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[Discussion Draft]
[Discussion Draft]
112th CONGRESS 2d Session
Amendment to the Senate Amendment to H.J. Res. 66
Offered by M___________
The House concurs in the Senate Amendment to H.J. Res. 66 with the following amendment:
In lieu of the matter proposed to be inserted by the Senate amendment to the text of the resolution, insert the following:
1.This Act may be cited as the Permanent Tax Relief for Families and Small Businesses Act of 2012
.
2.Prevention of individual income tax rate increases
(a)Section 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
(j)Rate reductions after 2012
(1)
(A)In the case of taxable years beginning after December 31, 2012, the rate of tax under subsections (a), (b), (c), and (d) on taxable income not over the initial bracket amount shall be 10 percent.
(B)For purposes of this paragraph, the initial bracket amount is—
(i)$14,000 in the case of subsection (a),
(ii)$10,000 in the case of subsection (b), and
(iii)1/2 the amount applicable under clause (i) (after adjustment, if any, under paragraph (4)) in the case of subsections (c) and (d).
(2)Reductions in 28-, 31-, and 36-percent ratesIn the case of taxable years beginning after December 31, 2012, the tables contained in subsections (a), (b), (c), (d), and (e) shall be applied—
(A)by substituting 25%
for 28%
each place it appears (before the application of subparagraph (B)),
(B)by substituting 28%
for 31%
each place it appears, and
(C)by substituting 33%
for 36%
each place it appears.
(3)
(A)In the case of taxable years beginning after December 31, 2012, the rate of tax under subsections (a), (b), (c), and (d) on a taxpayer’s taxable income in the highest rate bracket shall be 35 percent to the extent such income does not exceed an amount equal to the excess of—
(i)the applicable amount, over
(ii)the dollar amount at which such bracket begins.
(B)For purposes of this paragraph, the term applicable amount
means—
(i)except as provided in clause (ii), $1,000,000, and
(ii)1/2 the amount applicable under clause (i) (after adjustment, if any, under paragraph (4)) in the case of subsection (d).
(4)In prescribing the tables under subsection (f) which apply with respect to taxable years beginning in calendar years after 2012 (2013 in the case of the dollar amount contained in paragraph (3)(B)(i))—
(A)with respect to each of the dollar amounts contained in clauses (i) and (ii) of paragraph (1)(B), the cost-of-living adjustment shall be determined under subsection (f)(3) by substituting 2002
for 1992
in subparagraph (B) thereof, and
(B)with respect to the dollar amount contained in paragraph (3)(B)(i), the cost-of-living adjustment shall be determined under subsection (f)(3) by substituting 2012
for 1992
in subparagraph (B) thereof.If any amount after adjustment under the preceding sentence is not a multiple of $50, such amount shall be rounded to the next lowest multiple of $50.
(5)The Secretary shall adjust the tables prescribed under subsection (f) to carry out this subsection..
(b)Treatment of change in ratesSection 15 of such Code is amended by adding at the end the following new subsection:
(g)Rate reductions after 2012This section shall not apply to any change in rates under section 1(j)..
(c)The amendments made by this section shall apply to taxable years beginning after December 31, 2012.
3.Prevention of increases in capital gains and dividends rates
(a)Paragraph (1) of section 1(h) of the Internal Revenue Code of 1986 is amended—
(1)by redesignating subparagraphs (C), (D), and (E) as subparagraphs (D), (E), and (F), respectively,
(2)by inserting after subparagraph (B) the following new subparagraph:
(C)15 percent of the lesser of—
(i)so much of the adjusted net capital gain (or, if less, taxable income) as exceeds the amount on which a tax is determined under subparagraph (B), or
(ii)the excess (if any) of—
(I)the amount of taxable income which would (without regard to this paragraph) be taxed at a rate below 36 percent, over
(II)the sum of the amounts on which a tax is determined under subparagraphs (A) and (B),, and
(3)in subparagraph (D) (as redesignated by paragraph (1)), by striking of the adjusted net capital gain
and all that follows through the end of such subparagraph and inserting (as applied pursuant to section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003) of the adjusted net capital gain (or, if less, taxable income) in excess of the sum of the amounts on which tax is determined under subparagraphs (B) and (C),
.
(b)Paragraph (3) of section 55(b) of such Code is amended—
(1)by redesignating subparagraphs (C) and (D) as subparagraph (D) and (E), respectively,
(2)by inserting after subparagraph (B) the following new subparagraph:
(C)15 percent of the lesser of—
(i)so much of the adjusted net capital gain (or, if less, taxable excess) as exceeds the amount on which tax is determined under subparagraph (B), or
(ii)the excess described in section 1(h)(1)(C)(ii), plus, and
(3)in subparagraph (D) (as redesignated by paragraph (1)), by striking of the adjusted net capital gain
and all that follows through the end of such subparagraph and inserting (as applied pursuant to section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003) of the adjusted net capital gain (or, if less, taxable excess) in excess of the sum of the amounts on which tax is determined under subparagraphs (B) and (C), plus
.
(c)
(1)Sections 1(h)(1)(B) and 55(b)(3)(B) of such Code are each amended by striking 5 percent (0 percent in the case of taxable years beginning after 2007)
and inserting 0 percent
.
(2)Section 1445(e)(1) of such Code is amended by striking percent)
and inserting percent (as applied pursuant to section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003))
.
(3)Section 7518(g)(6)(A) of such Code is amended by striking percent (
in the second sentence and inserting percent, as applied pursuant to section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (
.
(4)Section 53511(f)(2) of title 46, United States Code, is amended by striking percent (
and inserting percent, as applied pursuant to section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (
.
(d)Coordination with JGTRRA sunsetSection 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003 shall apply with respect to the amendment made by section 301(a)(2)(A) of such Act before the redesignation of section 1(h)(1)(C) of the Internal Revenue Code of 1986 under subsection (a)(1).
(e)
(1)Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2012.
(2)The amendment made by subsection (c)(2) shall apply to amounts paid on or after January 1, 2013.
4.Repeal of sunset with respect to other 2001 and 2003 tax relief
(a)
(1)Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 shall not apply with respect to the following provisions of (and amendments made by) such Act:
(A)Subsections (b), (c), and (d) of section 101.
(B)Section 102.
(C)Section 103.
(D)Title II.
(E)Title III.
(F)Title IV.
(G)Title V.
(H)Subtitle G of title VI.
(I)Title VIII.
(2)The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 is amended by striking section 304.
(3)
(A)Paragraph (1) shall apply as if included in the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001.
(B)The amendment made by paragraph (2) shall take effect as if included in the enactment of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
(b)
(1)Section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003 shall not apply with respect to the following provisions of (and amendments made by) such Act:
(A)Paragraph (1) of section 301(a).
(B)Subsections (b), (c), and (d) of section 301.
(C)Section 302.
(2)Paragraph (1) shall apply as if included in the enactment of the Jobs and Growth Tax Relief Reconciliation Act of 2003.
5.Permanent increase in expensing of certain depreciable business assets
(a)
(1)Section 179(b)(1) of the Internal Revenue Code of 1986 is amended by striking shall not exceed—
and all that follows and inserting shall not exceed $250,000.
.
(2)Section 179(b)(2) of such Code is amended by striking exceeds—
and all that follows and inserting exceeds $800,000.
.
(b)Section 179(d)(1)(A)(ii) of such Code is amended by striking and before 2013
.
(c)Section 179(c)(2) of such Code is amended by striking may not be revoked
and all that follows through and before 2013
.
(d)Section 179(b)(6)(A) of such Code is amended to read as follows:
(A)In the case of any taxable year beginning after 2013, the dollar amounts in paragraphs (1) and (2) shall each be increased by an amount equal to—
(i)such dollar amount, multiplied by
(ii)the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting 2012
for 1992
in subparagraph (B) thereof. .
(e)The amendments made by this section shall apply to taxable years beginning after December 31, 2012.
6.Permanent alternative minimum tax relief for individuals
(a)Extension of increased alternative minimum tax exemption amount
(1)Section 55(d)(1) of the Internal Revenue Code of 1986 is amended—
(A)by striking $45,000
and all that follows through 2011)
in subparagraph (A) and inserting $78,750
, and
(B)by striking $33,750
and all that follows through 2011)
in subparagraph (B) and inserting $50,600
.
(2)Indexing of dollar amountsSection 55(d) of such Code is amended by adding at the end the following new paragraph:
(4)Indexing of dollar amounts
(A)In the case of any taxable year beginning in a calendar year after 2012, each of the dollar amounts contained in subclause (I) and (II) of subsection (b)(1)(A)(i), and paragraphs (1)(A), (1)(B), (3)(A), and (3)(B) of this subsection, shall be increased to the amount equal to such amount as in effect for the calendar year preceding such year, increased by an amount equal to the product of—
(i)such amount as so in effect, multiplied by
(ii)the cost-of-living adjustment determined under section 1(f)(3) for such year (determined by substituting the calendar year which is 2 years before such year for 1992
in subparagraph (B) thereof), increased by 0.75 percentage points.
(B)Any increase determined under subparagraph (A) shall be rounded to the nearest multiple of $50..
(3)
(A)Section 55(b)(1)(A)(iii) of such Code is amended to read as follows:
(iii)Married individual filing separate returnIn the case of a married individual filing a separate return, the dollar amount applicable under subclauses (I) and (II) of clause (i) shall be equal to 1/2 of the dollar amount otherwise in effect under such subclauses. For purposes of the preceding sentence, marital status shall be determined under section 7703..
(B)Section 55(d)(3) of such Code is amended by striking the first sentence and inserting the following:
The exemption amount of any taxpayer shall be reduced (but not below zero) by an amount equal to 25 percent of the amount by which the alternative minimum taxable income of the taxpayer exceeds—
(A)$150,000 in the case of a taxpayer described in paragraph (1)(A),
(B)$112,500 in the case of a taxpayer described in paragraph (1)(B),
(C)1/2 the amount in effect under subparagraph (A) in the case of a taxpayer described in paragraph (1)(C),
(D)$75,000 in the case of a taxpayer described in paragraph (1)(D), and
(E)$150,000 in the case of a taxpayer described in paragraph (2)..
(b)Alternative minimum tax relief for nonrefundable creditsSection 26(a)(2) of such Code is amended by striking all that precedes the aggregate amount
and inserting the following:
(2)Special rule for 2000 and thereafterFor purposes of any taxable year beginning after December 31, 1999,.
(c)The amendments made by this section shall apply to taxable years beginning after December 31, 2011.
7.Treatment for PAYGO purposesThe budgetary effects of this Act shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010.