Mental Health Act

Mental Health Act - Title I: Mental Health Benefits - Provides that every individual who is a resident of the United States, or who is a nonresident citizen of the United States, shall be eligible to receive the benefits provided by this title.

Lists the mental health services covered by this Act and provides that benefits under this Act shall consist of entitlement to have payment made on his behalf, without limit as to duration except as otherwise specifically indicated.

Sets forth qualifications of psychiatric hospitals for participation in the program under this title, including that it provide active diagnostic, therapeutic, and rehabilitative services with respect to mental illness, and that it is accredited by the Joint Commission on the Accreditation of Hospitals.

Requires the Secretary of Health, Education, and Welfare to periodically determine the amount which should be paid under this title to each provider of care and services with respect to the care and services furnished by it.

Provides that no payments may be made under title XVIII (Medicare) of the Social Security Act, under any State plan approved under title XIX (Medicaid) of such Act, or under any other Federal law or program, with respect to any care or services for which payment is made under this title.

Provides that the program under this title shall be administered by the Secretary with the advice and assistance of a Committee on Mental Health which shall be appointed by the Secretary. Provides that the Committee shall be specifically responsible under the direction of the Secretary for the approval of all providers of care and services for participation in the program under this title and for the establishment of the guidelines and qualifications to be applied to any of such providers not affiliated with any specific psychiatric hospital.

Directs the Secretary to conduct a full and complete study of the costs of providing mental health insurance under various conditions and with varying specifications, in order to determine the feasibility of establishing a national program providing such insurance, or expanding the program under this title. Requires the Secretary to submit to the President and the Congress a report on the results of such study together with his recommendations.

Creates a Federal Mental Health Trust Fund in the Treasury of the United States, and creates a Board of Trustees to govern the operation of the fund.

Authorizes appropriations to the trust fund for fiscal year 1975, and for each fiscal year thereafter, in an amount equal to 100 percent of the taxes imposed, under the Internal Revenue Code, from the provisions of title II of this Act.

Provides that the trust fund shall be available to the Secretary for the payment of benefits under this title.

Provides that the Secretary shall submit annually to the President and to the Congress a full report on the program under this title, including his recommendations for any improvements or modifications therein.

Title II: Mental Health Taxes - Imposes a mental health tax, under the Internal Revenue Code, on the income of every individual equal to 0.16 percent of so much of the wages received by him in any calendar year with respect to employment as exceeds the sum of $6,500,plus one-half of the amount by which the regular contribution base for such year exceeds $9,000. (Amends 26 U.S.C. 3101)

Imposes on every employer an excise tax, with respect to having individuals in his employ, equal to 0.52 percent of the wages paid by such employer in any calendar year beginning on or after the effective date of the mental health taxes with respect to employment. (Amends 26 U.S.C. 3111)

Imposes for each taxable year on the self-employment income of every individual a tax equal to 0.38 percent of so much of the self-employment income for such taxable year as exceeds the sum of $6,500 plus one-half of the amount by which the regular contribution base for such year exceeds $9,000. (Amends 26 U.S.C. 1401)

Imposes for each taxable year beginning on or after the effective date of the mental health taxes, on the income of every individual residing in the United States whose mental health unearned income for the taxable year is $400 or more, a tax equal to 0.16 percent of the amount of such mental health unearned income for such taxable year. (Amends 26 U.S.C. 1403, 1404)

Makes amendments to the Internal Revenue Code to conform with the above provisions.