEALTH INSURANCE MANDATE.

    (a) In General.--Chapter 43 of the Internal Revenue Code of 1986 is 
amended by striking section 4980H.
    (b) Repeal of Related Reporting Requirements.--Subpart D of part 
III of subchapter A of chapter 61 of such Code is amended by striking 
section 6056.
    (c) Conforming Amendments.--
            (1) Subparagraph (B) of section 6724(d)(1) of such Code is 
        amended by striking clause (xxv), by inserting ``or'' at the 
        end of clause (xxiii), by striking ``or'' and inserting ``and'' 
        at the end of clause (xxiv).
            (2) Paragraph (2) of section 6724(d) of such Code is 
        amended by striking subparagraph (HH), by inserting ``or'' at 
        the end of subparagraph (FF), and by striking ``or'' at the end 
        of subparagraph (GG) and inserting a period.
            (3) The table of sections for chapter 43 of such Code is 
        amended by striking the item relating to section 4980H.
            (4) The table of sections for subpart D of part III of 
        subchapter A of chapter 61 of such Code is amended by striking 
        the item relating to section 6056.
            (5) Section 1513 of the Patient Protection and Affordable 
        Care Act is amended by striking subsection (c).
    (d) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        months and other periods beginning after December 31, 2013.
            (2) Repeal of study and report.--The amendment made by 
        subsection (c)(5) shall take effect on the date of the 
        enactment of this Act.

SEC. 3. REPEAL OF EXCISE TAX ON HIGH COST EMPLOYER-SPONSORED HEALTH 
              COVERAGE.

    (a) In General.--Chapter 43 of the Internal Revenue Code of 1986 is 
amended by striking section 4980I.
    (b) Clerical Amendment.--The table of sections for chapter 43 of 
such Code is amended by striking the item relating to section 4980I.

SEC. 4. REPEAL OF OVER-THE-COUNTER DRUG LIMITATION.

    (a) HSAs.--Subparagraph (A) of section 223(d)(2) of the Internal 
Revenue Code of 1986 is amended by striking the last sentence.
    (b) Archer MSAs.--Subparagraph (A) of section 220(d)(2) of such 
Code is amended by striking the last sentence.
    (c) Health Flexible Spending Arrangements and Health Reimbursement 
Arrangements.--Section 105 of such Code is amended by striking 
subsection (f).
    (d) Effective Dates.--
            (1) Distributions.--The amendments made by subsections (a) 
        and (b) shall apply to amounts paid with respect to taxable 
        years beginning after the date of the enactment of this Act.
            (2) Reimbursements.--The amendment made by subsection (c) 
        shall apply to expenses incurred with respect to taxable years 
        beginning after the date of the enactment of this Act.

SEC. 5. REPEAL OF INCREASE IN MEDICAL EXPENSE THRESHOLD.

    Section 9013 of the Patient Protection and Affordable Care Act, and 
the amendments made thereby, are hereby repealed; and the Internal 
Revenue Code of 1986 shall be applied and administered as if such 
section and amendments had never been enacted.

SEC. 6. REPEAL OF LIMITATION ON HEALTH FLEXIBLE SPENDING ARRANGEMENTS 
              UNDER CAFETERIA PLANS.

    Section 125 of the Internal Revenue Code of 1986 is amended by 
striking subsection (i) and by redesignating subsections (j) and (k) as 
subsections (i) and (j), respectively.

SEC. 7. REPEAL OF ANNUAL FEE ON HEALTH INSURANCE PROVIDERS.

    Section 9010 of the Patient Protection and Affordable Care Act is 
hereby repealed.

SEC. 8. REPEAL OF ANNUAL FEE ON BRANDED PRESCRIPTION PHARMACEUTICAL 
              MANUFACTURERS AND IMPORTERS.

    Effective for calendar years beginning after 2011, section 9008 of 
the Patient Protection and Affordable Care is repealed.

SEC. 9. REPEAL OF EXCISE TAX ON MEDICAL DEVICE MANUFACTURERS.

    (a) In General.--Subchapter E of chapter 32 of the Internal Revenue 
Code of 1986 is hereby repealed.
    (b) Conforming Amendments.--
            (1) Subsection (a) of section 4221 of such Code is amended 
        by striking the last sentence.
            (2) Paragraph (2) of section 6416(b) of such Code is 
        amended by striking the last sentence.
            (3) The table of subchapters for chapter 32 of such Code is 
        amended by striking the item relating to subchapter E.

SEC. 10. REPEAL OF TAX ON INDOOR TANNING SERVICES.

    (a) In General.--Chapter 49 of the Internal Revenue Code of 1986 is 
hereby repealed.
    (b) Clerical Amendment.--The table of chapters for subtitle D of 
such Code is amended by striking the item relating to chapter 49.
    (c) Effective Date.--The amendments made by this section shall 
apply to services performed after the date of the enactment of this 
Act.

SEC. 11. REPEAL OF PCORTF AND FEES IMPOSED ON INSURED AND SELF-INSURED 
              HEALTH PLANS.

    (a) Trust Fund.--Section 9511 of the Internal Revenue Code of 1986 
is hereby repealed.
    (b) Insured and Self-Insured Health Plans Fee.--Subchapter B of 
chapter 34 of such Code is hereby repealed.
    (c) Clerical Amendments.--
            (1) The table of sections for subchapter A of chapter 98 of 
        such Code is amended by striking the item relating to section 
        9511.
            (2) The table of subchapters for chapter 34 of such Code is 
        amended by striking the item relating to subchapter B.

SEC. 12. REPEAL OF INCREASE IN ADDITIONAL TAX ON NON-QUALIFIED 
              DISTRIBUTIONS FROM HSAS AND ARCHER MSAS.

    (a) HSAs.--Subparagraph (A) of section 223(f)(4) of the Internal 
Revenue Code of 1986 is amended by striking ``20 percent'' and 
inserting ``10 percent''.
    (b) Archer MSAs.--Subparagraph (A) of section 220(f)(4) of such 
Code is amended by striking ``20 percent'' and inserting ``10 
percent''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions made after the date of the enactment of this 
Act.

SEC. 13. REPEAL OF TOBACCO PRODUCT EXCISE TAX INCREASE.

    (a) In General.--Each provision of the Internal Revenue Code of 
1986 amended by section 701 of the Children's Health Insurance Program 
Reauthorization Act of 2009 is amended as such provision would read if 
such section had never been enacted.
    (b) Floor Stocks Refund.--
            (1) In general.--On tobacco products and cigarette papers 
        and tubes manufactured in or imported into the United States 
        which are removed on or before the date of the enactment of 
        this Act, and held on such date for sale by any person, there 
        shall be credited or refunded (without interest) to the person 
        who paid such tax (hereafter in this subsection referred to as 
        the ``taxpayer'') an amount equal to the excess of the tax paid 
        by the taxpayer on the article over the amount of such tax 
        which would be imposed on such article had the article been 
        removed on the day after the date of the enactment of this Act.
            (2) Time for filing claims.--No credit or refund shall be 
        allowed or made under this subsection unless claim therefor is 
        filed with the Secretary of the Treasury before the date which 
        is 6 months after the date of the enactment of this Act.
            (3) Definitions.--Any term used in this subsection which is 
        also used in section 5702 of the Internal Revenue Code of 1986 
        shall have the same meaning as such term has in such section.
            (4) Controlled groups.--Rules similar to the rules of 
        section 5061(e)(3) of such Code shall apply for purposes of 
        this subsection.
    (c) Effective Date.--The amendments made by this section shall 
apply to articles removed (as defined in section 5702(j) of the 
Internal Revenue Code of 1986) after the date of the enactment of this 
Act.