WASHINGTON—Senate Democratic leaders unveiled a revamped tax bill Tuesday that, like a House-passed measure, omits an extension of federal COBRA premium subsidies for laid-off employees.
In March, the Senate approved a tax bill, H.R. 4213, extending the subsidy to employees laid off through year-end. But the House in May stripped the COBRA subsidy and its projected $8 billion cost from the measure before passing it and sending the bill back to the Senate.
While Senate Democratic leaders had discussed reducing the extension to Nov. 30, the latest Senate version that Finance Committee Chairman Max Baucus, D-Mont., unveiled Tuesday did not mention the subsidy.
While the tax bill could be amended on the Senate floor to include a shorter extension, legislators have grown more leery of approving measures that would boost the federal deficit, and even a short extension would face an uphill battle, observers say.
The Senate measure also, like the House bill, would give employers more time to fund their pension plans.
For assistance with your questions about COBRA and the ARRA Premium Subsidy Expiration, call us at 800-499-3539 or email us at CobraSupport@amben.com