HOUSE PASSES H.R. 6111, TAX RELIEF AND HEALTH CARE ACT

Washington, Dec 8, 2006 - "The yield of the tax-relief provisions we enacted for the American includes seven million new jobs since 2003, an increase in after-tax income of $2,777 per person, and solid economic growth," stated Stearns.  "This bill extends various tax provisions, preventing tax increases on working and retired Americans.  I am especially pleased that it extends the deduction for state and local sales taxes."

The House today approved H.R. 6111, which allows taxpayers to deduct up to $4,000 for higher-education tuition, extends the research & development tax credit, allows teachers to deduct their classroom expenses, and extends the deduction for state and local sales taxes.  In 2004, Stearns got the entire Florida delegation to support this provision.  Explained Stearns, "Tax reform legislation enacted in 1986 removed the deductibility of states sales taxes, but state income taxes remain deductible.  However, nine states, including Florida, do not have income taxes, using, instead, a state sales tax."

H.R. 6111 also increases payments for physician services and implements a quality reporting system for physician services.  Added Stearns, "This bill prevents physician payment cuts in 2007 by freezing payment rates for physician services.  It also provides a 1.5 percent bonus-incentive payment to physicians who report on quality measures in 2007. In addition, this bill contains a Medicaid victory for nursing homes and hospitals, such as Shands, by forestalling harmful action the Administration had planned through the Medicaid provider tax."  Stearns' work on this issue earned him the 2006 Safety Net Award for Congressional Leadership from the National Association of Public Hospitals & Health Systems.

In addition, H.R. 6111 opens 8.3 million acres of the outer continental shelf for oil and gas leasing.  It is estimated that this area contains 1.3 billion barrels of oil and 5.8 trillion cubic feet of natural gas.  Said Stearns, "Although increasing domestic energy production is vital, we also must safeguard our coasts.   I strongly support the provision establishing a no-drill zone 125 miles from the Florida Panhandle and 235 miles from Florida's Gulf Coast." Stearns had led efforts to give Florida the ability to block permanently any new drilling in its waters, and this measure passed in the House.  However, no Senate action was taken on that bill.