[Page S1765]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  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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