3% Withholding Repeal And Job Creation Act
Madam Speaker, today the House is considering legislation that will repeal the onerous requirement that federal, state, and local government entities withhold three percent of payments to government contractors. H.R. 674 will also take the…
Madam Speaker, today the House is considering legislation that will repeal the onerous requirement that federal, state, and local government entities withhold three percent of payments to government contractors. H.R. 674 will also take the first step in passing a piece of the President's American Jobs Act, by providing tax credits for businesses that hire unemployed or disabled veterans, and will help provide servicemembers who are leaving the service with job training and other skills necessary for starting a career outside of the military.
While I support these initiatives, I am disappointed that my friends in the House and Senate are pairing two bipartisan pieces of legislation with legislation that will change the intent of the Affordable Care Act and roll back eligibility for middle-class Americans to qualify for tax credits in the new Health Insurance Exchanges or Medicaid and CHIP.
As a veteran myself, I want nothing more than to help veterans to find gainful employment after the military and I believe that as we draw near the end of our engagement in Iraq and Afghanistan the need for this assistance is paramount. I will also gladly help my colleagues on the other side of the aisle to repeal their own three percent withholding requirement which we have delayed year after year. What I do not support is how we will pay for this repeal--on the backs of middle class Americans who as a result may find themselves paying more for their health care.
This legislation will add Social Security income back into the calculation of the Modified Adjusted Gross Income or MAGI for purposes of determining eligibility for the premium tax credits in the exchange and for Medicaid and CHIP. Some have suggested that excluding nontaxable Social Security benefits in the MAGI definition was a glitch. This is not so. The Affordable Care Act used the definition of MAGI that excluded nontaxable Social Security benefits because it is typical when determining eligibility for tax benefits.
Changing the MAGI definition to add Social Security income back in will make 500,000 to 1 million people ineligible for Medicaid and Chip and ineligible for premium tax credits. This will impose high costs for health care on low-income and middle-income families, early retirees and the disabled, and consequently could shift them out of Medicaid coverage or require increased out-of-pocket costs for health coverage. This goes against the very intent of the Affordable Care Act.
Madam Speaker, I oppose the sort of legislating that is before us today as I believe each chamber should be allowed to work its will on separate items, rather than be forced to accept bad policy sandwiched between pieces of bipartisan legislation. This goes against the pledge to openness and transparency my Republican colleagues have claimed to support.
While I will lend my support to the legislation before us, I cannot continue to accept such abuses of procedure.