,i #aac? ,,congress #a/ ,session ,h4 ,r4 #fii ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,febru>y #ad1 #bjac ,mr4 ,van ,holl5 7= himself1 ,mr4 ,hoy]1 ,mr4 ,george ,mill] ( ,cali=nia1 ,ms4 ,de,lauro1 ,mr4 ,pocan1 ,ms4 ,ca/or ( ,florida1 ,mr4 ,moran1 ,mr4 ,kildee1 ,mr4 ,huffman1 & ,mr4 ,holt7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means1 & 9 addition to ! ,committees on ! ,budget & ,agriculture1 = a p]iod to be subsequ5tly det]m9$ by ! ,speak]1 9 ea* case = consid]ation ( su* provisions z fall )9 ! jurisdiction ( ! committee conc]n$ ,a ,,bill ,to am5d ! ,balanc$ ,budget & ,em]g5cy ,deficit ,control ,act ( #aihe to repeal & replace ! fiscal ye> #bjac seque/ration4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,/op ! ,seque/] ,job ,loss ,n[ ,act4 #b4 ,table ( cont5ts ,sec4 #a4 ,%ort title4 ,sec4 #b4 ,table ( cont5ts4 ,title ,i--,,budget ,,process ,,am5dm5ts ,,to ,,replace ,,fiscal ,,ye> #bjac ,,seque/ration ,sec4 #aja4 ,repeal & replace ! #bjac seque/]4 ,sec4 #ajb4 ,protect+ vet]ans programs f seque/]4 ,title ,,ii--,,agricultural ,,sav+s ,sec4 #bja4 ,"o-ye> ext5sion ( agricultural commodity programs1 except direct paym5t programs4 ,title ,,iii--,,oil ,,& ,,gas ,,subsidies ,sec4 #cja4 ,limitation on section #aii d$uction attributable to oil1 natural gas1 or prim>y products !re(4 ,sec4 #cjb4 ,prohibition on us+ la/-91 fir/-out acc\nt+ = major integrat$ oil companies4 ,sec4 #cjc4 ,modifications ( =eign tax cr$it rules applicable to major integrat$ oil companies :i* are dual capacity taxpay]s4 ,title ,,iv--,,! ,,buffett ,,rule ,sec4 #dja4 ,fair %>e tax on high-income taxpay]s4 ,title ,v--,,s5se ,,( ,,! ,,h\se ,sec4 #eja4 ,s5se ( ! ,h\se on ! ne$ = a fair1 balanc$ & bip>tisan approa* to long-t]m deficit r$uction4 ,i ,,budget ,,process ,,am5dm5ts ,,to ,,replace ,,fiscal ,,ye> #bjac ,,seque/ration #aja4 ,repeal ! #bjac seque/] & delay ! #bjad seque/] 7a7 ,calculation ( total deficit r$uction & allocation to functions 7#a7 ,subp>agraph 7,e7 ( section #bea;,a7#c7 is am5d$ to read z foll[s3 7,e7 ,= fiscal ye> #bjad1 r$uc+ ! am\nt calculat$ "u subp>agraphs 7,a7 ?r\gh 7,d7 by #bg1ejj1jjj1jjj4 4 7#b7 ,p>agraph 7#d7 ( section #bea;,a ( ! ,balanc$ ,budget & ,em]g5cy ,deficit ,control ,act ( #aihe 7#b ,u4,s4,c4 #ija;a7 is am5d$ by /rik+ ,on ,m>* #a1 #bjac1 = fiscal ye> #bjac1 & 9 its seque/ration preview report = fiscal ye>s #bjad ?r\gh #bjba & ins]t+ ,on ,janu>y #b1 #bjad1 = fiscal ye> #bjad1 & 9 its seque/ration preview report = fiscal ye>s #bjae ?r\gh #bjba4 7b7 ,def5se & nondef5se function r$uctions ,p>agraphs 7#e7 & 7#f7 ( section #bea;,a ( ! ,balanc$ ,budget & ,em]g5cy ,deficit ,control ,act ( #aihe are am5d$ by /rik+ #bjac & ins]t+ #bjad ea* place x appe>s4 7c7 ,implem5t+ discretion>y r$uctions 7#a7 ,section #bea;,a7#g77;,a7 ( ! ,balanc$ ,budget & ,em]g5cy ,deficit ,control ,act ( #aihe is am5d$ by /rik+ #bjac4--,on ,janu>y #b1 #bjac1 = fiscal ye> #bjac & ins]t+ #bjad4--,on ,janu>y #b1 #bjad1 = fiscal ye> #bjad4 7#b7 ,section #bea;,a7#g77;,b7 ( su* ,act is am5d$ by /rik+ #bjad & ins]t+ #bjae ea* place x appe>s4 7d7 ,sav+s ,! sav+s set =? by ! enactm5t ( title ,,ii %all a*ieve ! sav+s t w\ld o!rwise h occurr$ z a result ( ! seque/ration "u section #bea;,a ( ! ,balanc$ ,budget & ,em]g5cy ,deficit ,control ,act ( #aihe4 #ajb4 ,protect+ vet]ans programs f seque/] ,section #bef7;e77#b77;,e7 ( ! ,balanc$ ,budget & ,em]g5cy ,deficit ,control ,act ( #aihe is repeal$4 ,,ii ,,agricultural ,,sav+s #bja4 ,"o-ye> ext5sion ( agricultural commodity programs1 except direct paym5t programs 7a7 ,ext5sion ,except z provid$ 9 subsection 7b7 & not)/&+ any o!r provision ( law1 ! au?orities provid$ by ea* provision ( title ,i ( ! ,food1 ,cons]vation1 & ,en]gy ,act ( #bjjh 7,public ,law #aaj-bdf2 #abb ,/at4 #afea7 & ea* am5dm5t made by t title 7& = m&atory programs at su* fund+ levels71 z 9 effect on ,septemb] #cj1 #bjac1 %all cont9ue1 & ! ,secret>y ( ,agriculture %all c>ry out ! au?orities1 until ,septemb] #cj1 #bjad4 7b7 ,t]m9ation ( direct paym5t programs 7#a7 ,cov]$ commodities ,! ext5sion provid$ by subsection 7a7 %all n apply ) respect to ! direct paym5t program "u section #aajc ( ! ,food1 ,cons]vation1 & ,en]gy ,act ( #bjjh 7#g ,u4,s4,c4 #hgac74 7#b7 ,peanuts ,! ext5sion provid$ by subsection 7a7 %all n apply ) respect to ! direct paym5t program "u section #acjc ( ! ,food1 ,cons]vation1 & ,en]gy ,act ( #bjjh 7#g ,u4,s4,c4 #giec74 7c7 ,effective date ,?is section %all take effect on ! e>li] (-- 7#a7 ! date ( ! enactm5t ( ?is ,act2 & 7#b7 ,septemb] #cj1 #bjac4 ,,iii ,,oil ,,& ,,gas ,,subsidies #cja4 ,limitation on section #aii d$uction attributable to oil1 natural gas1 or prim>y products !re( 7a7 ,d5ial ( d$uction ,p>agraph 7#d7 ( section #aii7;c7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,e7 ,special rule = c]ta9 oil & gas income ,9 ! case ( any taxpay] :o is a major integrat$ oil company 7z def9$ 9 section #afg7;h77#e77;,b77 = ! taxable ye>1 ! t]m dome/ic production gross receipts %all n include gross receipts f ! production1 transportation1 or di/ribution ( oil1 natural gas1 or any prim>y product 7)9 ! mean+ ( subsection 7d77#i77 !re(4 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s end+ aft] ,decemb] #ca1 #bjac4 #cjb4 ,prohibition on us+ la/-91 fir/-out acc\nt+ = major integrat$ oil companies 7a7 ,9 g5]al ,section #dgb ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7h7 ,major integrat$ oil companies ,not)/&+ any o!r provision ( ?is section1 a major integrat$ oil company 7z def9$ 9 section #afg7;h77#e77;,b77 may n use ! me?od provid$ 9 subsection 7b7 9 inv5tory+ ( any goods4 4 7b7 ,effective date & special rule 7#a7 ,9 g5]al ,! am5dm5t made by subsection 7a7 %all apply to taxable ye>s end+ aft] ,decemb] #ca1 #bjac4 7#b7 ,*ange 9 me?od ( acc\nt+ ,9 ! case ( any taxpay] requir$ by ! am5dm5t made by ?is section to *ange its me?od ( acc\nt+ = its fir/ taxable ye> end+ aft] ,decemb] #ca1 #bjac-- 7,a7 su* *ange %all be treat$ z initiat$ by ! taxpay]1 7,b7 su* *ange %all be treat$ z made ) ! cons5t ( ! ,secret>y ( ! ,treasury1 & 7,c7 ! net am\nt ( ! adju/m5ts requir$ to be tak5 into acc\nt by ! taxpay] "u section #dha ( ! ,int]nal ,rev5ue ,code ( #aihf %all be tak5 into acc\nt ratably ov] a p]iod 7n great] ?an #h taxable ye>s7 beg9n+ ) su* fir/ taxable ye>4 #cjc4 ,modifications ( =eign tax cr$it rules applicable to major integrat$ oil companies :i* are dual capacity taxpay]s 7a7 ,9 g5]al ,section #ija ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ subsection 7n7 z subsection 7o7 & by ins]t+ aft] subsection 7m7 ! foll[+ new subsection3 7n7 ,special rules relat+ to major integrat$ oil companies :i* are dual capacity taxpay]s 7#a7 ,g5]al rule ,not)/&+ any o!r provision ( ?is *apt]1 any am\nt paid or accru$ by a dual capacity taxpay] :i* is a major integrat$ oil company 7z def9$ 9 section #afg7;h77#e77;,b77 to a =eign c\ntry or possession ( ! ,unit$ ,/ates = any p]iod %all n be consid]$ a tax-- 7,a7 if1 = su* p]iod1 ! =eign c\ntry or possession does n impose a g5]ally applicable income tax1 or 7,b7 to ! ext5t su* am\nt exce$s ! am\nt 7det]m9$ 9 accordance ) regulations7 :i*-- 7i7 is paid by su* dual capacity taxpay] pursuant to ! g5]ally applicable income tax impos$ by ! c\ntry or possession1 or 7ii7 w\ld be paid if ! g5]ally applicable income tax impos$ by ! c\ntry or possession 7 applicable to su* dual capacity taxpay]4 ,no?+ 9 ?is p>agraph %all be con/ru$ to imply ! prop] treatm5t ( any su* am\nt n 9 excess ( ! am\nt det]m9$ "u subp>agraph 7,b74 7#b7 ,dual capacity taxpay] ,= purposes ( ?is subsection1 ! t]m dual capacity taxpay] means1 ) respect to any =eign c\ntry or possession ( ! ,unit$ ,/ates1 a p]son :o-- 7,a7 is subject to a levy ( su* c\ntry or possession1 & 7,b7 receives 7or w receive7 directly or indirectly a specific economic b5efit 7z det]m9$ 9 accordance ) regulations7 f su* c\ntry or possession4 7#c7 ,g5]ally applicable income tax ,= purposes ( ?is subsection-- 7,a7 ,9 g5]al ,! t]m g5]ally applicable income tax means an income tax 7or a s]ies ( income taxes7 :i* is g5]ally impos$ "u ! laws ( a =eign c\ntry or possession on income d]iv$ f ! conduct ( a trade or bus9ess )9 su* c\ntry or possession4 7,b7 ,exceptions ,su* t]m %all n include a tax unless x has sub/antial application1 by its t]ms & 9 practice1 to-- 7i7 p]sons :o are n dual capacity taxpay]s1 & 7ii7 p]sons :o are citiz5s or resid5ts ( ! =eign c\ntry or possession4 4 7b7 ,effective date 7#a7 ,9 g5]al ,! am5dm5ts made by ?is section %all apply to taxes paid or accru$ 9 taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 7#b7 ,contr>y treaty obligations upheld ,! am5dm5ts made by ?is section %all n apply to ! ext5t contr>y to any treaty obligation ( ! ,unit$ ,/ates4 ,,iv ,,! ,,buffett ,,rule #dja4 ,fair %>e tax on high-income taxpay]s 7a7 ,9 g5]al ,sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new "p3 ,,vii ,,fair ,,%>e ,,tax ,,on ,,high-,,income ,,taxpay]s #ei;,b4 ,fair %>e tax 7a7 ,g5]al rule 7#a7 ,phase-9 ( tax ,9 ! case ( any high-income taxpay]1 !re is h]eby impos$ = a taxable ye> 79 addition to any o!r tax impos$ by ?is subtitle7 a tax equal to ! product (-- 7,a7 ! am\nt det]m9$ "u p>agraph 7#b71 & 7,b7 a fraction 7n to exce$ #a7-- 7i7 ! num]ator ( :i* is ! excess (-- 7,i7 ! taxpay]'s adju/$ gross income1 ov] 7,,ii7 ! doll> am\nt 9 effect "u subsection 7c77#a71 & 7ii7 ! d5om9ator ( :i* is ! doll> am\nt 9 effect "u subsection 7c77#a74 7#b7 ,am\nt ( tax ,! am\nt ( tax det]m9$ "u ?is p>agraph is an am\nt equal to ! excess 7if any7 (-- 7,a7 ! t5tative fair %>e tax = ! taxable ye>1 ov] 7,b7 ! excess (-- 7i7 ! sum (-- 7,i7 ! regul> tax liability 7z def9$ 9 section #bf7;b77 = ! taxable ye>1 7,,ii7 ! tax impos$ by section #ee = ! taxable ye>1 plus 7,,iii7 ! payroll tax = ! taxable ye>1 ov] 7ii7 ! cr$its all[able "u "p ,,iv ( sub*apt] ,a 7o!r ?an sections #bg7;a71 #ca1 & #cd74 7b7 ,t5tative fair %>e tax ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t5tative fair %>e tax = ! taxable ye> is #cj p]c5t ( ! excess (-- 7,a7 ! adju/$ gross income ( ! taxpay]1 ov] 7,b7 ! modifi$ *>itable contribution d$uction = ! taxable ye>4 7#b7 ,modifi$ *>itable contribution d$uction ,= purposes ( p>agraph 7#a7-- 7,a7 ,9 g5]al ,! modifi$ *>itable contribution d$uction = any taxable ye> is an am\nt equal to ! am\nt :i* be>s ! same ratio to ! d$uction all[able "u section #agj 7section #fdb7;c7 9 ! case ( a tru/ or e/ate7 = su* taxable ye> z-- 7i7 ! am\nt ( itemiz$ d$uctions all[able "u ! regul> tax 7z def9$ 9 section #ee7 = su* taxable ye>1 det]m9$ aft] ! application ( section #fh1 be>s to 7ii7 su* am\nt1 det]m9$ be=e ! application ( section #fh4 7,b7 ,taxpay] mu/ itemize ,9 ! case ( any individual :o does n elect to itemize d$uctions = ! taxable ye>1 ! modifi$ *>itable contribution d$uction %all be z]o4 7c7 ,high-,income taxpay] ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m high-income taxpay] means1 ) respect to any taxable ye>1 any taxpay] 7o!r ?an a corporation7 ) an adju/$ gross income = su* taxable ye> 9 excess ( #a1jjj1jjj 7#ej p]c5t ( su* am\nt 9 ! case ( a m>ri$ individual :o files a sep>ate return74 7#b7 ,inflation adju/m5t 7,a7 ,9 g5]al ,9 ! case ( a taxable ye> beg9n+ aft] #bjad1 ! #a1jjj1jjj am\nt "u p>agraph 7#a7 %all be increas$ by an am\nt equal to-- 7i7 su* doll> am\nt1 multipli$ by 7ii7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 det]m9$ by sub/itut+ cal5d> ye> #bjac = cal5d> ye> #aiib 9 subp>agraph 7,b7 !re(4 7,b7 ,r\nd+ ,if any am\nt z adju/$ "u subp>agraph 7,a7 is n a multiple ( #aj1jjj1 su* am\nt %all be r\nd$ to ! next l[e/ multiple ( #aj1jjj4 7d7 ,payroll tax ,= purposes ( ?is section1 ! payroll tax = any taxable ye> is an am\nt equal to ! excess (-- 7#a7 ! taxes impos$ on ! taxpay] "u sections #adja1 #adaa1 #caja1 #cbja1 & #cbaa7;a7 7to ! ext5t su* taxes are attributable to ! rate ( tax 9 effect "u section #caja7 ) respect to su* taxable ye> or wages or comp5sation receiv$ dur+ ! taxable ye>1 ov] 7#b7 ! d$uction all[able "u section #afd7;f7 = su* taxable ye>4 7e7 ,special rule = e/ates & tru/s ,= purposes ( ?is section1 9 ! case ( an e/ate or tru/1 adju/$ gross income %all be comput$ 9 ! mann] describ$ 9 section #fg7;e74 7f7 ,n treat$ z tax impos$ by ?is *apt] = c]ta9 purposes ,! tax impos$ "u ?is section %all n be treat$ z tax impos$ by ?is *apt] = purposes ( det]m9+ ! am\nt ( any cr$it "u ?is *apt] 7o!r ?an ! cr$it all[$ "u section #bg7;a77 or = purposes ( section #ee4 4 7b7 ,con=m+ am5dm5t ,section #bf7;b77#b7 ( su* ,code is am5d$ by r$esignat+ subp>agraphs 7,c7 ?r\gh 7,x7 z subp>agraphs 7,d7 ?r\gh 7,y71 respectively1 & by ins]t+ aft] subp>agraph 7,b7 ! foll[+ new subp>agraph3 7,c7 section #ei;,b 7relat+ to fair %>e tax71 4 7c7 ,cl]ical am5dm5t ,! table ( p>ts = sub*apt] ,a ( *apt] #a ( su* ,code is am5d$ by add+ at ! end ! foll[+ new item3 ,"p ,,vii--,fair ,%>e ,tax on ,high-,income ,taxpay]s 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 ,v ,,s5se ,,( ,,! ,,h\se #eja4 ,s5se ( ! ,h\se on ! ne$ = a fair1 balanc$ & bip>tisan approa* to long-t]m deficit r$uction 7a7 ,! ,h\se f9ds t-- 7#a7 e bip>tisan commission has recomm5d$--& ! majority ( ,am]icans agree--t we %\ld take a balanc$1 bip>tisan approa* to r$uc+ ! deficit t addresses bo? rev5ue & sp5d+2 & 7#b7 seque/ration is a meat-ax approa* to deficit r$uction t imposes deep & m9dless cuts1 reg>dless ( _! impact on vital s]vices & inve/m5ts4 7b7 ,x is ! s5se ( ! ,h\se t ! ,congress %\ld replace ! entire #aj-ye> seque/] e/abli%$ by ! ,budget ,control ,act ( #bjaa ) a balanc$ approa* t w\ld increase rev5ues )\t increas+ ! tax burd5 on middle-income ,am]icans1 & decrease long-t]m sp5d+ :ile ma9ta9+ ! ,m$ic>e gu>antee1 protect+ ,social ,security & a /rong social safety net1 & mak+ /rategic inve/m5ts 9 education1 sci5ce1 rese>*1 & critical infra/ructure necess>y to compete 9 ! global economy4