[House Report 112-708]
[From the U.S. Government Publishing Office]
112th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 112-708
======================================================================
PROVIDING FOR CONSIDERATION OF THE SENATE AMENDMENT TO THE JOINT
RESOLUTION (H.J. RES. 66) APPROVING THE RENEWAL OF IMPORT RESTRICTIONS
CONTAINED IN THE BURMESE FREEDOM AND DEMOCRACY ACT OF 2003, AND
PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 6684) TO PROVIDE FOR
SPENDING REDUCTION
_______
December 19, 2012.--Referred to the House Calendar and ordered to be
printed
_______
Mr. Dreier, from the Committee on Rules,
submitted the following
R E P O R T
[To accompany H. Res. 841]
The Committee on Rules, having had under consideration
House Resolution 841, by a nonrecord vote, report the same to
the House with the recommendation that the resolution be
adopted.
SUMMARY OF PROVISIONS OF THE RESOLUTION
The resolution provides for the consideration of the Senate
amendment to H.J. Res. 66, approving the renewal of import
restrictions contained in the Burmese Freedom and Democracy Act
of 2003. The resolution makes in order a motion offered by the
chair of the Committee on Ways and Means that the House concur
in the Senate amendment to the bill with the amendment printed
in this report. The resolution waives all points of order
against consideration of the motion. The resolution provides
that the Senate amendment and the motion shall be considered as
read. The resolution provides for one hour of debate on the
motion equally divided and controlled by the chair and ranking
minority member of the Committee on Ways and Means.
The resolution also provides for consideration of H.R.
6684, the Spending Reduction Act of 2012, under a closed rule.
The resolution provides one hour of debate equally divided and
controlled by the Majority Leader and Minority Leader or their
respective designees. The resolution waives all points of order
against consideration of the bill. The resolution provides that
the bill shall be considered as read. The resolution waives all
points of order against provisions in the bill. Finally, the
resolution provides one motion to recommit.
EXPLANATION OF WAIVERS
The waiver of all points of order against consideration of
the motion and the Senate amendment to H.J. Res. 66 includes
the following waivers:
Clause 7 of rule XVI, requiring that no
motion or proposition on a subject different from that
under consideration shall be admitted under color of
amendment;
Section 306 of the Congressional Budget Act,
prohibiting consideration of legislation within the
jurisdiction of the Committee on the Budget unless
reported by the Budget Committee; and
Section 311(a) of the Congressional Budget
Act, prohibiting consideration of legislation that
would cause the level of total new budget authority for
the first fiscal year to be exceeded, or would cause
revenues to be less than the level of total revenues
for the first fiscal year or for the total of that
first fiscal year and the ensuing fiscal years for
which allocations are provided, except when a
declaration of war by the Congress is in effect.
The waiver of all points of order against consideration of
H.R. 6684, may include a waiver of clause 11 of rule XXI,
prohibiting the consideration of a bill or joint resolution
which has not been reported by a committee until the third
calendar day (excluding Saturdays, Sundays, or legal holidays
except when the House is in session on such a day) on which
such measure has been available to Members, Delegates, and the
Resident Commissioner. If the bill is considered before Friday,
December 21, 2012, then the waiver of clause 11 of rule XXI
would be applicable.
The waiver of all points of order against consideration of
the bill also includes a waiver of clause 9(a)(2) of rule XXI
which prohibits consideration of a bill or joint resolution not
reported by a committee, unless the chair of each committee of
initial referral has caused a list of congressional earmarks,
limited tax benefits, and limited tariff benefits in the bill
or a statement that the proposition contains no congressional
earmarks, limited tax benefits, or limited tariff benefits to
be printed in the Congressional Record prior to its
consideration. The Committee would note that H. Rept. 112-470,
the report to accompany H.R. 5652, a similar bill containing
all provisions included in H.R. 6684 contained the following
earmark statement from the Committee on the Budget: ``In
compliance with clause 9(e), 9(f), and 9(g) of rule XXI, the
Committee finds that the Committee Prints contain no earmarks,
limited tax benefits, or limited tariff benefits.''
Although the resolution waives all points of order against
provisions in H.R. 6684, the Committee is not aware of any
points of order. The waiver is prophylactic in nature.
SUMMARY OF THE HOUSE AMENDMENT TO THE SENATE AMENDMENT TO H.J. RES. 66
SUBSTITUTE AMENDMENT. The amendment would permanently
extend current income tax rates, permanently establish parity
between capital gains and dividends rates for individuals,
families, and small businesses with incomes up to $1 million.
The amendment also makes permanent the Marriage Penalty Relief,
the Child Tax Credit, repeal of the Personal Exemption Phase-
out (PEP) and Pease limitation, Estate Tax Relief, and
Education-related and other tax benefits. The amendment also
makes permanent higher Section 179 Small Business Expensing and
the Alternative Minimum Tax (AMT) Patch.
TEXT OF THE HOUSE AMENDMENT TO THE SENATE AMENDMENT TO H.J. RES 66
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:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Permanent Tax Relief for
Families and Small Businesses Act of 2012''.
SEC. 2. PREVENTION OF INDIVIDUAL INCOME TAX RATE INCREASES.
(a) In General.--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) 10-percent rate bracket.--
``(A) In general.--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) Initial bracket amount.--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 rates.--
In 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) 35-percent rate bracket.--
``(A) In general.--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) Applicable amount.--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) Inflation adjustment.--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) Adjustment of tables.--The Secretary shall
adjust the tables prescribed under subsection (f) to
carry out this subsection.''.
(b) Treatment of Change in Rates.--Section 15 of such Code is
amended by adding at the end the following new subsection:
``(g) Rate Reductions After 2012.--This section shall not
apply to any change in rates under section 1(j).''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31, 2012.
SEC. 3. PREVENTION OF INCREASES IN CAPITAL GAINS AND DIVIDENDS RATES.
(a) In General.--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) Minimum Tax.--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) Conforming Amendments.--
(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 Sunset.--Section 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) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall
apply to taxable years beginning after December 31,
2012.
(2) Withholding.--The amendment made by subsection
(c)(2) shall apply to amounts paid on or after January
1, 2013.
SEC. 4. REPEAL OF SUNSET WITH RESPECT TO OTHER 2001 AND 2003 TAX
RELIEF.
(a) 2001 Tax Relief.--
(1) In general.--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) Conforming amendment.--The Tax Relief,
Unemployment Insurance Reauthorization, and Job
Creation Act of 2010 is amended by striking section
304.
(3) Effective dates.--
(A) In general.--Paragraph (1) shall apply as
if included in the enactment of the Economic
Growth and Tax Relief Reconciliation Act of
2001.
(B) Conforming amendment.--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) 2003 Tax Relief.--
(1) In general.--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) Effective date.--Paragraph (1) shall apply as if
included in the enactment of the Jobs and Growth Tax
Relief Reconciliation Act of 2003.
SEC. 5. PERMANENT INCREASE IN EXPENSING OF CERTAIN DEPRECIABLE BUSINESS
ASSETS.
(a) In General.--
(1) Dollar limitation.--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) Reduction in limitation.--Section 179(b)(2) of
such Code is amended by striking ``exceeds--'' and all
that follows and inserting ``exceeds $800,000.''.
(b) Computer Software.--Section 179(d)(1)(A)(ii) of such Code
is amended by striking ``and before 2013''.
(c) Election.--Section 179(c)(2) of such Code is amended by
striking ``may not be revoked'' and all that follows through
``and before 2013''.
(d) Inflation Adjustment.--Section 179(b)(6)(A) of such Code
is amended to read as follows:
``(A) In general.--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) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31, 2012.
SEC. 6. PERMANENT ALTERNATIVE MINIMUM TAX RELIEF FOR INDIVIDUALS.
(a) Extension of Increased Alternative Minimum Tax Exemption
Amount.--
(1) In general.--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 amounts.--Section 55(d) of
such Code is amended by adding at the end the following
new paragraph:
``(4) Indexing of dollar amounts.--
``(A) In general.--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) Rounding.--Any increase determined
under subparagraph (A) shall be rounded to the
nearest multiple of $50.''.
(3) Conforming amendments.--
(A) Section 55(b)(1)(A)(iii) of such Code is
amended to read as follows:
``(iii) Married individual filing
separate return.--In 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
Credits.--Section 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 thereafter.--For
purposes of any taxable year beginning after December
31, 1999,''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31, 2011.
SEC. 7. 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.