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 provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to repeal 
certain tax increases. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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: 
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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 caf-
eteria plans. 
Sec. 7. Repeal of annual fee on health insurance providers. 
Sec. 8. Repeal of annual fee on branded prescription pharmaceutical manufac-
turers 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 MAN-
DATE. 
(a) IN GENERAL.—Chapter 43 of the Internal Rev-
enue Code of 1986 is amended by striking section 4980H. 
(b) REPEAL
OF RELATED REPORTING REQUIRE-
MENTS.—Subpart D of part III of subchapter A of chap-
ter 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 strik-
ing ‘‘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 
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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 sec-
tion 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 sub-
section (c). 
(d) EFFECTIVE DATES.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided 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 ef-
fect 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 Rev-
enue Code of 1986 is amended by striking section 4980I. 
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(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 LIMITA-
TION. 
(a) HSAS.—Subparagraph (A) of section 223(d)(2) 
of the Internal Revenue Code of 1986 is amended by strik-
ing 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.—Sec-
tion 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. 
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SEC. 5. REPEAL OF INCREASE IN MEDICAL EXPENSE 
THRESHOLD. 
Section 9013 of the Patient Protection and Afford-
able 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 CAFE-
TERIA 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), respec-
tively. 
SEC. 7. REPEAL OF ANNUAL FEE ON HEALTH INSURANCE 
PROVIDERS. 
Section 9010 of the Patient Protection and Afford-
able Care Act is hereby repealed. 
SEC. 8. REPEAL OF ANNUAL FEE ON BRANDED PRESCRIP-
TION PHARMACEUTICAL MANUFACTURERS 
AND IMPORTERS. 
Effective for calendar years beginning after 2011, 
section 9008 of the Patient Protection and Affordable 
Care is repealed. 
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SEC. 9. REPEAL OF EXCISE TAX ON MEDICAL DEVICE MAN-
UFACTURERS. 
(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 Rev-
enue 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 IN-
SURED AND SELF-INSURED HEALTH PLANS. 
(a) TRUST FUND.—Section 9511 of the Internal Rev-
enue Code of 1986 is hereby repealed. 
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(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 strik-
ing ‘‘20 percent’’ and inserting ‘‘10 percent’’. 
(b) ARCHER MSAS.—Subparagraph (A) of section 
220(f)(4) of such Code is amended by striking ‘‘20 per-
cent’’ 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. 
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SEC. 13. REPEAL OF TOBACCO PRODUCT EXCISE TAX IN-
CREASE. 
(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 im-
ported 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 per-
son 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 ar-
ticle over the amount of such tax which would be im-
posed 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 re-
fund 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. 
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(3) DEFINITIONS.—Any term used in this sub-
section which is also used in section 5702 of the In-
ternal 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. 
Æ 
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