[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6100 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 6100

   To amend the Internal Revenue Code of 1986 to provide a temporary 
 extension of the 2001 and 2003 tax cuts for the middle class, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 11, 2012

Mr. Braley of Iowa 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 provide a temporary 
 extension of the 2001 and 2003 tax cuts for the middle class, 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 ``Middle Class Tax Cut Protection Act 
of 2012''.

SEC. 2. 2-YEAR EXTENSION OF TAX RELIEF FOR MIDDLE CLASS.

    (a) Extension of 2001 Tax Relief.--
            (1) In general.--Section 901 of the Economic Growth and Tax 
        Relief Reconciliation Act of 2001 is amended by striking 
        ``December 31, 2012'' both places it appears and inserting 
        ``December 31, 2014''.
            (2) Effective date.--The amendment made by this subsection 
        shall take effect as if included in the enactment of the 
        Economic Growth and Tax Relief Reconciliation Act of 2001.
    (b) Extension of 2003 Tax Relief.--
            (1) In general.--Section 303 of the Jobs and Growth Tax 
        Relief Reconciliation Act of 2003 is amended by striking 
        ``December 31, 2012'' and inserting ``December 31, 2014''.
            (2) Effective date.--The amendment made by this section 
        shall take effect as if included in the enactment of the Jobs 
        and Growth Tax Relief Reconciliation Act of 2003.
    (c) Temporary Extension of 2009 Tax Relief.--
            (1) American opportunity tax credit.--
                    (A) In general.--Section 25A(i) of the Internal 
                Revenue Code of 1986 is amended by striking ``or 2012'' 
                and inserting ``, 2012, 2013, or 2014''.
                    (B) Treatment of possessions.--Section 1004(c)(1) 
                of the American Recovery and Reinvestment Tax Act of 
                2009 is amended by striking ``and 2012'' each place it 
                appears and inserting ``2012, 2013, and 2014''.
                    (C) Child tax credit.--Section 24(d)(4) of such 
                Code is amended--
                            (i) by striking ``and 2012'' in the heading 
                        and inserting ``2012, 2013, and 2014'', and
                            (ii) by striking ``or 2012'' and inserting 
                        ``2012, 2013, or 2014''.
                    (D) Earned income tax credit.--Section 32(b)(3) of 
                such Code is amended--
                            (i) by striking ``and 2012'' in the heading 
                        and inserting ``2012, 2013, and 2014'', and
                            (ii) by striking ``or 2012'' and inserting 
                        ``2012, 2013, or 2014''.

SEC. 3. CERTAIN TAX CUTS NOT EXTENDED FOR HIGH INCOME INDIVIDUALS.

    (a) Individual Income Tax Rates.--Subsection (i) of section 1 of 
the Internal Revenue Code of 1986 is amended by redesignating paragraph 
(3) as paragraph (4) and by inserting after paragraph (2) the following 
new paragraph:
            ``(3) 33-Percent rate bracket.--
                    ``(A) In general.--In the case of taxable years 
                beginning after December 31, 2012--
                            ``(i) paragraph (2) shall not apply in 
                        determining the rates of tax for the fourth 
                        rate bracket and higher rate brackets,
                            ``(ii) the rate of tax under subsections 
                        (a), (b), (c), and (d) on a taxpayer's taxable 
                        income in the fourth rate bracket shall be 33 
                        percent to the extent such income does not 
                        exceed an amount equal to the excess of--
                                    ``(I) the applicable amount, over
                                    ``(II) the dollar amount at which 
                                such bracket begins, and
                            ``(iii) the 36-percent rate of tax under 
                        such subsections shall apply only to the 
                        taxpayer's taxable income in such bracket in 
                        excess of the amount to which clause (i) 
                        applies.
                    ``(B) Applicable amount.--For purposes of this 
                paragraph, the term `applicable amount' means the 
                excess of--
                            ``(i) the applicable threshold, over
                            ``(ii) the sum of the following amounts in 
                        effect for the taxable year:
                                    ``(I) the basic standard deduction 
                                (within the meaning of section 
                                63(c)(2)), and
                                    ``(II) the exemption amount (within 
                                the meaning of section 151(d)(1)) (or, 
                                in the case of subsection (a), 2 such 
                                exemption amounts).
                    ``(C) Applicable threshold.--For purposes of this 
                paragraph, the term `applicable threshold' means--
                            ``(i) $250,000 in the case of subsection 
                        (a),
                            ``(ii) $200,000 in the case of subsections 
                        (b) and (c), and
                            ``(iii) \1/2\ the amount applicable under 
                        clause (i) (after adjustment, if any, under 
                        subparagraph (E)) in the case of subsection 
                        (d).
                    ``(D) Fourth rate bracket.--For purposes of this 
                paragraph, the term `fourth rate bracket' means the 
                bracket which would (determined without regard to this 
                paragraph) be the 36-percent rate bracket.
                    ``(E) Inflation adjustment.--For purposes of this 
                paragraph, a rule similar to the rule of paragraph 
                (1)(C) shall apply with respect to taxable years 
                beginning in calendar years after 2012, applied by 
                substituting `2010' for `1992' in subsection 
                (f)(3)(B).''.
    (b) Reduced Rate on Capital Gains and Dividends.--
            (1) In general.--Paragraph (1) of section (1)(h) of such 
        Code is amended by striking subparagraph (C), by redesignating 
        subparagraphs (D) and (E) as subparagraphs (E) and (F), 
        respectively, and by inserting after subparagraph (B) the 
        following new subparagraphs:
                    ``(C) 15 percent of the lesser of--
                            ``(i) so much of the adjusted net capital 
                        gain (or, if less, taxable income) as exceeds 
                        the amount on which a tax is determined under 
                        subparagraph (B), or
                            ``(ii) the excess (if any) of--
                                    ``(I) the amount of taxable income 
                                which would (without regard to this 
                                subsection) be taxed at a rate below 36 
                                percent, over
                                    ``(II) the sum of the amounts on 
                                which tax is determined under 
                                subparagraphs (A) and (B),
                    ``(D) 20 percent of the adjusted net capital gain 
                (or, if less, taxable income) in excess of the sum of 
                the amounts on which tax is determined under 
                subparagraphs (B) and (C),''.
            (2) Dividends.--Subparagraph (A) of section 1(h)(11) of 
        such Code is amended by striking ``qualified dividend income'' 
        and inserting ``so much of the qualified dividend income as 
        does not exceed the excess (if any) of--
                            ``(i) the amount of taxable income which 
                        would (without regard to this subsection) be 
                        taxed at a rate below 36 percent, over
                            ``(ii) taxable income reduced by qualified 
                        dividend income.''.
            (3) Minimum tax.--Section 55 of such Code is amended by 
        adding at the end the following new subsection:
    ``(f) Application of Maximum Rate of Tax on Net Capital Gain of 
Noncorporate Taxpayers.--In the case of taxable years beginning after 
December 31, 2012, the amount determined under subparagraph (C) of 
subsection (b)(3) shall be the sum of--
            ``(1) 15 percent of the lesser of--
                    ``(A) so much of the adjusted net capital gain (or, 
                if less, taxable excess) as exceeds the amount on which 
                tax is determined under subparagraph (B) of subsection 
                (b)(3), or
                    ``(B) the excess described in section 
                1(h)(1)(C)(ii), plus
            ``(2) 20 percent of the adjusted net capital gain (or, if 
        less, taxable excess) in excess of the sum of the amounts on 
        which tax is determined under subsection (b)(3)(B) and 
        paragraph (1).''.
            (4) Conforming amendments.--
                    (A) The following provisions are amended by 
                striking ``15 percent'' and inserting ``20 percent'':
                            (i) Section 1445(e)(1) of such Code.
                            (ii) The second sentence of section 
                        7518(g)(6)(A) of such Code.
                            (iii) Section 53511(f)(2) of title 46, 
                        United States Code.
                    (B) Sections 531 and 541 of the Internal Revenue 
                Code of 1986 are each amended by striking ``15 percent 
                of'' and inserting ``the product of the highest rate of 
                tax under section 1(c) and''.
                    (C) Section 1445(e)(6) of such Code is amended by 
                striking ``15 percent (20 percent in the case of 
                taxable years beginning after December 31, 2011)'' and 
                inserting ``20 percent''.
    (c) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after December 31, 2012.
            (2) Withholding.--The amendments made by subparagraphs 
        (A)(i) and (C) of subsection (b)(4) shall apply to amounts paid 
        on or after January 1, 2013.
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