[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6104 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 6104

 To provide a temporary extension for the middle class of certain tax 
                relief enacted in 2001, 2003, and 2009.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 11, 2012

 Mr. Richmond introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To provide a temporary extension for the middle class of certain tax 
                relief enacted in 2001, 2003, and 2009.

    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 ``Working Families Tax Protection Act 
of 2012''.

SEC. 2. EXTENSION OF 2001 TAX RELIEF FOR THE MIDDLE CLASS.

    (a) In General.--In the case of the provisions of the Economic 
Growth and Tax Relief Reconciliation Act of 2001 which are specified in 
subsection (b) (and the amendments made by such provisions), section 
901 of such Act shall be applied by substituting ``December 31, 2013'' 
for ``December 31, 2012'' the first place it appears.
    (b) Specified EGTRRA Provisions.--The following provisions of the 
Economic Growth and Tax Relief Reconciliation Act of 2001 are specified 
in this subsection:
            (1) Title I (relating to individual income tax rate 
        reductions).
            (2) Title II (relating to tax benefits related to 
        children).
            (3) Title III (relating to marriage penalty relief).
            (4) Title IV (relating to affordable education provisions).
    (c) Certain Provisions Not Applicable to High-Income Individuals.--
            (1) Individual income tax rates.--Subsection (i) of section 
        1 of the Internal Revenue Code of 1986 is amended by striking 
        paragraph (2), by redesignating paragraph (3) as paragraph (4), 
        and by inserting after paragraph (1) the following new 
        paragraphs:
            ``(2) 25- and 28-Percent rate brackets.--The tables under 
        subsections (a), (b), (c), (d), and (e) shall be applied--
                    ``(A) by substituting `25%' for `28%' each place it 
                appears (before the application of subparagraph (B)),
                    ``(B) by substituting `28%' for `31%' each place it 
                appears, and
                    ``(C) by substituting `33%' for `36%' each place it 
                appears.
            ``(3) 35-Percent rate bracket.--
                    ``(A) In general.--In the case of taxable years 
                beginning after December 31, 2012--
                            ``(i) the rate of tax under subsections 
                        (a), (b), (c), and (d) on a taxpayer's taxable 
                        income in the highest rate bracket shall be 35 
                        percent to the extent such income does not 
                        exceed an amount equal to the excess of--
                                    ``(I) the applicable threshold, 
                                over
                                    ``(II) the dollar amount at which 
                                such bracket begins, and
                            ``(ii) the 39.6 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 threshold.--For purposes of this 
                paragraph, the term `applicable threshold' means--
                            ``(i) $500,000 in the case of subsection 
                        (a), and
                            ``(ii) \1/2\ the amount applicable under 
                        clause (i) in the case of subsections (b), (c), 
                        and (d).
                    ``(C) Highest rate bracket.--For purposes of this 
                paragraph, the term `highest rate bracket' means the 
                bracket which would (determined without regard to this 
                paragraph) be the 39.6-percent rate bracket.''.
            (2) Phaseout of personal exemptions and itemized 
        deductions.--
                    (A) Overall limitation on itemized deductions.--
                Section 68 of such Code is amended--
                            (i) by striking ``the applicable amount'' 
                        the first place it appears in subsection (a) 
                        and inserting ``the applicable threshold in 
                        effect under section 1(i)(3)'',
                            (ii) by striking ``the applicable amount'' 
                        in subsection (a)(1) and inserting ``such 
                        applicable threshold'',
                            (iii) by striking subsection (b) and 
                        redesignating subsections (c), (d), and (e) as 
                        subsections (b), (c), and (d), respectively, 
                        and
                            (iv) by striking subsections (f) and (g).
                    (B) Phaseout of deductions for personal 
                exemptions.--
                            (i) In general.--Paragraph (3) of section 
                        151(d) of such Code is amended--
                                    (I) by striking ``the threshold 
                                amount'' in subparagraphs (A) and (B) 
                                and inserting ``the applicable 
                                threshold in effect under section 
                                1(i)(3)'',
                                    (II) by striking subparagraph (C) 
                                and redesignating subparagraph (D) as 
                                subparagraph (C), and
                                    (III) by striking subparagraphs (E) 
                                and (F).
                            (ii) Conforming amendment.--Paragraph (4) 
                        of section 151(d) of such Code is amended--
                                    (I) by striking subparagraph (B),
                                    (II) by redesignating clauses (i) 
                                and (ii) of subparagraph (A) as 
                                subparagraphs (A) and (B), 
                                respectively, and by indenting such 
                                subparagraphs (as so redesignated) 
                                accordingly, and
                                    (III) by striking all that precedes 
                                ``in a calendar year after 1989,'' and 
                                inserting the following:
            ``(4) Inflation adjustment.--In the case of any taxable 
        year beginning''.
            (3) Application of sunsets.--
                    (A) Individual income tax rates.--Section 901 of 
                the Economic Growth and Tax Relief Reconciliation Act 
                of 2001 shall apply to the amendments made by paragraph 
                (1) to the same extent and in the same manner as such 
                section applies to the amendments made by section 101 
                of such Act.
                    (B) Phaseout of personal exemptions and itemized 
                deductions.--Section 901 of the Economic Growth and Tax 
                Relief Reconciliation Act of 2001 shall apply to the 
                amendments made by paragraph (2) to the same extent and 
                in the same manner as such section applies to the 
                amendments made by section 102 of such Act.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2012.

SEC. 3. EXTENSION OF 2003 TAX RELIEF FOR THE MIDDLE CLASS.

    (a) 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, 2013''.
    (b) Certain Provisions Not Applicable to High-Income Individuals.--
            (1) In general.--Paragraph (1) of section (1)(h) of the 
        Internal Revenue Code of 1986 is amended by striking 
        subparagraph (C), by redesignating subparagraphs (D) and (E) as 
        subparagraphs (E) and (F) 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 
                                39.6 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 39.6 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 the Internal 
                        Revenue Code of 1986.
                            (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, 2010)'' and 
                inserting ``20 percent''.
            (5) Application of sunset.--Section 303 of the Jobs and 
        Growth Tax Relief Reconciliation Act of 2003 shall apply to the 
        amendments made by this subsection to the same extent and in 
        the same manner as such section applies to the amendments made 
        by title III of such Act.
    (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.

SEC. 4. EXTENSION OF 2009 TAX RELIEF.

    (a) American Opportunity Tax Credit.--
            (1) In general.--Section 25A(i) of the Internal Revenue 
        Code of 1986 is amended by striking ``or 2012'' and inserting 
        ``2012, or 2013''.
            (2) 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, and 2013''.
    (b) Child Tax Credit.--Section 24(d)(4) of the Internal Revenue 
Code of 1986 is amended--
            (1) by striking ``and 2012'' in the heading and inserting 
        ``2012, and 2013'', and
            (2) by striking ``or 2012'' and inserting ``2012, or 
        2013''.
    (c) Earned Income Tax Credit.--Section 32(b)(3) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``and 2012'' in the heading and inserting 
        ``2012, and 2013'', and
            (2) by striking ``or 2012'' and inserting ``2012, or 
        2013''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2012.
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