Senate Votes on Collins’ Amendment for Tax Rate and Rural Hospital Relief

Early Tuesday morning, the Senate cast votes to block an amendment offered by Sen. Susan Collins (R-Maine). This amendment aimed to introduce a new top tax rate for the country’s wealthiest, while also increasing the proposed Rural Hospital Relief Fund from $25 billion to $50 billion.

The vote concluded with a score of 22 to 78, amidst concerns that the amendment would disregard 60 budget points.

Collins’ proposal was part of President Trump’s significant legislative package and sought to establish a 39.6% marginal tax rate for individuals earning over $25 million, and for married couples earning more than $50 million.

The anticipated revenue from this tax rate was expected to fully cover the cost of expanding the relief fund designed to assist rural and small hospitals at risk of bankruptcy, particularly in light of sudden Medicaid cuts stemming from the GOP’s budget plan.

On the Senate floor, Collins expressed the dire situation of rural healthcare providers. “Rural providers, especially our rural hospitals and nursing homes, are currently under heavy financial burdens, with many closing recently and others at risk of closing,” she noted. “When these facilities close their doors, the people they serve are often left without access to healthcare.”

Eighteen Republican senators supported the amendment, including Collins and Jerry Moran (Kansas), Roger Marshall (Kansas), Lisa Markovski (Alaska), Dan Sullivan (Alaska), Shelley Moore Capito (W.VA.), Bill Cassidy (LA.), John Kennedy (LA.), Josh Hawley (Miss.), John Husted (Ohio), Bernie Moreno (Ohio), Mitch McConnell (Kentucky), Roger Wicker (Miss.), Cindy Hyde-Smith (Miss.), and Todd Young (Ind.).

A few members of the Democratic Caucus also voted in favor, notably Senators Angus King (I-Maine), Jon Ossoff (D-Ga.), Mark Warner (D-Va.), and Raphael Warnock (D-Ga.).

Nonetheless, the majority of both Republican and Democratic senators voted against the proposal.

Sen. Ron Wyden (D-ORE), a senior member of the Senate Finance Committee, criticized the amendment as a “Band-Aid with Cutoff.” He remarked, “That provides just a small portion of the nearly $1 trillion cut that the bill will impose on Medicaid. It’s much more logical not to cut $1 trillion from Medicaid in the first place.”