HR 417
112th CONGRESS
1st Session
H. R. 417
To amend the Internal Revenue Code of 1986 to repeal the expansion
of certain information reporting requirements to corporations and to payments
for property, to impose a surcharge on high income taxpayers, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
January 25, 2011
Mr. OWENS (for himself, Mr. TONKO, Ms. PINGREE of Maine, Mr. LOEBSACK, Mr.
KEATING, Mr. WELCH, Mr. DEFAZIO, Ms. JACKSON LEE of Texas, Ms. HIRONO, Mr.
PASCRELL, Mr. HOLT, Mr. WEINER, Mr. MICHAUD, and Mr. HINCHEY) introduced the
following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to repeal the expansion
of certain information reporting requirements to corporations and to payments
for property, to impose a surcharge on high income taxpayers, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Small Business Tax Relief Act of 2011'.
SEC. 2. REPEAL OF EXPANSION OF CERTAIN INFORMATION REPORTING REQUIREMENTS
TO CORPORATIONS AND TO PAYMENTS FOR PROPERTY.
Section 9006 of the Patient Protection and Affordable Care Act is repealed.
Each provision of law amended by such section is amended to read as such provision
would read if such section had never been enacted.
SEC. 3. SURCHARGE ON HIGH INCOME INDIVIDUALS.
(a) In General- Subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new part:
`PART VIII--SURCHARGE ON HIGH INCOME INDIVIDUALS
`Sec. 59C. Surcharge on high income individuals.
`SEC. 59C. SURCHARGE ON HIGH INCOME INDIVIDUALS.
`(a) General Rule- In the case of a taxpayer other than a corporation, there
is hereby imposed (in addition to any other tax imposed by this subtitle)
a tax equal to 5.4 percent of so much of the modified adjusted gross income
of the taxpayer as exceeds $1,000,000.
`(b) Taxpayers Not Making a Joint Return- In the case of any taxpayer other
than a taxpayer making a joint return under section 6013 or a surviving spouse
(as defined in section 2(a)), subsection (a) shall be applied by substituting
for the dollar amount therein (after any increase determined under subsection
(d)) a dollar amount equal to--
`(1) 50 percent of the dollar amount so in effect in the case of a married
individual filing a separate return, and
`(2) 80 percent of the dollar amount so in effect in any other case.
`(c) Modified Adjusted Gross Income- For purposes of this section, the term
`modified adjusted gross income' means adjusted gross income reduced by any
deduction (not taken into account in determining adjusted gross income) allowed
for investment interest (as defined in section 163(d)). In the case of an
estate or trust, adjusted gross income shall be determined as provided in
section 67(e).
`(d) Inflation Adjustments-
`(1) IN GENERAL- In the case of taxable years beginning after 2011, the
dollar amount in subsection (a) shall be increased by an amount equal to--
`(A) such dollar amount, multiplied by
`(B) the cost-of-living adjustment determined under section 1(f)(3) for
the calendar year in which the taxable year begins, by substituting `calendar
year 2010' for `calendar year 1992' in subparagraph (B) thereof.
`(2) ROUNDING- If any amount as adjusted under paragraph (1) is not a multiple
of $5,000, such amount shall be rounded to the next lowest multiple of $5,000.
`(1) NONRESIDENT ALIEN- In the case of a nonresident alien individual, only
amounts taken into account in connection with the tax imposed under section
871(b) shall be taken into account under this section.
`(2) CITIZENS AND RESIDENTS LIVING ABROAD- The dollar amount in effect under
subsection (a) (after the application of subsections (b) and (d)) shall
be decreased by the excess of--
`(A) the amounts excluded from the taxpayer's gross income under section
911, over
`(B) the amounts of any deductions or exclusions disallowed under section
911(d)(6) with respect to the amounts described in subparagraph (A).
`(3) CHARITABLE TRUSTS- Subsection (a) shall not apply to a trust all the
unexpired interests in which are devoted to one or more of the purposes
described in section 170(c)(2)(B).
`(4) 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 or for purposes of section 55.'.
(b) Clerical Amendment- The table of parts for subchapter A of chapter 1 of
such Code is amended by adding at the end the following new item:
`part viii. surcharge on high income individuals.'.
(c) Section 15 Not To Apply- The amendment made by subsection (a) shall not
be treated as a change in a rate of tax for purposes of section 15 of the
Internal Revenue Code of 1986.
(d) Effective Date- The amendments made by this section shall apply to taxable
years beginning after December 31, 2010.
(e) Deficit Reduction- Revenues received pursuant to the amendments made by
this section shall be deposited in the Treasury and used for deficit reduction,
except that in the case of a fiscal year for which there is no Federal budget
deficit (determined after taking into account the repeal and amendments made
by section 2), such amounts shall be used to reduce the Federal debt (in such
manner as the Secretary of the Treasury considers appropriate).
END
