S.Amdt. 2993

SA 2993. Mr. SCHUMER (for himself and Mrs. Lincoln) submitted an
amendment intended to be proposed to amendment SA 2786 proposed by Mr.
Reid (for himself, Mr. Baucus, Mr. Dodd, and Mr. Harkin) to the bill
H.R. 3590, to amend the Internal Revenue Code of 1986 to modify the
first-time homebuyers credit in the case of members of the Armed Forces
and certain other Federal employees, and for other purposes; which was
ordered to lie on the table; as follows:

On page 1999, strike lines 9 through 17 and insert the
following:
``(i) Limitation on Health Flexible Spending
Arrangements.--
``(1) In general.--For purposes of this section, if a
benefit is provided under a cafeteria plan through employer
contributions to a health flexible spending arrangement, such
benefit shall not be treated as a qualified benefit unless
the cafeteria plan provides that an employee may not elect
for any taxable year to have salary reduction contributions
in excess of $2,500 made to such arrangement.
``(2) Adjustment for inflation.--In the case of a taxable
year beginning in any calendar year after 2011, the dollar
amount in paragraph (1) shall be increased to the amount
equal to such amount as in effect for taxable years beginning
in the calendar year preceding such calendar year, increased
by an amount equal to the product of--
``(A) such amount as so in effect, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for such calendar year by substituting the
calendar year that is 2 years before such calendar year for
`calendar year 1992' in subparagraph (B) thereof, increased
by 1 percentage point.

If any increase determined under this paragraph is not a
multiple of $50, such increase shall be rounded to the
nearest multiple of $50.''.
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