S.Amdt. 516

SA 516. Mr. GRASSLEY (for himself and Mr. Hatch) submitted an
amendment intended to be proposed to amendment SA 98 proposed by Mr.
Inouye (for himself and Mr. Baucus) to the bill H.R. 1, making
supplemental appropriations for job preservation and creation,
infrastructure investment, energy efficiency and science, assistance to
the unemployed, and State and local fiscal stabilization, for fiscal
year ending September 30, 2009, and for other purposes; which was
ordered to lie on the table; as follows:

On page 625, after line 23, insert the following:
(c) Elimination of Premium Subsidy for High-Income
Individuals.--
(1) In general.--Notwithstanding subsection (b)(3), an
individual who is a covered employee (and any qualified
beneficiary of such employee) shall not be treated as an
assistance eligible individual for purposes of this section
and section 6432 of the Internal Revenue Code of 1986
unless--
(A) the covered employee's modified adjusted gross income
for the last taxable year beginning in 2008 does not exceed--
(i) $125,000 in the case of an individual whose filing
status for purposes of the income tax imposed by chapter 1 of
such Code is described in subsection (c) or (d) of section 1
of such Code (relating to certain unmarried individuals and
married individuals filing separate returns), and
(ii) $250,000 in the case of an individual whose filing
status for purposes of the income tax imposed by chapter 1 of
such Code is described in subsection (a) or (b) of section 1
of such Code (relating to married individuals filing joint
returns and surviving spouses and heads of households), and
(B) the covered employee provides to the entity to whom
premiums are reimbursed under section 6432(a) of such Code a
written certification meeting the requirements of paragraph
(2).
(2) Certification requirements.--A certification meets the
requirements of this paragraph if such certification
contains--
(A) the name and social security number of the covered
employee, and
(B) an attestation that the covered employee is eligible to
receive the subsidy under subsection (b) because the covered
employee's modified adjusted gross income for the last
taxable year beginning in 2008 is less than the applicable
limit under paragraph (1)(A).

The entity receiving such certification shall maintain it in
their records for at least 3 years after its receipt.
(3) Recapture of subsidy.--If--
(A) a covered employee's modified adjusted gross income for
the last taxable year beginning in 2008 exceeds the
applicable limit under paragraph (1)(A), and
(B) the covered employee (or any qualified beneficiary)
received any premium assistance under this section for 1 or
more months in a taxable year with respect to any COBRA
continuation coverage,

then the covered employee's tax imposed by chapter 1 of such
Code for such taxable year shall be increased by the amount
of such assistance.
(4) Provision of tin to secretary.--Section 6432(e)(1) of
the Internal Revenue Code of 1986, as added by subsection
(b)(12), is amended by striking ``and'' at the end of
subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting ``, and'', and by adding at
the end the following new subparagraph:
``(C) a report containing the TINs of all covered
employees, the amount of subsidy reimbursed with respect to
each covered employee and qualified beneficiaries, and a
designation with respect to each covered employee as to
whether the subsidy reimbursement is for coverage of 1
individual or 2 or more individuals.''.
(5) Modified adjusted gross income.--For purposes of this
subsection, the term ``modified adjusted gross income'' means
the adjusted gross income (as defined in section 62 of the
Internal Revenue Code of 1986) of the taxpayer for the
taxable year increased by any amount excluded from gross
income under section 911, 931, or 933 of such Code.
(6) Covered employee; qualified beneficiary.--For purposes
of this subsection, the terms ``covered employee'' and
``qualified beneficiary'' have the meanings given such terms
by section 4980B of such Code.
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