Middle Class Tax Cut Act - Extends through 2013 for a taxpayer whose income is $200,000 or less ($250,000 for married couples filing a joint return): (1) the tax rate reductions and other tax benefits of the Economic Growth and Tax Relief Reconciliation Act of 2001, and (2) the reduction in the tax rate for dividend and capital gain income enacted by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Increases income tax rates and phases-out personal exemptions and itemized deductions for certain high-income taxpayers.
Amends the Internal Revenue Code to extend through 2013: (1) the increased American Opportunity tax credit, (2) the increase in the refundable portion of the child tax credit, (3) the increased earned income tax credit percentage for three or more qualifying children, (4) the disregard of tax refunds in determining eligibility for federal and federally-assisted programs, and (5) the election to expense depreciable business assets.
Extends for one year: (1) the increased exemption amount for the alternative minimum tax (AMT), and (2) the offset against the AMT of certain nonrefundable personal tax credits.
Provides that the budgetary effects of this Act shall not be taken into account under the Statutory Pay-As-You-Go Act of 2010.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 15 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 15
To amend the Internal Revenue Code of 1986 to provide tax relief to
middle-class families.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 30, 2012
Mr. Levin (for himself, Ms. Pelosi, Mr. Hoyer, Mr. Clyburn, Mr. Rangel,
Mr. McDermott, Mr. Lewis of Georgia, Mr. Neal, Mr. Larson of
Connecticut, Mr. Blumenauer, Mr. Pascrell, Mr. Crowley, Mr. Van Hollen,
Mr. Dicks, Ms. Chu, Mr. Honda, Mr. Tonko, Ms. Hahn, Mr. George Miller
of California, Mr. Welch, Mr. Richmond, Mr. Cicilline, Ms. Schakowsky,
Ms. Eddie Bernice Johnson of Texas, Mr. Serrano, Mrs. Capps, and Ms.
Pingree of Maine) introduced the following bill; which was referred to
the Committee on Ways and Means, and in addition to the Committee on
the Budget, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide tax relief to
middle-class families.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) Short Title.--This Act may be cited as the ``Middle Class Tax
Cut Act''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
(c) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; etc.
TITLE I--TEMPORARY EXTENSION OF TAX RELIEF
Sec. 101. Temporary extension of 2001 tax relief.
Sec. 102. Temporary extension of 2003 tax relief.
Sec. 103. Temporary extension of 2010 tax relief.
Sec. 104. Temporary extension of election to expense certain
depreciable business assets.
TITLE II--ALTERNATIVE MINIMUM TAX RELIEF
Sec. 201. Temporary extension of increased alternative minimum tax
exemption amount.
Sec. 202. Temporary extension of alternative minimum tax relief for
nonrefundable personal credits.
TITLE III--TREATMENT FOR PAYGO PURPOSES
Sec. 301. Treatment for PAYGO purposes.
TITLE I--TEMPORARY EXTENSION OF TAX RELIEF
SEC. 101. TEMPORARY EXTENSION OF 2001 TAX RELIEF.
(a) Temporary Extension.--
(1) In general.--Section 901(a)(1) of the Economic Growth
and Tax Relief Reconciliation Act of 2001 is amended by
striking ``December 31, 2012'' and inserting ``December 31,
2013''.
(2) Effective date.--The amendment made by this subsection
shall take effect as if included in the enactment of the
Economic Growth and Tax Relief Reconciliation Act of 2001.
(b) Application to Certain High-Income Taxpayers.--
(1) Income tax rates.--
(A) Treatment of 25- and 28-percent rate
brackets.--Paragraph (2) of section 1(i) is amended to
read as follows:
``(2) 25- and 28-percent rate brackets.--The tables under
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)),
and
``(B) by substituting `28%' for `31%' each place it
appears.''.
(B) 33-percent rate bracket.--Subsection (i) of
section 1 is amended by redesignating paragraph (3) as
paragraph (4) and by inserting after paragraph (2) the
following new paragraph:
``(3) 33-percent rate bracket.--
``(A) In general.--In the case of taxable years
beginning after December 31, 2012--
``(i) the rate of tax under subsections
(a), (b), (c), and (d) on a taxpayer's taxable
income in the fourth rate bracket shall be 33
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, and
``(ii) the 36 percent rate of tax under
such subsections shall apply only to the
taxpayer's taxable income in such bracket in
excess of the amount to which clause (i)
applies.
``(B) Applicable amount.--For purposes of this
paragraph, the term `applicable amount' means the
excess of--
``(i) the applicable threshold, over
``(ii) the sum of the following amounts in
effect for the taxable year:
``(I) the basic standard deduction
(within the meaning of section
63(c)(2)), and
``(II) the exemption amount (within
the meaning of section 151(d)(1)) (or,
in the case of subsection (a), 2 such
exemption amounts).
``(C) Applicable threshold.--For purposes of this
paragraph, the term `applicable threshold' means--
``(i) $250,000 in the case of subsection
(a),
``(ii) $225,000 in the case of subsection
(b),
``(iii) $200,000 in the case of subsections
(c), and
``(iv) \1/2\ the amount applicable under
clause (i) (after adjustment, if any, under
subparagraph (E)) in the case of subsection
(d).
``(D) Fourth rate bracket.--For purposes of this
paragraph, the term `fourth rate bracket' means the
bracket which would (determined without regard to this
paragraph) be the 36-percent rate bracket.
``(E) Inflation adjustment.--For purposes of this
paragraph, with respect to taxable years beginning in
calendar years after 2012, each of the dollar amounts
under clauses (i), (ii), and (iii) of subparagraph (C)
shall be adjusted in the same manner as under paragraph
(1)(C), except that subsection (f)(3)(B) shall be
applied by substituting `2008' for `1992'.''.
(2) Phaseout of personal exemptions and itemized
deductions.--
(A) Overall limitation on itemized deductions.--
Section 68 is amended--
(i) by striking ``the applicable amount''
the first place it appears in subsection (a)
and inserting ``the applicable threshold in
effect under section 1(i)(3)'',
(ii) by striking ``the applicable amount''
in subsection (a)(1) and inserting ``such
applicable threshold'',
(iii) by striking subsection (b) and
redesignating subsections (c), (d), and (e) as
subsections (b), (c), and (d), respectively,
and
(iv) by striking subsections (f) and (g).
(B) Phaseout of deductions for personal
exemptions.--
(i) In general.--Paragraph (3) of section
151(d) is amended--
(I) by striking ``the threshold
amount'' in subparagraphs (A) and (B)
and inserting ``the applicable
threshold in effect under section
1(i)(3)'',
(II) by striking subparagraph (C)
and redesignating subparagraph (D) as
subparagraph (C), and
(III) by striking subparagraphs (E)
and (F).
(ii) Conforming amendments.--Paragraph (4)
of section 151(d) is amended--
(I) by striking subparagraph (B),
(II) by redesignating clauses (i)
and (ii) of subparagraph (A) as
subparagraphs (A) and (B),
respectively, and by indenting such
subparagraphs (as so redesignated)
accordingly, and
(III) by striking all that precedes
``in a calendar year after 1989,'' and
inserting the following:
``(4) Inflation adjustment.--In the case of any taxable
year beginning''.
(c) Effective Date.--Except as otherwise provided, the amendments
made by this section shall apply to taxable years beginning after
December 31, 2012.
(d) Application of EGTRRA Sunset.--Each amendment made by
subsection (b) shall be subject to title IX of the Economic Growth and
Tax Relief Reconciliation Act of 2001 to the same extent and in the
same manner as if such amendment was included in title I of such Act.
SEC. 102. TEMPORARY EXTENSION OF 2003 TAX RELIEF.
(a) Extension.--
(1) In general.--Section 303 of the Jobs and Growth Tax
Relief Reconciliation Act of 2003 is amended by striking
``December 31, 2012'' and inserting ``December 31, 2013''.
(2) Effective date.--The amendment made by this subsection
shall take effect as if included in the enactment of the Jobs
and Growth Tax Relief Reconciliation Act of 2003.
(b) 20-Percent Capital Gains Rate for Certain High Income
Individuals.--
(1) In general.--Paragraph (1) of section 1(h) is amended
by striking subparagraph (C), by redesignating subparagraphs
(D) and (E) as subparagraphs (E) and (F) and by inserting after
subparagraph (B) the following new subparagraphs:
``(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),
``(D) 20 percent 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),''.
(2) Minimum tax.--Paragraph (3) of section 55(b) is amended
by striking subparagraph (C), by redesignating subparagraph (D)
as subparagraph (E), and by inserting after subparagraph (B)
the following new subparagraphs:
``(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
``(D) 20 percent 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) Conforming Amendments.--
(1) The following provisions are each amended by striking
``15 percent'' and inserting ``20 percent'':
(A) Section 531.
(B) Section 541.
(C) Section 1445(e)(1).
(D) The second sentence of section 7518(g)(6)(A).
(E) Section 53511(f)(2) of title 46, United States
Code.
(2) Sections 1(h)(1)(B) and 55(b)(3)(B) are each amended by
striking ``5 percent (0 percent in the case of taxable years
beginning after 2007)'' and inserting ``0 percent''.
(3) Section 1445(e)(6) is amended by striking ``15 percent
(20 percent in the case of taxable years beginning after
December 31, 2010)'' and inserting ``20 percent''.
(d) Effective Dates.--
(1) In general.--Except as otherwise provided, the
amendments made by subsections (b) and (c) shall apply to
taxable years beginning after December 31, 2012.
(2) Withholding.--The amendments made by paragraphs (1)(C)
and (3) of subsection (c) shall apply to amounts paid on or
after January 1, 2013.
(e) Application of JGTRRA Sunset.--Each amendment made by
subsections (b) and (c) shall be subject to section 303 of the Jobs and
Growth Tax Relief Reconciliation Act of 2003 to the same extent and in
the same manner as if such amendment was included in title III of such
Act.
SEC. 103. TEMPORARY EXTENSION OF 2010 TAX RELIEF.
(a) American Opportunity Tax Credit.--
(1) In general.--Section 25A(i) is amended by striking ``or
2012'' and inserting ``2012, or 2013''.
(2) Treatment of possessions.--Section 1004(c)(1) of
division B of the American Recovery and Reinvestment Tax Act of
2009 is amended by striking ``and 2012'' each place it appears
and inserting ``2012, and 2013''.
(b) Child Tax Credit.--Section 24(d)(4) is amended--
(1) by striking ``and 2012'' in the heading and inserting
``2012, and 2013'', and
(2) by striking ``or 2012'' and inserting ``2012, or
2013''.
(c) Earned Income Tax Credit.--Section 32(b)(3) is amended--
(1) by striking ``and 2012'' in the heading and inserting
``2012, and 2013'', and
(2) by striking ``or 2012'' and inserting ``2012, or
2013''.
(d) Temporary Extension of Rule Disregarding Refunds in the
Administration of Federal Programs and Federally Assisted Programs.--
Subsection (b) of section 6409 is amended by striking ``December 31,
2012'' and inserting ``December 31, 2013''.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2012.
(2) Rule disregarding refunds in the administration of
certain programs.--The amendment made by subsection (d) shall
apply to amounts received after December 31, 2012.
SEC. 104. TEMPORARY EXTENSION OF ELECTION TO EXPENSE CERTAIN
DEPRECIABLE BUSINESS ASSETS.
(a) In General.--
(1) Dollar limitation.--Section 179(b)(1) is amended--
(A) by striking ``and'' at the end of subparagraph
(C),
(B) by redesignating subparagraph (D) as
subparagraph (E),
(C) by inserting after subparagraph (C) the
following new subparagraph:
``(D) $250,000 in the case of taxable years
beginning in 2013, and'', and
(D) in subparagraph (E), as so redesignated, by
striking ``2012'' and inserting ``2013''.
(2) Reduction in limitation.--Section 179(b)(2) is
amended--
(A) by striking ``and'' at the end of subparagraph
(C),
(B) by redesignating subparagraph (D) as
subparagraph (E),
(C) by inserting after subparagraph (C) the
following new subparagraph:
``(D) $800,000 in the case of taxable years
beginning in 2013, and'', and
(D) in subparagraph (E), as so redesignated, by
striking ``2012'' and inserting ``2013''.
(b) Computer Software.--Section 179(d)(1)(A)(ii) is amended by
striking ``2013'' and inserting ``2014''.
(c) Election.--Section 179(c)(2) is amended by striking ``2013''
and inserting ``2014''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2012.
TITLE II--ALTERNATIVE MINIMUM TAX RELIEF
SEC. 201. TEMPORARY EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX
EXEMPTION AMOUNT.
(a) In General.--Paragraph (1) of section 55(d) is amended--
(1) by striking ``$72,450'' and all that follows through
``2011'' in subparagraph (A) and inserting ``$78,750 in the
case of taxable years beginning in 2012'', and
(2) by striking ``$47,450'' and all that follows through
``2011'' in subparagraph (B) and inserting ``$50,600 in the
case of taxable years beginning in 2012''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2011.
SEC. 202. TEMPORARY EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR
NONREFUNDABLE PERSONAL CREDITS.
(a) In General.--Paragraph (2) of section 26(a) is amended--
(1) by striking ``or 2011'' and inserting ``2011, or
2012'', and
(2) by striking ``2011'' in the heading thereof and
inserting ``2012''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2011.
TITLE III--TREATMENT FOR PAYGO PURPOSES
SEC. 301. TREATMENT FOR PAYGO PURPOSES.
The 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.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Motion to Discharge Committee filed by Mr. Walz (MN). Petition No: 112-6. (<a href="http://clerk.house.gov/112/lrc/pd/petitions/DisPet0006.xml ">Discharge petition</a> text with signatures.)
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