I 112th CONGRESS 2d Session H. R. 6535 IN THE HOUSE OF REPRESENTATIVES September 21, 2012 Mr. Nadler (for himself and Ms. Schakowsky) introduced the following bill; which was referred to the Committee on the Budget, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Balanced Budget and Emergency Deficit Control Act of 1985 to repeal the sequestration added by the Budget Control Act of 2011, and for other purposes.

1.

Short title

This Act may be cited as the Save America’s National Economy Act.

2.

Repealer

(a)

In General

Section 251A of the Balanced Budget and Emergency Deficit Control Act of 1985, as added by the Budget Control Act of 2011, is repealed. (b)

Conforming Amendment

The item relating to section 251A in the table of contents set forth in section 250(a) of the Balanced Budget and Emergency Deficit Control Act of 1985 is repealed.

3.

Increased tax rates for taxpayers with more than $1,000,000 taxable income

(a)

In general

(1)

Married individuals filing joint returns and surviving spouses

The table contained in subsection (a) of section 1 is amended to read as follows: If taxable income is:The tax is: Not over $69,00015% of taxable income. Over $69,000 but not over $139,350$10,350, plus 28% of the excess over $69,000. Over $139,350 but not over $212,300$30,048, plus 31% of the excess over $139,350. Over $212,300 but not over $379,150$52,662.50, plus 36% of the excess over $212,300. Over $379,150 but not over $1,000,000$112,728.50, plus 39.6% of the excess over $379,150. Over $1,000,000 but not over $10,000,000$358,585.10, plus 45% of the excess over $1,000,000. Over $10,000,000 but not over $20,000,000$4,408,585.10, plus 46% of the excess over $10,000,000. Over $20,000,000 but not over $100,000,000$9,008,585.10, plus 47% of the excess over $20,000,000. Over $100,000,000 but not over $1,000,000,000$46,608,585.10, plus 48% of the excess over $100,000,000. Over $1,000,000,000$478,608,585.10, plus 49% over the excess over $1,000,000,000. (2)

Heads of household

The table contained in subsection (b) of section 1 of such Code is amended to read as follows: If taxable income is:The tax is: Not over $46,25015% of taxable income. Over $46,250 but not over $119,400$6,937.50, plus 28% of the excess over $46,250. Over $119,400 but not over $193,350$27,419.50, plus 31% of the excess over $119,400. Over $193,350 but not over $379,150$50,344, plus 36% of the excess over $193,350. Over $379,150 but not over $1,000,000$117,232, plus 39.6% of the excess over $379,150. Over $1,000,000 but not over $10,000,000$363,088.60, plus 45% of the excess over $1,000,000. Over $10,000,000 but not over $20,000,000$4,413,088.60, plus 46% of the excess over $10,000,000. Over $20,000,000 but not over $100,000,000$9,013,088.60, plus 47% of the excess over $20,000,000. Over $100,000,000 but not over $1,000,000,000$46,613,088.60, plus 48% of the excess over $100,000,000. Over $1,000,000,000$478,613,088.60, plus 49% of the excess over $1,000,000,000. (3)

Unmarried individuals (other than surviving spouses and heads of households)

The table contained in subsection (c) of section 1 of such Code is amended to read as follows: If taxable income is:The tax is: Not over $34,50015% of taxable income. Over $34,500 but not over $83,600$5,175, plus 28% of the excess over $34,500. Over $83,600 but not over $174,400$18,923, plus 31% of the excess over $83,600. Over $174,400 but not over $379,150$47,071, plus 36% of the excess over $174,400. Over $379,150 but not over $1,000,000$120,781, plus 39.6% of the excess over $379,150. Over $1,000,000 but not over $10,000,000$366,637.60, plus 45% of the excess over $1,000,000. Over $10,000,000 but not over $20,000,000$4,416,637.60, plus 46% of the excess over $10,000,000. Over $20,000,000 but not over $100,000,000$9,016,637.60, plus 47% of the excess over $20,000,000. Over $100,000,000 but not over $1,000,000,000$46,616,637.60, plus 48% of the excess over $100,000,000. Over $1,000,000,000$478,616,637.60, plus 49% of the excess over $1,000,000,000. (4)

Married individuals filing separate returns

The table contained in subsection (d) of section 1 of such Code is amended to read as follows: If taxable income is:The tax is: Not over $34,500plus 15% of taxable income. Over $34,500 but not over $69,675$5,175, plus 28% of the excess over $34,500. Over $69,675 but not over $106,150$15,024, plus 31% of the excess over $69,675. Over $106,150 but not over $189,575$26,331.25, plus 35% of the excess over $106,150. Over $189,575 but not over $500,000 $55,530, plus 39.6% of the excess over $189,575. Over $500,000 but not over $5,000,000$178,458.30, plus 45% of the excess over $500,000. Over $5,000,000 but not over $10,000,000$2,203,458.30, plus 46% of the excess over $5,000,000. Over $10,000,000 but not over $50,000,000$4,503,458.30, plus 47% of the excess over $10,000,000. Over $50,000,000 but not over $500,000,000$23,303,458.30, plus 48% of the excess over $50,000,000. Over $500,000,000$239,303,458.30, plus 49% of the excess over $500,000,000. (b)

Recapture of lower capital gains rates for individuals subject to added rate brackets

(1)

In general

Section 1 of such Code is amended by adding at the end the following new subsection: (j)

Special rule for capital gains in case of taxable income subject to at least 45-Percent rate bracket

If for the taxable year a taxpayer has taxable income in excess of the minimum dollar amount for the 45-percent rate bracket and has a net capital gain, then— (1)the tax imposed by this section for the taxable year with respect to such excess shall be determined without regard to subsection (h), and (2)the amount of net capital gain of the taxpayer taken into account for the taxable year under subsection (h) shall be reduced by the lesser of— (A)such excess, or (B)the net capital gain for the taxable year. Any reduction in net capital gain under the preceding sentence shall be allocated between adjusted net capital gain, unrecaptured 1250 gain, and section 1202 gain in amounts proportionate to the amounts of each such gain.. (2)

Conforming amendment

Paragraph (1) of section 1(h) of such Code is amended by striking If a taxpayer has and inserting Except to the extent provided in subsection (j), if a taxpayer has. (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2013.

4.

Savings from overseas contingency and related activities

(a)

In general

Section 251(b)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)) is amended by adding at the end the following new subparagraph: (E)

Overseas contingency and related activities

(i)

Cap adjustment

If a bill or joint resolution making appropriations for a fiscal year is enacted that specifies an amount for overseas contingency and related activities for that fiscal year after taking into account any other bills or joint resolutions enacted for that fiscal year that specify an amount for overseas contingency and related activities, but do not exceed in the aggregate the amounts specified in clause (ii), then the adjustments for that fiscal year shall be the additional new budget authority provided in that Act for such activities for that fiscal year. (ii)

Levels

The levels for overseas contingency and related activities specified in this subparagraph are as follows: (I)For fiscal year 2013, $83,000,000,000 in budget authority. (II)For fiscal year 2014, $50,000,000,000 in budget authority. (III)For fiscal year 2015, $50,000,000,000 in budget authority. (IV)For fiscal year 2016, $50,000,000,000 in budget authority. (V)For fiscal year 2017, $50,000,000,000 in budget authority. (VI)For fiscal year 2018, $50,000,000,000 in budget authority. (VII)For fiscal year 2019, $50,000,000,000 in budget authority. (VIII)For fiscal year 2020, $50,000,000,000 in budget authority. (IX)For fiscal year 2021, $50,000,000,000 in budget authority. . (b)

Breach

Section 251(a)(2) of such Act (2 U.S.C. 901(a)(2)) is amended to read as follows: (2)

Eliminating a breach

(A)

In general

Each non-exempt account within a category shall be reduced by a dollar amount calculated by multiplying the enacted level of sequestrable budgetary resources in that account by the uniform percentage necessary to eliminate a breach within that category. (B)

Overseas contingencies

Any amount of budget authority for overseas contingency operations and related activities for fiscal years 2013 through 2021 in excess of the levels set in subsection 251(b)(2)(E) shall be counted in determining whether a breach has occurred in the security category and the nonsecurity category on a proportional basis to the total spending for overseas contingency operations in the security category and the nonsecurity category. . (c)

Conforming amendment

Section 251(b)(2)(A) of such Act (2 U.S.C. 901(b)(2)(A)) is amended to read as follows: (A)

Emergency appropriations

If, for any fiscal year, appropriations for discretionary accounts are enacted that the Congress designates as emergency requirements in statute on an account by account basis and the President subsequently so designates, the adjustment shall be the total of such appropriations in discretionary accounts designated as emergency requirements. .