I 

112TH CONGRESS 

2D SESSION H. R. 4064 

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

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 16, 2012 

Mr. MULVANEY (for himself, Mr. DUNCAN of South Carolina, Mr. WILSON of 

South Carolina, Mr. WALSH of Illinois, Mr. CANSECO, Mr. BROUN of 

Georgia, Mr. FINCHER, Mr. WESTMORELAND, Mr. GRAVES of Georgia, 

Mr. SCHWEIKERT, Mr. MARCHANT, Mr. FLORES, Mr. ROE of Tennessee, 

Mr. YODER, and Mr. HUELSKAMP) introduced the following bill; which 

was referred to the Committee on Ways and Means, and in addition to 

the Committee on Energy and Commerce, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to repeal 

certain tax increases. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Keeping Promises to Taxpayers Act of 2012’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 


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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. 

1 SEC. 2. REPEAL OF EMPLOYER HEALTH INSURANCE MAN2 DATE. 

3 (a) IN GENERAL.—Chapter 43 of the Internal Rev4 enue Code of 1986 is amended by striking section 4980H. 

5 (b) REPEAL OF RELATED REPORTING REQUIRE6 MENTS.—Subpart D of part III of subchapter A of chap7 ter 61 of such Code is amended by striking section 6056. 

8 (c) CONFORMING AMENDMENTS.— 

9 (1) Subparagraph (B) of section 6724(d)(1) of 

10 such Code is amended by striking clause (xxv), by 

11 inserting ‘‘or’’ at the end of clause (xxiii), by strik12 ing ‘‘or’’ and inserting ‘‘and’’ at the end of clause 

13 (xxiv). 

14 (2) Paragraph (2) of section 6724(d) of such 

15 Code is amended by striking subparagraph (HH), by 

16 inserting ‘‘or’’ at the end of subparagraph (FF), and 


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1 by striking ‘‘or’’ at the end of subparagraph (GG) 

2 and inserting a period. 

3 (3) The table of sections for chapter 43 of such 

4 Code is amended by striking the item relating to sec5 tion 4980H. 

6 (4) The table of sections for subpart D of part 

7 III of subchapter A of chapter 61 of such Code is 

8 amended by striking the item relating to section 

9 6056. 

10 (5) Section 1513 of the Patient Protection and 

11 Affordable Care Act is amended by striking sub12 section (c). 

13 (d) EFFECTIVE DATES.— 

14 (1) IN GENERAL.—Except as otherwise pro15 vided in this subsection, the amendments made by 

16 this section shall apply to months and other periods 

17 beginning after December 31, 2013. 

18 (2) REPEAL OF STUDY AND REPORT.—The 

19 amendment made by subsection (c)(5) shall take ef20 fect on the date of the enactment of this Act. 

21 SEC. 3. REPEAL OF EXCISE TAX ON HIGH COST EMPLOYER22 SPONSORED HEALTH COVERAGE. 

23 (a) IN GENERAL.—Chapter 43 of the Internal Rev24 enue Code of 1986 is amended by striking section 4980I. 


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1 (b) CLERICAL AMENDMENT.—The table of sections 

2 for chapter 43 of such Code is amended by striking the 

3 item relating to section 4980I. 

4 SEC. 4. REPEAL OF OVER-THE-COUNTER DRUG LIMITA5 TION. 

6 (a) HSAS.—Subparagraph (A) of section 223(d)(2) 

7 of the Internal Revenue Code of 1986 is amended by strik8 ing the last sentence. 

9 (b) ARCHER MSAS.—Subparagraph (A) of section 

10 220(d)(2) of such Code is amended by striking the last 

11 sentence. 

12 (c) HEALTH FLEXIBLE SPENDING ARRANGEMENTS

13 AND HEALTH REIMBURSEMENT ARRANGEMENTS.—Sec14 tion 105 of such Code is amended by striking subsection 

15 (f). 

16 (d) EFFECTIVE DATES.— 

17 (1) DISTRIBUTIONS.—The amendments made 

18 by subsections (a) and (b) shall apply to amounts 

19 paid with respect to taxable years beginning after 

20 the date of the enactment of this Act. 

21 (2) REIMBURSEMENTS.—The amendment made 

22 by subsection (c) shall apply to expenses incurred 

23 with respect to taxable years beginning after the 

24 date of the enactment of this Act. 


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1 SEC. 5. REPEAL OF INCREASE IN MEDICAL EXPENSE 

2 THRESHOLD. 

3 Section 9013 of the Patient Protection and Afford4 able Care Act, and the amendments made thereby, are 

5 hereby repealed; and the Internal Revenue Code of 1986 

6 shall be applied and administered as if such section and 

7 amendments had never been enacted. 

8 SEC. 6. REPEAL OF LIMITATION ON HEALTH FLEXIBLE 

9 SPENDING ARRANGEMENTS UNDER CAFE10 TERIA PLANS. 

11 Section 125 of the Internal Revenue Code of 1986 

12 is amended by striking subsection (i) and by redesignating 

13 subsections (j) and (k) as subsections (i) and (j), respec14 tively. 

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

16 PROVIDERS. 

17 Section 9010 of the Patient Protection and Afford18 able Care Act is hereby repealed. 

19 SEC. 8. REPEAL OF ANNUAL FEE ON BRANDED PRESCRIP20 TION PHARMACEUTICAL MANUFACTURERS 

21 AND IMPORTERS. 

22 Effective for calendar years beginning after 2011, 

23 section 9008 of the Patient Protection and Affordable 

24 Care is repealed. 


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1 SEC. 9. REPEAL OF EXCISE TAX ON MEDICAL DEVICE MAN2 UFACTURERS. 

3 (a) IN GENERAL.—Subchapter E of chapter 32 of the 

4 Internal Revenue Code of 1986 is hereby repealed. 

5 (b) CONFORMING AMENDMENTS.— 

6 (1) Subsection (a) of section 4221 of such Code 

7 is amended by striking the last sentence. 

8 (2) Paragraph (2) of section 6416(b) of such 

9 Code is amended by striking the last sentence. 

10 (3) The table of subchapters for chapter 32 of 

11 such Code is amended by striking the item relating 

12 to subchapter E. 

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

14 (a) IN GENERAL.—Chapter 49 of the Internal Rev15 enue Code of 1986 is hereby repealed. 

16 (b) CLERICAL AMENDMENT.—The table of chapters 

17 for subtitle D of such Code is amended by striking the 

18 item relating to chapter 49. 

19 (c) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to services performed after the 

21 date of the enactment of this Act. 

22 SEC. 11. REPEAL OF PCORTF AND FEES IMPOSED ON IN23 SURED AND SELF-INSURED HEALTH PLANS. 

24 (a) TRUST FUND.—Section 9511 of the Internal Rev25 enue Code of 1986 is hereby repealed. 


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1 (b) INSURED AND SELF-INSURED HEALTH PLANS

2 FEE.—Subchapter B of chapter 34 of such Code is hereby 

3 repealed. 

4 (c) CLERICAL AMENDMENTS.— 

5 (1) The table of sections for subchapter A of 

6 chapter 98 of such Code is amended by striking the 

7 item relating to section 9511. 

8 (2) The table of subchapters for chapter 34 of 

9 such Code is amended by striking the item relating 

10 to subchapter B. 

11 SEC. 12. REPEAL OF INCREASE IN ADDITIONAL TAX ON 

12 NON-QUALIFIED DISTRIBUTIONS FROM HSAS 

13 AND ARCHER MSAS. 

14 (a) HSAS.—Subparagraph (A) of section 223(f)(4) 

15 of the Internal Revenue Code of 1986 is amended by strik16 ing ‘‘20 percent’’ and inserting ‘‘10 percent’’. 

17 (b) ARCHER MSAS.—Subparagraph (A) of section 

18 220(f)(4) of such Code is amended by striking ‘‘20 per19 cent’’ and inserting ‘‘10 percent’’. 

20 (c) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to distributions made after the 

22 date of the enactment of this Act. 


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1 SEC. 13. REPEAL OF TOBACCO PRODUCT EXCISE TAX IN2 CREASE. 

3 (a) IN GENERAL.—Each provision of the Internal 

4 Revenue Code of 1986 amended by section 701 of the 

5 Children’s Health Insurance Program Reauthorization 

6 Act of 2009 is amended as such provision would read if 

7 such section had never been enacted. 

8 (b) FLOOR STOCKS REFUND.— 

9 (1) IN GENERAL.—On tobacco products and 

10 cigarette papers and tubes manufactured in or im11 ported into the United States which are removed on 

12 or before the date of the enactment of this Act, and 

13 held on such date for sale by any person, there shall 

14 be credited or refunded (without interest) to the per15 son who paid such tax (hereafter in this subsection 

16 referred to as the ‘‘taxpayer’’) an amount equal to 

17 the excess of the tax paid by the taxpayer on the ar18 ticle over the amount of such tax which would be im19 posed on such article had the article been removed 

20 on the day after the date of the enactment of this 

21 Act. 

22 (2) TIME FOR FILING CLAIMS.—No credit or re23 fund shall be allowed or made under this subsection 

24 unless claim therefor is filed with the Secretary of 

25 the Treasury before the date which is 6 months 

26 after the date of the enactment of this Act. 


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1 (3) DEFINITIONS.—Any term used in this sub2 section which is also used in section 5702 of the In3 ternal Revenue Code of 1986 shall have the same 

4 meaning as such term has in such section. 

5 (4) CONTROLLED GROUPS.—Rules similar to 

6 the rules of section 5061(e)(3) of such Code shall 

7 apply for purposes of this subsection. 

8 (c) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to articles removed (as defined in 

10 section 5702(j) of the Internal Revenue Code of 1986) 

11 after the date of the enactment of this Act. 

Æ 


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