Congress Prepares $100 Million Bipartisan Flu Tax

Congress Prepares $100 Million Bipartisan Flu Tax



Congress is preparing to take action on a bipartisan proposal to
raise taxes on flu vaccines. This is not a tax on the wealthy, but
rather on a broad swath of Americans, or at least those who choose to be
immunized against the flu.
In February, identical bills were introduced in the House and Senate to add seasonal flu vaccines to the IRS code as taxable. The legislation would exact a 75¢ per dose tax on any "vaccine against seasonal influenza." Given that the Centers for Disease Control projects that
135 million doses of flu vaccine will be used this year, the
government's take on flu vaccines alone is over $100,000,000 per year.

Along with taxes on other vaccines, this tax would fund the Vaccine Injury Compensation Trust Fund.
The fund is a "no-fault alternative to the traditional tort system for
resolving vaccine injury claims that provides compensation to people
found to be injured by certain vaccines." However, the fund is by no
means in the same kind of trouble that other government "trust funds"
are.

The balance in the fund (as of November 2012) was more than $3.5 billion. Since the program's inception in 1988, the fund has paid out only $2.5 billion in 25 years for cases involving all vaccines,
not just the flu vaccine. This means the balance in the fund could
conceivably last another 25 years with no further tax revenue.

The House bill (H.R. 475) was submitted on February
4, by Republican Jim Gerlach with Democrat Richard Neal co-sponsoring,
and the Senate version (S. 391) was submitted by Democrat Max Baucus and
co-sponsor Republican Orrin Hatch. The same legislation had been
introduced in the 112th Congress just months ago. The House version died in committee, but the Senate version actually passed by unanimous consent the day it was introduced.

Now, a posting on the Senate website reports that the Senate has reached an agreement on
the current legislation. Although this flu season is winding down now,
the tax could easily be in place by next winter if the House follows
suit and the president signs it:

<blockquote>The Senate reached an agreement that if
the Senate receives H.R.475 from the House of Representatives and the
bill is identical to the text of which is at the desk, then the bill be
read three times and the Senate proceed to a vote, at a time to be
determined by the Majority Leader in consultation with the Minority
Leader, with no intervening action or debate. H.R.475, a bill to amend
the internal Revenue Code of 1986 to include vaccines against seasonal
influenza within the definition of taxable vaccines.

</blockquote>
As is the case with all government "trust funds," there is no cash set aside to pay out claims. According to the November 2012 report on
the vaccine trust, the $3.5 billion balance is invested in "US Treasury
Securities." In other words, financing a portion of the $16.5 trillion
national debt.


Source:-
http://m.weeklystandard.com/blogs/congress-prepares-100-million-bipartisan-flu-tax_719108.html