State Of New York et al v. Mnuchin et al

Filing 47

DECLARATION of Owen T. Conroy in Support re: 44 CROSS MOTION for Summary Judgment .. Document filed by State Of Connecticut, State Of New York, State of Maryland, State of New Jersey. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Exhibit 6, # 7 Exhibit 7, # 8 Exhibit 8, # 9 Exhibit 9, # 10 Exhibit 10, # 11 Exhibit 11, # 12 Exhibit 12, # 13 Exhibit 13, # 14 Exhibit 14, # 15 Exhibit 15, # 16 Exhibit 16, # 17 Exhibit 17, # 18 Exhibit 18, # 19 Exhibit 19, # 20 Exhibit 20, # 21 Exhibit 21, # 22 Exhibit 22, # 23 Exhibit 23, # 24 Exhibit 24, # 25 Exhibit 25, # 26 Exhibit 26, # 27 Exhibit 27, # 28 Exhibit 28, # 29 Exhibit 29, # 30 Exhibit 30, # 31 Exhibit 31, # 32 Exhibit 32, # 33 Exhibit 33, # 34 Exhibit 34, # 35 Exhibit 35, # 36 Exhibit 36, # 37 Exhibit 37, # 38 Exhibit 38, # 39 Exhibit 39, # 40 Exhibit 40, # 41 Exhibit 41, # 42 Exhibit 42, # 43 Exhibit 43, # 44 Exhibit 44, # 45 Exhibit 45, # 46 Exhibit 46, # 47 Exhibit 47, # 48 Exhibit 48, # 49 Exhibit 49, # 50 Exhibit 50, # 51 Exhibit 51, # 52 Exhibit 52, # 53 Exhibit 53, # 54 Exhibit 54, # 55 Exhibit 55, # 56 Exhibit 56, # 57 Exhibit 57, # 58 Exhibit 58, # 59 Exhibit 59, # 60 Exhibit 60, # 61 Exhibit 61, # 62 Exhibit 62, # 63 Exhibit 63, # 64 Exhibit 64, # 65 Exhibit 65, # 66 Exhibit 66, # 67 Exhibit 67, # 68 Exhibit 68, # 69 Exhibit 69, # 70 Exhibit 70, # 71 Exhibit 71, # 72 Exhibit 72, # 73 Exhibit 73, # 74 Exhibit 74, # 75 Exhibit 75, # 76 Exhibit 76, # 77 Exhibit 77, # 78 Exhibit 78, # 79 Exhibit 79, # 80 Exhibit 80, # 81 Exhibit 81, # 82 Exhibit 82, # 83 Exhibit 83, # 84 Exhibit 84, # 85 Exhibit 85, # 86 Exhibit 86, # 87 Exhibit 87, # 88 Exhibit 88, # 89 Exhibit 89, # 90 Exhibit 90, # 91 Exhibit 91, # 92 Exhibit 92, # 93 Exhibit 93, # 94 Exhibit 94, # 95 Exhibit 95, # 96 Exhibit 96, # 97 Exhibit 97, # 98 Exhibit 98, # 99 Exhibit 99, # 100 Exhibit 100, # 101 Exhibit 101, # 102 Exhibit 102, # 103 Exhibit 103, # 104 Exhibit 104, # 105 Exhibit 105, # 106 Exhibit 106)(Conroy, Owen)

Exhibit 79

124 STAT. 870

26 USC 162 note.

PUBLIC LAW 111–148—MAR. 23, 2010

remuneration’ means, with respect to any applicable individual for any disqualified taxable year, the aggregate
amount allowable as a deduction under this chapter for
such taxable year (determined without regard to this subsection) for remuneration (as defined in paragraph (4) without regard to subparagraphs (B), (C), and (D) thereof) for
services performed by such individual (whether or not
during the taxable year). Such term shall not include any
deferred deduction remuneration with respect to services
performed during the disqualified taxable year.
‘‘(E) DEFERRED DEDUCTION REMUNERATION.—For purposes of this paragraph, the term ‘deferred deduction remuneration’ means remuneration which would be applicable
individual remuneration for services performed in a disqualified taxable year but for the fact that the deduction
under this chapter (determined without regard to this paragraph) for such remuneration is allowable in a subsequent
taxable year.
‘‘(F) APPLICABLE INDIVIDUAL.—For purposes of this
paragraph, the term ‘applicable individual’ means, with
respect to any covered health insurance provider for any
disqualified taxable year, any individual—
‘‘(i) who is an officer, director, or employee in such
taxable year, or
‘‘(ii) who provides services for or on behalf of such
covered health insurance provider during such taxable
year.
‘‘(G) COORDINATION.—Rules similar to the rules of subparagraphs (F) and (G) of paragraph (4) shall apply for
purposes of this paragraph.
‘‘(H) REGULATORY AUTHORITY.—The Secretary may prescribe such guidance, rules, or regulations as are necessary
to carry out the purposes of this paragraph.’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to taxable years beginning after December 31, 2009,
with respect to services performed after such date.
SEC. 9015. ADDITIONAL HOSPITAL INSURANCE TAX ON HIGH-INCOME
TAXPAYERS.

(a) FICA.—
(1) IN GENERAL.—Section 3101(b) of the Internal Revenue
Code of 1986 is amended—
(A) by striking ‘‘In addition’’ and inserting the following:
‘‘(1) IN GENERAL.—In addition’’,
(B) by striking ‘‘the following percentages of the’’ and
inserting ‘‘1.45 percent of the’’,
(C) by striking ‘‘(as defined in section 3121(b))—’’ and
all that follows and inserting ‘‘(as defined in section
3121(b)).’’, and
(D) by adding at the end the following new paragraph:
‘‘(2) ADDITIONAL TAX.—In addition to the tax imposed by
paragraph (1) and the preceding subsection, there is hereby
imposed on every taxpayer (other than a corporation, estate,
or trust) a tax equal to 0.5 percent of wages which are received
with respect to employment (as defined in section 3121(b))

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26 USC 3101.

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PUBLIC LAW 111–148—MAR. 23, 2010

124 STAT. 871

during any taxable year beginning after December 31, 2012,
and which are in excess of—
‘‘(A) in the case of a joint return, $250,000, and
‘‘(B) in any other case, $200,000.’’.
(2) COLLECTION OF TAX.—Section 3102 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
‘‘(f) SPECIAL RULES FOR ADDITIONAL TAX.—
‘‘(1) IN GENERAL.—In the case of any tax imposed by section
3101(b)(2), subsection (a) shall only apply to the extent to
which the taxpayer receives wages from the employer in excess
of $200,000, and the employer may disregard the amount of
wages received by such taxpayer’s spouse.
‘‘(2) COLLECTION OF AMOUNTS NOT WITHHELD.—To the
extent that the amount of any tax imposed by section 3101(b)(2)
is not collected by the employer, such tax shall be paid by
the employee.
‘‘(3) TAX PAID BY RECIPIENT.—If an employer, in violation
of this chapter, fails to deduct and withhold the tax imposed
by section 3101(b)(2) and thereafter the tax is paid by the
employee, the tax so required to be deducted and withheld
shall not be collected from the employer, but this paragraph
shall in no case relieve the employer from liability for any
penalties or additions to tax otherwise applicable in respect
of such failure to deduct and withhold.’’.
(b) SECA.—
(1) IN GENERAL.—Section 1401(b) of the Internal Revenue
Code of 1986 is amended—
(A) by striking ‘‘In addition’’ and inserting the following:
‘‘(1) IN GENERAL.—In addition’’, and
(B) by adding at the end the following new paragraph:
‘‘(2) ADDITIONAL TAX.—
‘‘(A) IN GENERAL.—In addition to the tax imposed by
paragraph (1) and the preceding subsection, there is hereby
imposed on every taxpayer (other than a corporation,
estate, or trust) for each taxable year beginning after
December 31, 2012, a tax equal to 0.5 percent of the selfemployment income for such taxable year which is in excess
of—
‘‘(i) in the case of a joint return, $250,000, and
‘‘(ii) in any other case, $200,000.
‘‘(B) COORDINATION WITH FICA.—The amounts under
clauses (i) and (ii) of subparagraph (A) shall be reduced
(but not below zero) by the amount of wages taken into
account in determining the tax imposed under section
3121(b)(2) with respect to the taxpayer.’’.
(2) NO DEDUCTION FOR ADDITIONAL TAX.—
(A) IN GENERAL.—Section 164(f) of such Code is
amended by inserting ‘‘(other than the taxes imposed by
section 1401(b)(2))’’ after ‘‘section 1401)’’.
(B) DEDUCTION FOR NET EARNINGS FROM SELF-EMPLOYMENT.—Subparagraph (B) of section 1402(a)(12) is amended
by inserting ‘‘(determined without regard to the rate
imposed under paragraph (2) of section 1401(b))’’ after ‘‘for
such year’’.

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26 USC 3102.

26 USC 1401.

26 USC 1402.

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124 STAT. 872
26 USC 164 note.

PUBLIC LAW 111–148—MAR. 23, 2010

(c) EFFECTIVE DATE.—The amendments made by this section
shall apply with respect to remuneration received, and taxable
years beginning, after December 31, 2012.
SEC. 9016. MODIFICATION OF SECTION 833 TREATMENT OF CERTAIN
HEALTH ORGANIZATIONS.

26 USC 833.

26 USC 853 note.

(a) IN GENERAL.—Subsection (c) of section 833 of the Internal
Revenue Code of 1986 is amended by adding at the end the following
new paragraph:
‘‘(5) NONAPPLICATION OF SECTION IN CASE OF LOW MEDICAL
LOSS RATIO.—Notwithstanding the preceding paragraphs, this
section shall not apply to any organization unless such
organization’s percentage of total premium revenue expended
on reimbursement for clinical services provided to enrollees
under its policies during such taxable year (as reported under
section 2718 of the Public Health Service Act) is not less than
85 percent.’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to taxable years beginning after December 31, 2009.
SEC. 9017. EXCISE TAX ON ELECTIVE COSMETIC MEDICAL PROCEDURES.

(a) IN GENERAL.—Subtitle D of the Internal Revenue Code
of 1986, as amended by this Act, is amended by adding at the
end the following new chapter:
‘‘CHAPTER 49—ELECTIVE COSMETIC MEDICAL
PROCEDURES
‘‘Sec. 5000B. Imposition of tax on elective cosmetic medical procedures.

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26 USC 5000B.

‘‘SEC. 5000B. IMPOSITION OF TAX ON ELECTIVE COSMETIC MEDICAL
PROCEDURES.

‘‘(a) IN GENERAL.—There is hereby imposed on any cosmetic
surgery and medical procedure a tax equal to 5 percent of the
amount paid for such procedure (determined without regard to
this section), whether paid by insurance or otherwise.
‘‘(b) COSMETIC SURGERY AND MEDICAL PROCEDURE.—For purposes of this section, the term ‘cosmetic surgery and medical procedure’ means any cosmetic surgery (as defined in section 213(d)(9)(B))
or other similar procedure which—
‘‘(1) is performed by a licensed medical professional, and
‘‘(2) is not necessary to ameliorate a deformity arising
from, or directly related to, a congenital abnormality, a personal
injury resulting from an accident or trauma, or disfiguring
disease.
‘‘(c) PAYMENT OF TAX.—
‘‘(1) IN GENERAL.—The tax imposed by this section shall
be paid by the individual on whom the procedure is performed.
‘‘(2) COLLECTION.—Every person receiving a payment for
procedures on which a tax is imposed under subsection (a)
shall collect the amount of the tax from the individual on
whom the procedure is performed and remit such tax quarterly
to the Secretary at such time and in such manner as provided
by the Secretary.
‘‘(3) SECONDARY LIABILITY.—Where any tax imposed by subsection (a) is not paid at the time payments for cosmetic surgery
and medical procedures are made, then to the extent that

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