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HR 58 Fair Share Act of 2014
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Topic Started: 12 Jun 2013, 01:02 AM (391 Views)
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Heather Holson
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12 Jun 2013, 01:02 AM
Post #1
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48 hours for debate
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Mrs. KILINGER, for herself, submits
A BILL
to be known as the "Fair Share Act of 2014."
SEC. 1. REFERENCE. Except as otherwise expressly provided, whenever 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.
SEC. 2. FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS. (a) In General- Subchapter A of chapter 1 is amended by adding at the end the following new part:
‘PART VIII--FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS ‘Sec. 59B. Fair share tax.
‘SEC. 59B. FAIR SHARE TAX. ‘(a) General Rule-
‘(1) PHASE-IN OF TAX- In the case of any high-income taxpayer, there is hereby imposed for a taxable year (in addition to any other tax imposed by this subtitle) a tax equal to the product of--
‘(A) the amount determined under paragraph (2), and
‘(B) a fraction (not to exceed 1)--
‘(i) the numerator of which is the excess of--
‘(I) the taxpayer’s adjusted gross income, over
‘(II) the dollar amount in effect under subsection (c)(1), and
‘(ii) the denominator of which is $4,000,000 ($2,000,000 in the case of a married individual who files a separate return).
‘(2) AMOUNT OF TAX- The amount of tax determined under this paragraph is an amount equal to the excess (if any) of--
‘(A) the tentative fair share tax for the taxable year, over
‘(B) the excess of--
‘(i) the sum of--
‘(I) the regular tax liability (as defined in section 26(b)) for the taxable year, determined without regard to any tax liability determined under this section,
‘(II) the tax imposed by section 55 for the taxable year, plus
‘(III) the payroll tax for the taxable year, over
‘(ii) the credits allowable under part IV of subchapter A (other than sections 27(a), 31, and 34).
‘(b) Tentative Fair Share Tax- For purposes of this section--
‘(1) IN GENERAL- The tentative fair share tax for the taxable year is 30 percent of the excess of--
‘(A) the adjusted gross income of the taxpayer, over
‘(B) the modified charitable contribution deduction for the taxable year.
‘(2) MODIFIED CHARITABLE CONTRIBUTION DEDUCTION- For purposes of paragraph (1)--
‘(A) 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 170 (section 642(c) in the case of a trust or estate) for such taxable year as--
‘(i) the amount of itemized deductions allowable under the regular tax (as defined in section 55) for such taxable year, determined after the application of section 68, bears to
‘(ii) such amount, determined before the application of section 68.
‘(B) TAXPAYER MUST ITEMIZE- In the case of any individual who does not elect to itemize deductions for the taxable year, the modified charitable contribution deduction shall be zero.
‘(c) High-Income Taxpayer- For purposes of this section--
‘(1) IN GENERAL- The term ‘high-income taxpayer’ means, with respect to any taxable year, any taxpayer (other than a corporation) with an adjusted gross income for such taxable year in excess of $1,000,000 (50 percent of such amount in the case of a married individual who files a separate return).
‘(2) INFLATION ADJUSTMENT-
‘(A) IN GENERAL- In the case of a taxable year beginning after 2013, the $1,000,000 amount under paragraph (1) shall 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, determined by substituting ‘calendar year 2012’ for ‘calendar year 1992’ in subparagraph (B) thereof.
‘(B) ROUNDING- If any amount as adjusted under subparagraph (A) is not a multiple of $10,000, such amount shall be rounded to the next lowest multiple of $10,000.
‘(d) Payroll Tax- For purposes of this section, the payroll tax for any taxable year is an amount equal to the excess of--
‘(1) the taxes imposed on the taxpayer under sections 1401, 1411, 3101, 3201, and 3211(a) (to the extent such tax is attributable to the rate of tax in effect under section 3101) with respect to such taxable year or wages or compensation received during such taxable year, over
‘(2) the deduction allowable under section 164(f) for such taxable year.
‘(e) Special Rule for Estates and Trusts- For purposes of this section, in the case of an estate or trust, adjusted gross income shall be computed in the manner described in section 67(e).
‘(f) 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 (other than the credit allowed under section 27(a)) or for purposes of section 55.’.
(b) Clerical Amendment- The table of parts for subchapter A of chapter 1 is amended by adding at the end the following new item:
‘Part VIII--Fair Share Tax on High-Income Taxpayers’. (c) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2013.
SEC. 3. DENIAL OF DEDUCTION FOR OUTSOURCING EXPENSES. (a) In General- Part IX of subchapter B of chapter 1 is amended by adding at the end the following new section:
‘SEC. 280I. OUTSOURCING EXPENSES. ‘(a) In General- No deduction otherwise allowable under this chapter shall be allowed for any specified outsourcing expense.
‘(b) Specified Outsourcing Expense- For purposes of this section--
‘(1) IN GENERAL- The term ‘specified outsourcing expense’ means--
‘(A) any eligible expense paid or incurred by the taxpayer in connection with the elimination of any business unit of the taxpayer (or of any member of any expanded affiliated group in which the taxpayer is also a member) located within the United States, and
‘(B) any eligible expense paid or incurred by the taxpayer in connection with the establishment of any business unit of the taxpayer (or of any member of any expanded affiliated group in which the taxpayer is also a member) located outside the United States,
if such establishment constitutes the relocation of the business unit so eliminated. For purposes of the preceding sentence, a relocation shall not be treated as failing to occur merely because such elimination occurs in a different taxable year than such establishment.
‘(2) ELIGIBLE EXPENSES- The term ‘eligible expenses’ means--
‘(A) any amount for which a deduction is allowed to the taxpayer under section 162, and
‘(B) permit and license fees, lease brokerage fees, equipment installation costs, and, to the extent provided by the Secretary, other similar expenses.
Such term does not include any compensation which is paid or incurred in connection with severance from employment and, to the extent provided by the Secretary, any similar amount.
‘(3) BUSINESS UNIT- The term ‘business unit’ means--
‘(A) any trade or business, and
‘(B) any line of business, or functional unit, which is part of any trade or business.
‘(4) EXPANDED AFFILIATED GROUP- The term ‘expanded affiliated group’ means an affiliated group as defined in section 1504(a), determined without regard to section 1504(b)(3) and by substituting ‘more than 50 percent’ for ‘at least 80 percent’ each place it appears in section 1504(a). A partnership or any other entity (other than a corporation) shall be treated as a member of an expanded affiliated group if such entity is controlled (within the meaning of section 954(d)(3)) by members of such group (including any entity treated as a member of such group by reason of this paragraph).
‘(5) OPERATING EXPENSES NOT TAKEN INTO ACCOUNT- Any amount paid or incurred in connection with the on-going operation of a business unit shall not be treated as an amount paid or incurred in connection with the establishment or elimination of such business unit.
‘(c) Special Rules-
‘(1) APPLICATION TO DEDUCTIONS FOR DEPRECIATION AND AMORTIZATION- In the case of any portion of a specified outsourcing expense which is not deductible in the taxable year in which paid or incurred, such portion shall neither be chargeable to capital account nor amortizable.
‘(2) POSSESSIONS TREATED AS PART OF THE UNITED STATES- For purposes of this section, the term ‘United States’ shall be treated as including each possession of the United States (including the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands).
‘(d) Regulations- The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations which provide (or create a rebuttable presumption) that certain establishments of business units outside the United States will be treated as relocations (based on timing or such other factors as the Secretary may provide) of business units eliminated within the United States.’.
(b) Limitation on Subpart F Income of Controlled Foreign Corporations Determined Without Regard to Specified Outsourcing Expenses- Subsection (c) of section 952 is amended by adding at the end the following new paragraph:
‘(4) EARNINGS AND PROFITS DETERMINED WITHOUT REGARD TO SPECIFIED OUTSOURCING EXPENSES- For purposes of this subsection, earnings and profits of any controlled foreign corporation shall be determined without regard to any specified outsourcing expense (as defined in section 280I(b)).’.
(c) Clerical Amendment- The table of sections for part IX of subchapter B of chapter 1 is amended by adding at the end the following new item:
‘Sec. 280I. Outsourcing expenses.’.
(d) Effective Date- The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.
SEC. 4. MODIFICATIONS TO THE TAX ON PETROLEUM. (a) Definition of Crude Oil- Paragraph (1) of section 4612(a) is amended to read as follows:
‘(1) CRUDE OIL- The term ‘crude oil’ includes crude oil condensates, natural gasoline, any bitumen or bituminous mixture, and any oil derived from a bitumen or bituminous mixture.’.
(b) Removing Restrictions Relating to Oil Wells and Extraction Methods- Paragraph (2) of section 4612(a) is amended by striking ‘from a well located’.
(c) Clerical Amendment- Subclause (I) of section 4612(e)(2)(B)(ii) is amended by striking ‘tranferred’ and inserting ‘transferred’.
(d) Effective Date- The amendments made by subsections (a) and (b) shall apply to oil and petroleum products received or entered during calendar quarters beginning more than 60 days after the date of the enactment of this Act.
SEC 5. REVOCATION OF THE ALTERNATIVE MINIMUM INCOME TAX (AMT)
(a) For purposes of this legislation, "taxpayer" is defined as any individual, corporation, trust, or estate required to report income to the Internal Revenue Service for the purpose of calculating and paying tax.
(b) 26 USC 55, commonly known as the Alternative Minimum Income Tax, is hereby revoked.
SEC. 6. PLAIN ENGLISH SUMMARY. Amends the Internal Revenue Code to require an individual taxpayer whose adjusted gross income exceeds $1 million to pay a minimum income tax rate of 30% of the excess of the taxpayer's adjusted gross income over the taxpayer's modified charitable contribution deduction for the taxable year (tentative fair share tax).
Establishes the amount of such tax as the excess (if any) of the tentative fair share tax over the excess of: (1) the sum of the taxpayer's regular tax liability, the alternative minimum tax (AMT) amount, and the payroll tax for the taxable year; over (2) certain tax credits.
Requires an inflation adjustment to the $1 million income threshold for taxable years beginning after 2013.
Denies a tax deduction for specified outsourcing expenses.
Defines "specified outsourcing expense" to mean business-related expenses and fees incurred in connection with the elimination of any business unit of the taxpayer located within the United States and the establishment of such business unit outside the United States.
Expands the definition of "crude oil" for purposes of the excise tax on crude oil and petroleum products to include crude oil condensates, natural gasoline, any bitumen or bituminous mixture, and any oil derived from a bitumen or bituminous mixture.
Modifies the definition of "domestic crude oil" to mean any crude oil produced in the United States (currently, any crude oil produced from a well located in the United States).
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Replies:
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Landry
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12 Jun 2013, 01:30 PM
Post #21
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Winter is Coming to the Red States
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Aye on Sanchez
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Heather Holson
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12 Jun 2013, 01:31 PM
Post #22
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Aye on Sanchez
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Jack Bentley
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12 Jun 2013, 01:34 PM
Post #23
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Aye on Sanchez.
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Melissa Sanchez
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12 Jun 2013, 02:30 PM
Post #24
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Aye on Sanchez.
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The Doctor
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12 Jun 2013, 04:51 PM
Post #25
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#Luke2016 (The Hope of Democrats everywhere)
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Aye on Sanchez
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Vissering
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12 Jun 2013, 05:21 PM
Post #26
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I'm radioactive.
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Aye on Sanchez
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Brenninger
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12 Jun 2013, 05:22 PM
Post #27
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#Swaggy
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Aye on Sanchez
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Terrus
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12 Jun 2013, 05:24 PM
Post #28
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Madame Speaker,
Most experts agree that repealing the Alternate Minimum Tax will increase the deficit by 800 billion to 1.5 trillion dollar. I am surprised to see such fiscal irresponsibility from the members of this assembly -- are we really going to double or triple the deficit to give a huge benefit to a group of taxpayers who overwhelmingly make more than $100,000 a year?
I yield.
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Brenninger
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12 Jun 2013, 05:26 PM
Post #29
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#Swaggy
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Change vote to Nay on Sanchez amendment
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Daniel Hernandez
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12 Jun 2013, 05:48 PM
Post #30
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Wielder of the Gavel
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Rick Thomas
Aye on Sanchez
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Landry
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12 Jun 2013, 06:03 PM
Post #31
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Winter is Coming to the Red States
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Change to Nay on Sanchez
Madam Speaker,
If an offset is presented for the Sanchez Amendment, I'll gladly revert to supporting it. But after decreasing our deficit by $1.3 trillion over ten years through legislation presented by the Majority, and an additional instant $140 billion in the current budget, I cannot support an unoffset repeal.
I yield.
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Heather Holson
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12 Jun 2013, 06:17 PM
Post #32
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Change to NAY on Sanchez
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Nick
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12 Jun 2013, 07:31 PM
Post #33
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NAY on Sanchez
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Melissa Sanchez
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12 Jun 2013, 08:27 PM
Post #34
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Madam Speaker,
I request permission to revise and extend my remarks.
Before allowing for the abolishment of the A.M.T., the bill with the proposed amendment would yield additional rax revenue northward of $300 billion a year.
The A.M.T., in 2010, collected $102 billion.
Yes, wr can abolish the A.M.T. and not get further into debt.
I yield the floor, but reserve the balance of my time.
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Terrus
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12 Jun 2013, 08:30 PM
Post #35
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Madame Speaker,
Congressman Sanchez notes that this legislation will raise additional tax revenue northward of $300 billion a year. Yet abolishing the AMT will reduce tax revenue northward of $800 billion a year. I fail to see the balance.
I yield.
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Melissa Sanchez
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12 Jun 2013, 08:50 PM
Post #36
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Madam Speaker,
in 2010, the A.M.T collected $102 billion in revenue.
The estimates of the cost of repealing the A.M.T . are all over the map, depending on the stance toward it of whoever made the estimate. . However, no Congress has been willing to allow the full weight of the A.M.T. to fall on the Middle Class. A weight that, eith each passing year, bevomes more threatening because the A.M.T is, unlike the regular tax code, not indexed to inflation.
I will work up more solid estimates shortly, but trading off a solid $300 billion for any illusionary number...well, a bird in the hand.
I yield the floor, but reserve the balance of my time.
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Melissa Sanchez
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12 Jun 2013, 09:57 PM
Post #37
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Madam Speaker,
I ask permission to extend and revise my remarks.
The total estimate from the bill with the Sanchez Amendment, without subtracting out the A.M.T., based on 2011 average tax rates and total tax revenue for corporations, individuals, and estates, is $538 billion, rounded down.
As previously noted, the estimates on the cost of repealing the A.M.T. vary widely, depending to a certain extent on how the people preparing the estimates view the A.M.T.
I would like to correct a previous statement which I made. The A.M.T. was finally adjusted for inflation in 2012, retroactive to the 2011 tax year. Therefore, its impact would not reach taxpayers with an income of less than $45,000.
Really, isn't it time we got rid of this particular nightmare of the tax code?
I yield the balance of my time.
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Terrus
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12 Jun 2013, 10:00 PM
Post #38
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Madame Speaker,
Where does the Congresswoman get the $102 billion figure? Most figures I saw were between $800 billion and $1.5 trillion.
i yield.
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Terrus
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12 Jun 2013, 10:35 PM
Post #39
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Madame Speaker,
I've now researched the matter further, and upon review, realized my error. I was looking at ten year figures -- not single year figures. Therefore, please change my vote to YEA on the Sanchez amendment.
I YIELD.
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Heather Holson
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13 Jun 2013, 04:05 PM
Post #40
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The Sanchez amendment passes. Debate continues.
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