158 
individuals of limited English speaking ability, the 
applicant has developed a plan to meet the needs of 
such population to the extent practicable in the lan-
guage and cultural context most appropriate to such 
individuals. 
(6) The applicant will provide non-Federal con-
tributions toward the cost of the project in an 
amount determined by the Secretary. 
(7) The applicant will operate a quality assur-
ance program consistent with section 734(d). 
(e) DURATION OF GRANT.—A grant under this sec-
tion shall be for a period determined by the Secretary. 
(f) REPORTS.—A recipient of funding under this sec-
tion shall provide such reports and information as are re-
quired in regulations of the Secretary. 
SEC. 736. FEDERAL ADMINISTRATIVE COSTS. 
Of the amounts made available under section 731, the 
Secretary may reserve not more than 5 percent for admin-
istrative expenses regarding this subtitle. 
SEC. 737. DEFINITIONS. 
For purposes of this subtitle: 
(1) The term ‘‘adolescent children’’ has the 
meaning given such term in section 732(c). 
(2) The term ‘‘at risk’’ means at-risk with re-
spect to health. 
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(3) The term ‘‘community health center’’ has 
the meaning given such term in section 330 of the 
Public Health Service Act. 
(4) The term ‘‘health professional shortage 
area’’ means a health professional shortage area des-
ignated under section 332 of the Public Health Serv-
ice Act. 
(5) The term ‘‘medically underserved popu-
lation’’ has the meaning given such term in section 
330 of the Public Health Service Act. 
(6) The term ‘‘school-aged children’’ has the 
meaning given such term in section 732(c). 
TITLE VIII—FINANCING PROVI-
SIONS; 
AMERICAN 
HEALTH 
SECURITY TRUST FUND 
SEC. 800. AMENDMENT OF 1986 CODE; SECTION 15 NOT TO 
APPLY. 
(a) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this title an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
(b) SECTION 15 NOT TO APPLY.—The amendments 
made by subtitle B shall not be treated as a change in 
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160 
a rate of tax for purposes of section 15 of the Internal 
Revenue Code of 1986. 
Subtitle A—American Health 
Security Trust Fund 
SEC. 801. AMERICAN HEALTH SECURITY TRUST FUND. 
(a) IN GENERAL.—There is hereby created on the 
books of the Treasury of the United States a trust fund 
to be known as the American Health Security Trust Fund 
(in this section referred to as the ‘‘Trust Fund’’). The 
Trust Fund shall consist of such gifts and bequests as 
may be made and such amounts as may be deposited in, 
or appropriated to, such Trust Fund as provided in this 
Act. 
(b) APPROPRIATIONS INTO TRUST FUND.— 
(1) TAXES.—There are hereby appropriated to 
the Trust Fund for each fiscal year (beginning with 
fiscal year 2008), out of any moneys in the Treasury 
not otherwise appropriated, amounts equivalent to 
100 percent of the aggregate increase in tax liabil-
ities under the Internal Revenue Code of 1986 which 
is attributable to the application of the amendments 
made by this title. The amounts appropriated by the 
preceding sentence shall be transferred from time to 
time (but not less frequently than monthly) from the 
general fund in the Treasury to the Trust Fund, 
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161 
such amounts to be determined on the basis of esti-
mates by the Secretary of the Treasury of the taxes 
paid to or deposited into the Treasury; and proper 
adjustments shall be made in amounts subsequently 
transferred to the extent prior estimates were in ex-
cess of or were less than the amounts that should 
have been so transferred. 
(2) CURRENT
PROGRAM
RECEIPTS.—Notwith-
standing any other provision of law, there are hereby 
appropriated to the Trust Fund for each fiscal year 
(beginning with fiscal year 2008) the amounts that 
would otherwise have been appropriated to carry out 
the following programs: 
(A) The medicare program, under parts A, 
B, and D of title XVIII of the Social Security 
Act (other than amounts attributable to any 
premiums under such parts). 
(B) The medicaid program, under State 
plans approved under title XIX of such Act. 
(C) The Federal employees health benefit 
program, under chapter 89 of title 5, United 
States Code. 
(D) The TRICARE program (formerly 
known as the CHAMPUS program), under 
chapter 55 of title 10, United States Code. 
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162 
(E) The maternal and child health pro-
gram (under title V of the Social Security Act), 
vocational rehabilitation programs, programs 
for drug abuse and mental health services 
under the Public Health Service Act, programs 
providing general hospital or medical assistance, 
and any other Federal program identified by 
the Board, in consultation with the Secretary of 
the Treasury, to the extent the programs pro-
vide for payment for health services the pay-
ment of which may be made under this Act. 
(c) INCORPORATION OF PROVISIONS.—The provisions 
of subsections (b) through (i) of section 1817 of the Social 
Security Act shall apply to the Trust Fund under this Act 
in the same manner as they applied to the Federal Hos-
pital Insurance Trust Fund under part A of title XVIII 
of such Act, except that the American Health Security 
Standards Board shall constitute the Board of Trustees 
of the Trust Fund. 
(d) TRANSFER OF FUNDS.—Any amounts remaining 
in the Federal Hospital Insurance Trust Fund or the Fed-
eral Supplementary Medical Insurance Trust Fund after 
the settlement of claims for payments under title XVIII 
have been completed, shall be transferred into the Amer-
ican Health Security Trust Fund. 
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Subtitle B—Taxes Based on Income 
and Wages 
SEC. 811. PAYROLL TAX ON EMPLOYERS. 
(a) IN GENERAL.—Section 3111 (relating to tax on 
employers) is amended by redesignating subsection (c) as 
subsection (d) and inserting after subsection (b) the fol-
lowing new subsection: 
‘‘(c) HEALTH CARE.—In addition to other taxes, 
there is hereby imposed on every employer an excise tax, 
with respect to having individuals in his employ, equal to 
8.7 percent of the wages (as defined in section 3121(a)) 
paid by him with respect to employment (as defined in 
section 3121(b)).’’. 
(b) SELF-EMPLOYMENT INCOME.—Section 1401 (re-
lating to rate of tax on self-employment income) is amend-
ed by redesignating subsection (c) as subsection (d) and 
inserting after subsection (b) the following new subsection: 
‘‘(c) HEALTH CARE.—In addition to other taxes, 
there shall be imposed for each taxable year, on the self- 
employment income of every individual, a tax equal to 8.7 
percent of the amount of the self-employment income for 
such taxable year.’’. 
(c) COMPARABLE
TAXES
FOR
RAILROAD
SERV-
ICES.— 
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164 
(1) TAX
ON
EMPLOYERS.—Section 3221 is 
amended by redesignating subsection (c) as sub-
sections (d) and inserting after subsection (b) the 
following new subsection: 
‘‘(c) HEALTH CARE.—In addition to other taxes, 
there is hereby imposed on every employer an excise tax, 
with respect to having individuals in his employ, equal to 
8.7 percent of the compensation paid by such employer 
for services rendered to such employer.’’. 
(2) TAX ON EMPLOYEE REPRESENTATIVES.— 
Section 3211 (relating to tax on employee represent-
atives) is amended by redesignating subsection (c) as 
subsection (d) and inserting after subsection (b) the 
following new paragraph: 
‘‘(c) HEALTH CARE.—In addition to other taxes, 
there is hereby imposed on the income of each employee 
representative a tax equal to 8.7 percent of the compensa-
tion received during the calendar year by such employee 
representative for services rendered by such employee rep-
resentative.’’. 
(3) NO APPLICABLE BASE.—Subparagraph (A) 
of section 3231(e)(2) is amended by adding at the 
end thereof the following new clause: 
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