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HR 58 Fair Share Act of 2014
Topic Started: 12 Jun 2013, 01:02 AM (389 Views)
Heather Holson
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48 hours for debate

Quote:
 
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).
Edited by Heather Holson, 13 Jun 2013, 04:06 PM.
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Melissa Sanchez
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Madam Speaker,

I ask the indulgence of this body in a correction. I must admit that I did not expect the 30% figure to yield so much money, and I'm sure that our Republican colleagues in the Senate will find it objectionably high.

I therefore move to strike "30%" and replace it with the revenue neutral "20%".

I remind my colleagues that the intent of the bill is not to enhance revenue.

I yield, but reserve the balance of my time.
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Patrick Callaghan
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New England Republican >:D
Madame Speaker,

I second the motion of the lady from Florida.

I yield
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Heather Holson
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With less than 24 hours left to debate the motion is declared dilatory by the chair. Debate continues.
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Daniel Hernandez
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Wielder of the Gavel
Rick Thomas

Madame Speaker,

I request permission to revise and extend my remarks.

I move to suspend the rules to allow time for consideration of the amendment. I further ask for unanimous consent on suspension of the rules to allow for such.

I yield.
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Heather Holson
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With less than 24 hours left in debate the motion is ruled dilatory.
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Melissa Sanchez
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Madam Speaker,


I appeal the ruling of the chair.

I yield.
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Heather Holson
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Per the rules of the House of Representatives: The Speaker may rule an amendment out of order for the following reasons:
(i)It is Dilatory if made with less time remaining needed for consideration [NOT appealable]. Debate continues.
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Melissa Sanchez
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Madam speaker,

This is NOT Bush v Gore, where the Supreme Court told Florida what it had to do, then told them they didn't have enough time to do it. You have the discretion to extend time to allow the vote.

The rules exist to allow debate, not to allow the Chair to wield the gavel like a weapon to strike those down who might slow the train.

I yield.

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Heather Holson
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Debate has now ended. This legislation shall be brought forth for a vote.
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