H. Rept. 112-708 - 112th Congress (2011-2012)

Report text available as:

Formatting necessary for an accurate reading of this legislative text may be shown by tags (e.g., <DELETED> or <BOLD>) or may be missing from this TXT display. For complete and accurate display of this text, see the PDF.


House Report 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

[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.