[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1944 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 251
112th CONGRESS
  1st Session
                                S. 1944

    To create jobs by providing payroll tax relief for middle class 
            families and businesses, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 5, 2011

    Mr. Casey (for himself, Mr. Reid, Mr. Schumer, and Mr. Durbin) 
      introduced the following bill; which was read the first time

                            December 6, 2011

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
    To create jobs by providing payroll tax relief for middle class 
            families and businesses, 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 Act of 2011''.

SEC. 2. TEMPORARY EXTENSION AND EXPANSION OF EMPLOYEE PAYROLL TAX 
              RELIEF.

    (a) Extension.--Section 601(c) of the Tax Relief, Unemployment 
Insurance Reauthorization, and Job Creation Act of 2010 (26 U.S.C. 1401 
note) is amended by striking ``year 2011'' and inserting ``years 2011 
and 2012''.
    (b) Increased Relief.--
            (1) In general.--Subsection (a) of section 601 of the Tax 
        Relief, Unemployment Insurance Reauthorization, and Job 
        Creation Act of 2010 (26 U.S.C. 1401 note) is amended--
                    (A) by inserting ``(9.3 percent for calendar year 
                2012)'' after ``10.40 percent'' in paragraph (1), and
                    (B) in paragraph (2)--
                            (i) by striking ``(including'' and 
                        inserting ``(3.1 percent in the case of 
                        calendar year 2012), including'' after ``4.2 
                        percent'', and
                            (ii) by striking ``Code)'' and inserting 
                        ``Code''.
            (2) Coordination with individual deduction for employment 
        taxes.--Subparagraph (A) of section 601(b)(2) of such Act is 
        amended by inserting ``(66.67 percent for taxable years which 
        begin in 2012)'' after ``59.6 percent''.
    (c) Technical Amendments.--Paragraph (2) of section 601(b) of the 
Tax Relief, Unemployment Insurance Reauthorization, and Job Creation 
Act of 2010 (26 U.S.C. 1401 note) is amended--
            (1) by inserting ``of such Code'' after ``164(f)'',
            (2) by inserting ``of such Code'' after ``1401(a)'' in 
        subparagraph (A), and
            (3) by inserting ``of such Code'' after ``1401(b)'' in 
        subparagraph (B).

SEC. 3. SURTAX ON MILLIONAIRES.

    (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--SURTAX ON MILLIONAIRES

``Sec. 59B. Surtax on millionaires.

``SEC. 59B. SURTAX ON MILLIONAIRES.

    ``(a) General Rule.--In the case of a taxpayer other than a 
corporation for any taxable year beginning after 2012 and before 2022, 
there is hereby imposed (in addition to any other tax imposed by this 
subtitle) a tax equal to 1.9 percent of so much of the modified 
adjusted gross income of the taxpayer for such taxable year as exceeds 
the threshold amount.
    ``(b) Threshold Amount.--For purposes of this section--
            ``(1) In general.--The threshold amount is $1,000,000.
            ``(2) Inflation adjustment.--
                    ``(A) In general.--In the case of any 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 2011' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--If any amount as adjusted under 
                paragraph (1) is not a multiple of $10,000, such amount 
                shall be rounded to the next highest multiple of 
                $10,000.
            ``(3) Married filing separately.--In the case of a married 
        individual filing separately for any taxable year, the 
        threshold amount shall be one-half of the amount otherwise in 
        effect under this subsection for the taxable year.
    ``(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) Special Rules.--
            ``(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) 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 the Internal Revenue Code of 1986 is amended by adding at 
the end the following new item:

                ``part viii. surtax on millionaires.''.

    (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, 2012.

SEC. 4. UNWARRANTED UNEMPLOYMENT COMPENSATION.

    (a) In General.--Subtitle E of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new chapter:

          ``CHAPTER 56--UNWARRANTED UNEMPLOYMENT COMPENSATION

``Sec. 5895. Unwarranted unemployment compensation.

``SEC. 5895. UNWARRANTED UNEMPLOYMENT COMPENSATION.

    ``(a) Imposition of Tax.--There is hereby imposed on any taxpayer 
with adjusted gross income (as defined in section 62) for any taxable 
year of at least $1,000,000 ($500,000, in the case of a married 
individual filing a separate return), a tax equal to 50 percent (55 
percent in the case of a taxable year beginning in 2011 or 2012) of any 
unemployment compensation (as defined in section 85(b)) received by 
such taxpayer in such taxable year.
    ``(b) Administrative Provisions.--For purposes of the deficiency 
procedures of subtitle F, any tax imposed by this section shall be 
treated as a tax imposed by subtitle A.''.
    (b) Clerical Amendment.--The table of chapters for subtitle E of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new item:

         ``Chapter 56--Unwarranted Unemployment Compensation''.

    (c) Tax Not Deductible.--Section 275(a) of the Internal Revenue 
Code of 1986 is amended by inserting after paragraph (6) the following 
new paragraph:
            ``(7) Tax imposed by section 5895.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2010.

SEC. 5. ENDING SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENEFITS FOR 
              MILLIONAIRES.

    (a) In General.--Section 6 of the Food and Nutrition Act of 2008 (7 
U.S.C. 2015) is amended by adding at the end the following:
    ``(r) Disqualification for Receipt of Assets of at Least 
$1,000,000.--Any household in which a member receives income or assets 
with a fair market value of at least $1,000,000 shall, immediately on 
the receipt of the assets, become ineligible for further participation 
in the program until the date on which the household meets the income 
eligibility and allowable financial resources standards under section 
5.''.
    (b) Conforming Amendments.--Section 5(a) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2014(a)) is amended in the second sentence by 
striking ``sections 6(b), 6(d)(2), and 6(g)'' and inserting 
``subsections (b), (d)(2), (g), and (r) of section 6''.

SEC. 6. GUARANTEE FEES.

    Subpart A of part 2 of subtitle A of title XIII of the Housing and 
Community Development Act of 1992 is amended by adding after section 
1326 (12 U.S.C. 4546) the following new section:

``SEC. 1327. ENTERPRISE GUARANTEE FEES.

    ``(a) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Guarantee fee.--The term `guarantee fee'--
                    ``(A) means a fee described in subsection (b); and
                    ``(B) includes--
                            ``(i) the guaranty fee charged by the 
                        Federal National Mortgage Association with 
                        respect to mortgage-backed securities; and
                            ``(ii) the management and guarantee fee 
                        charged by the Federal Home Loan Mortgage 
                        Corporation with respect to participation 
                        certificates.
            ``(2) Average fees.--The term `average fees' means the 
        average contractual fee rate of single-family guaranty 
        arrangements by an enterprise entered into during 2011, plus 
        the recognition of any up-front cash payments over an estimated 
        average life, expressed in terms of basis points. Such 
        definition shall be interpreted in a manner consistent with the 
        annual report on guarantee fees by the Federal Housing Finance 
        Agency.
    ``(b) Increase.--
            ``(1) In general.--
                    ``(A) Phased increase required.--Subject to 
                subsection (c), the Director shall require each 
                enterprise to charge a guarantee fee in connection with 
                any guarantee of the timely payment of principal and 
                interest on securities, notes, and other obligations 
                based on or backed by mortgages on residential real 
                properties designed principally for occupancy of from 1 
                to 4 families, consummated after the date of enactment 
                of this section.
                    ``(B) Amount.--The amount of the increase required 
                under this section shall be determined by the Director 
                to appropriately reflect the risk of loss, as well the 
                cost of capital allocated to similar assets held by 
                other fully private regulated financial institutions, 
                but such amount shall be not less than an average 
                increase of 12.5 basis points for each origination year 
                or book year above the average fees imposed in 2011 for 
                such guarantees. The Director shall prohibit an 
                enterprise from offsetting the cost of the fee to 
                mortgage originators, borrowers, and investors by 
                decreasing other charges, fees, or premiums, or in any 
                other manner.
            ``(2) Authority to limit offer of guarantee.--The Director 
        shall prohibit an enterprise from consummating any offer for a 
        guarantee to a lender for mortgage-backed securities, if--
                    ``(A) the guarantee is inconsistent with the 
                requirements of this section; or
                    ``(B) the risk of loss is allowed to increase, 
                through lowering of the underwriting standards or other 
                means, for the primary purpose of meeting the 
                requirements of this section.
            ``(3) Deposit in treasury.--Amounts received from fee 
        increases imposed under this section shall be deposited 
        directly into the United States Treasury, and shall be 
        available only to the extent provided in subsequent 
        appropriations Acts. The fees charged pursuant to this section 
        shall not be considered a reimbursement to the Federal 
        Government for the costs or subsidy provided to an enterprise.
    ``(c) Phase-in.--
            ``(1) In general.--The Director may provide for compliance 
        with subsection (b) by allowing each enterprise to increase the 
        guarantee fee charged by the enterprise gradually over the 2-
        year period beginning on the date of enactment of this section, 
        in a manner sufficient to comply with this section. In 
        determining a schedule for such increases, the Director shall--
                    ``(A) provide for uniform pricing among lenders;
                    ``(B) provide for adjustments in pricing based on 
                risk levels; and
                    ``(C) take into consideration conditions in 
                financial markets.
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be interpreted to undermine the minimum increase required 
        by subsection (b).
    ``(d) Information Collection and Annual Analysis.--The Director 
shall require each enterprise to provide to the Director, as part of 
its annual report submitted to Congress--
            ``(1) a description of--
                    ``(A) changes made to up-front fees and annual fees 
                as part of the guarantee fees negotiated with lenders;
                    ``(B) changes to the riskiness of the new borrowers 
                compared to previous origination years or book years; 
                and
                    ``(C) any adjustments required to improve for 
                future origination years or book years, in order to be 
                in complete compliance with subsection (b); and
            ``(2) an assessment of how the changes in the guarantee 
        fees described in paragraph (1) met the requirements of 
        subsection (b).
    ``(e) Enforcement.--
            ``(1) Required adjustments.--Based on the information from 
        subsection (d) and any other information the Director deems 
        necessary, the Director shall require an enterprise to make 
        adjustments in its guarantee fee in order to be in compliance 
        with subsection (b).
            ``(2) Noncompliance penalty.--An enterprise that has been 
        found to be out of compliance with subsection (b) for any 2 
        consecutive years shall be precluded from providing any 
        guarantee for a period, determined by rule of the Director, but 
        in no case less than 1 year.
            ``(3) Rule of construction.--Nothing in this subsection 
        shall be interpreted as preventing the Director from initiating 
        and implementing an enforcement action against an enterprise, 
        at a time the Director deems necessary, under other existing 
        enforcement authority.
    ``(f) Expiration.--The provisions of this section shall expire on 
October 1, 2021.''.
                                                       Calendar No. 251

112th CONGRESS

  1st Session

                                S. 1944

_______________________________________________________________________

                                 A BILL

    To create jobs by providing payroll tax relief for middle class 
            families and businesses, and for other purposes.

_______________________________________________________________________

                            December 6, 2011

            Read the second time and placed on the calendar