,i #aacth ,,congress #ast ,session ,h4 ,r4 #fii ,,in ,,the ,,house ,,of ,,representatives ,february #ad1 #bjac ,mr4 ,van ,hollen 7for himself1 ,mr4 ,hoyer1 ,mr4 ,george ,miller of ,california1 ,ms4 ,de,lauro1 ,mr4 ,pocan1 ,ms4 ,castor of ,florida1 ,mr4 ,moran1 ,mr4 ,kildee1 ,mr4 ,huffman1 and ,mr4 ,holt7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committees on the ,budget and ,agriculture1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe to repeal and replace the fiscal year #bjac sequestration4 #a4 ,short title ,this ,act may be cited as the ,stop the ,sequester ,job ,loss ,now ,act4 #b4 ,table of contents ,sec4 #a4 ,short title4 ,sec4 #b4 ,table of contents4 ,title ,i--,,budget ,,process ,,amendments ,,to ,,replace ,,fiscal ,,year #bjac ,,sequestration ,sec4 #aja4 ,repeal and replace the #bjac sequester4 ,sec4 #ajb4 ,protecting veterans programs from sequester4 ,title ,,ii--,,agricultural ,,savings ,sec4 #bja4 ,one-year extension of agricultural commodity programs1 except direct payment programs4 ,title ,,iii--,,oil ,,and ,,gas ,,subsidies ,sec4 #cja4 ,limitation on section #aii deduction attributable to oil1 natural gas1 or primary products thereof4 ,sec4 #cjb4 ,prohibition on using last-in1 first-out accounting for major integrated oil companies4 ,sec4 #cjc4 ,modifications of foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers4 ,title ,,iv--,,the ,,buffett ,,rule ,sec4 #dja4 ,fair share tax on high-income taxpayers4 ,title ,v--,,sense ,,of ,,the ,,house ,sec4 #eja4 ,sense of the ,house on the need for a fair1 balanced and bipartisan approach to long-term deficit reduction4 ,i ,,budget ,,process ,,amendments ,,to ,,replace ,,fiscal ,,year #bjac ,,sequestration #aja4 ,repeal the #bjac sequester and delay the #bjad sequester 7a7 ,calculation of total deficit reduction and allocation to functions 7#a7 ,subparagraph 7,e7 of section #bea;,a7#c7 is amended to read as follows3 7,e7 ,for fiscal year #bjad1 reducing the amount calculated under subparagraphs 7,a7 through 7,d7 by #bg1ejj1jjj1jjj4 4 7#b7 ,paragraph 7#d7 of section #bea;,a of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe 7#b ,u4,s4,c4 #ija;a7 is amended by striking ,on ,march #a1 #bjac1 for fiscal year #bjac1 and in its sequestration preview report for fiscal years #bjad through #bjba and inserting ,on ,january #b1 #bjad1 for fiscal year #bjad1 and in its sequestration preview report for fiscal years #bjae through #bjba4 7b7 ,defense and nondefense function reductions ,paragraphs 7#e7 and 7#f7 of section #bea;,a of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe are amended by striking #bjac and inserting #bjad each place it appears4 7c7 ,implementing discretionary reductions 7#a7 ,section #bea;,a7#g77;,a7 of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe is amended by striking #bjac4--,on ,january #b1 #bjac1 for fiscal year #bjac and inserting #bjad4--,on ,january #b1 #bjad1 for fiscal year #bjad4 7#b7 ,section #bea;,a7#g77;,b7 of such ,act is amended by striking #bjad and inserting #bjae each place it appears4 7d7 ,savings ,the savings set forth by the enactment of title ,,ii shall achieve the savings that would otherwise have occurred as a result of the sequestration under section #bea;,a of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe4 #ajb4 ,protecting veterans programs from sequester ,section #bef7;e77#b77;,e7 of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe is repealed4 ,,ii ,,agricultural ,,savings #bja4 ,one-year extension of agricultural commodity programs1 except direct payment programs 7a7 ,extension ,except as provided in subsection 7b7 and notwithstanding any other provision of law1 the authorities provided by each provision of title ,i of the ,food1 ,conservation1 and ,energy ,act of #bjjh 7,public ,law #aaj-bdf2 #abb ,stat4 #afea7 and each amendment made by that title 7and for mandatory programs at such funding levels71 as in effect on ,september #cj1 #bjac1 shall continue1 and the ,secretary of ,agriculture shall carry out the authorities1 until ,september #cj1 #bjad4 7b7 ,termination of direct payment programs 7#a7 ,covered commodities ,the extension provided by subsection 7a7 shall not apply with respect to the direct payment program under section #aajc of the ,food1 ,conservation1 and ,energy ,act of #bjjh 7#g ,u4,s4,c4 #hgac74 7#b7 ,peanuts ,the extension provided by subsection 7a7 shall not apply with respect to the direct payment program under section #acjc of the ,food1 ,conservation1 and ,energy ,act of #bjjh 7#g ,u4,s4,c4 #giec74 7c7 ,effective date ,this section shall take effect on the earlier of-- 7#a7 the date of the enactment of this ,act2 and 7#b7 ,september #cj1 #bjac4 ,,iii ,,oil ,,and ,,gas ,,subsidies #cja4 ,limitation on section #aii deduction attributable to oil1 natural gas1 or primary products thereof 7a7 ,denial of deduction ,paragraph 7#d7 of section #aii7;c7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,e7 ,special rule for certain oil and gas income ,in the case of any taxpayer who is a major integrated oil company 7as defined in section #afg7;h77#e77;,b77 for the taxable year1 the term domestic production gross receipts shall not include gross receipts from the production1 transportation1 or distribution of oil1 natural gas1 or any primary product 7within the meaning of subsection 7d77#i77 thereof4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years ending after ,december #ca1 #bjac4 #cjb4 ,prohibition on using last-in1 first-out accounting for major integrated oil companies 7a7 ,in general ,section #dgb of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7h7 ,major integrated oil companies ,notwithstanding any other provision of this section1 a major integrated oil company 7as defined in section #afg7;h77#e77;,b77 may not use the method provided in subsection 7b7 in inventorying of any goods4 4 7b7 ,effective date and special rule 7#a7 ,in general ,the amendment made by subsection 7a7 shall apply to taxable years ending after ,december #ca1 #bjac4 7#b7 ,change in method of accounting ,in the case of any taxpayer required by the amendment made by this section to change its method of accounting for its first taxable year ending after ,december #ca1 #bjac-- 7,a7 such change shall be treated as initiated by the taxpayer1 7,b7 such change shall be treated as made with the consent of the ,secretary of the ,treasury1 and 7,c7 the net amount of the adjustments required to be taken into account by the taxpayer under section #dha of the ,internal ,revenue ,code of #aihf shall be taken into account ratably over a period 7not greater than #h taxable years7 beginning with such first taxable year4 #cjc4 ,modifications of foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers 7a7 ,in general ,section #ija of the ,internal ,revenue ,code of #aihf is amended by redesignating subsection 7n7 as subsection 7o7 and by inserting after subsection 7m7 the following new subsection3 7n7 ,special rules relating to major integrated oil companies which are dual capacity taxpayers 7#a7 ,general rule ,notwithstanding any other provision of this chapter1 any amount paid or accrued by a dual capacity taxpayer which is a major integrated oil company 7as defined in section #afg7;h77#e77;,b77 to a foreign country or possession of the ,united ,states for any period shall not be considered a tax-- 7,a7 if1 for such period1 the foreign country or possession does not impose a generally applicable income tax1 or 7,b7 to the extent such amount exceeds the amount 7determined in accordance with regulations7 which-- 7i7 is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession1 or 7ii7 would be paid if the generally applicable income tax imposed by the country or possession were applicable to such dual capacity taxpayer4 ,nothing in this paragraph shall be construed to imply the proper treatment of any such amount not in excess of the amount determined under subparagraph 7,b74 7#b7 ,dual capacity taxpayer ,for purposes of this subsection1 the term dual capacity taxpayer means1 with respect to any foreign country or possession of the ,united ,states1 a person who-- 7,a7 is subject to a levy of such country or possession1 and 7,b7 receives 7or will receive7 directly or indirectly a specific economic benefit 7as determined in accordance with regulations7 from such country or possession4 7#c7 ,generally applicable income tax ,for purposes of this subsection-- 7,a7 ,in general ,the term generally applicable income tax means an income tax 7or a series of income taxes7 which is generally imposed under the laws of a foreign country or possession on income derived from the conduct of a trade or business within such country or possession4 7,b7 ,exceptions ,such term shall not include a tax unless it has substantial application1 by its terms and in practice1 to-- 7i7 persons who are not dual capacity taxpayers1 and 7ii7 persons who are citizens or residents of the foreign country or possession4 4 7b7 ,effective date 7#a7 ,in general ,the amendments made by this section shall apply to taxes paid or accrued in taxable years beginning after the date of the enactment of this ,act4 7#b7 ,contrary treaty obligations upheld ,the amendments made by this section shall not apply to the extent contrary to any treaty obligation of the ,united ,states4 ,,iv ,,the ,,buffett ,,rule #dja4 ,fair share tax on high-income taxpayers 7a7 ,in general ,subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new part3 ,,vii ,,fair ,,share ,,tax ,,on ,,high-,,income ,,taxpayers #ei;,b4 ,fair share tax 7a7 ,general rule 7#a7 ,phase-in of tax ,in the case of any high-income taxpayer1 there is hereby imposed for a taxable year 7in addition to any other tax imposed by this subtitle7 a tax equal to the product of-- 7,a7 the amount determined under paragraph 7#b71 and 7,b7 a fraction 7not to exceed #a7-- 7i7 the numerator of which is the excess of-- 7,i7 the taxpayer's adjusted gross income1 over 7,,ii7 the dollar amount in effect under subsection 7c77#a71 and 7ii7 the denominator of which is the dollar amount in effect under subsection 7c77#a74 7#b7 ,amount of tax ,the amount of tax determined under this paragraph is an amount equal to the excess 7if any7 of-- 7,a7 the tentative fair share tax for the taxable year1 over 7,b7 the excess of-- 7i7 the sum of-- 7,i7 the regular tax liability 7as defined in section #bf7;b77 for the taxable year1 7,,ii7 the tax imposed by section #ee for the taxable year1 plus 7,,iii7 the payroll tax for the taxable year1 over 7ii7 the credits allowable under part ,,iv of subchapter ,a 7other than sections #bg7;a71 #ca1 and #cd74 7b7 ,tentative fair share tax ,for purposes of this section-- 7#a7 ,in general ,the tentative fair share tax for the taxable year is #cj percent of the excess of-- 7,a7 the adjusted gross income of the taxpayer1 over 7,b7 the modified charitable contribution deduction for the taxable year4 7#b7 ,modified charitable contribution deduction ,for purposes of paragraph 7#a7-- 7,a7 ,in general ,the modified charitable contribution deduction for any taxable year is an amount equal to the amount which bears the same ratio to the deduction allowable under section #agj 7section #fdb7;c7 in the case of a trust or estate7 for such taxable year as-- 7i7 the amount of itemized deductions allowable under the regular tax 7as defined in section #ee7 for such taxable year1 determined after the application of section #fh1 bears to 7ii7 such amount1 determined before the application of section #fh4 7,b7 ,taxpayer must itemize ,in the case of any individual who does not elect to itemize deductions for the taxable year1 the modified charitable contribution deduction shall be zero4 7c7 ,high-,income taxpayer ,for purposes of this section-- 7#a7 ,in general ,the term high-income taxpayer means1 with respect to any taxable year1 any taxpayer 7other than a corporation7 with an adjusted gross income for such taxable year in excess of #a1jjj1jjj 7#ej percent of such amount in the case of a married individual who files a separate return74 7#b7 ,inflation adjustment 7,a7 ,in general ,in the case of a taxable year beginning after #bjad1 the #a1jjj1jjj amount under paragraph 7#a7 shall be increased by an amount equal to-- 7i7 such dollar amount1 multiplied by 7ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting calendar year #bjac for calendar year #aiib in subparagraph 7,b7 thereof4 7,b7 ,rounding ,if any amount as adjusted under subparagraph 7,a7 is not a multiple of #aj1jjj1 such amount shall be rounded to the next lowest multiple of #aj1jjj4 7d7 ,payroll tax ,for purposes of this section1 the payroll tax for any taxable year is an amount equal to the excess of-- 7#a7 the taxes imposed on the taxpayer under sections #adja1 #adaa1 #caja1 #cbja1 and #cbaa7;a7 7to the extent such taxes are attributable to the rate of tax in effect under section #caja7 with respect to such taxable year or wages or compensation received during the taxable year1 over 7#b7 the deduction allowable under section #afd7;f7 for such taxable year4 7e7 ,special rule for estates and trusts ,for purposes of this section1 in the case of an estate or trust1 adjusted gross income shall be computed in the manner described in section #fg7;e74 7f7 ,not treated as tax imposed by this chapter for certain purposes ,the tax imposed under this section shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter 7other than the credit allowed under section #bg7;a77 or for purposes of section #ee4 4 7b7 ,conforming amendment ,section #bf7;b77#b7 of such ,code is amended by redesignating subparagraphs 7,c7 through 7,x7 as subparagraphs 7,d7 through 7,y71 respectively1 and by inserting after subparagraph 7,b7 the following new subparagraph3 7,c7 section #ei;,b 7relating to fair share tax71 4 7c7 ,clerical amendment ,the table of parts for subchapter ,a of chapter #a of such ,code is amended by adding at the end the following new item3 ,part ,,vii--,fair ,share ,tax on ,high-,income ,taxpayers 4 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjac4 ,v ,,sense ,,of ,,the ,,house #eja4 ,sense of the ,house on the need for a fair1 balanced and bipartisan approach to long-term deficit reduction 7a7 ,the ,house finds that-- 7#a7 every bipartisan commission has recommended--and the majority of ,americans agree--that we should take a balanced1 bipartisan approach to reducing the deficit that addresses both revenue and spending2 and 7#b7 sequestration is a meat-ax approach to deficit reduction that imposes deep and mindless cuts1 regardless of their impact on vital services and investments4 7b7 ,it is the sense of the ,house that the ,congress should replace the entire #aj-year sequester established by the ,budget ,control ,act of #bjaa with a balanced approach that would increase revenues without increasing the tax burden on middle-income ,americans1 and decrease long-term spending while maintaining the ,medicare guarantee1 protecting ,social ,security and a strong social safety net1 and making strategic investments in education1 science1 research1 and critical infrastructure necessary to compete in the global economy4