[Congressional Record Volume 154, Number 106 (Wednesday, June 25, 2008)]
[House]
[Pages H6031-H6044]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ALTERNATIVE MINIMUM TAX RELIEF ACT OF 2008
Mr. RANGEL. Mr. Speaker, I call up the bill (H.R. 6275) to amend the
Internal Revenue Code of 1986 to provide individuals temporary relief
from the alternative minimum tax, and for other purposes, and ask for
its immediate consideration.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 6275
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE, ETC.
(a) Short Title.--This Act may be cited as the
``Alternative Minimum Tax Relief Act of 2008''.
(b) Reference.--Except as otherwise expressly provided,
whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other
provision, the reference shall be considered to be made to a
section or other provision of the Internal Revenue Code of
1986.
(c) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title, etc.
TITLE I--INDIVIDUAL TAX RELIEF
Sec. 101. Extension of increased alternative minimum tax exemption
amount.
Sec. 102. Extension of alternative minimum tax relief for nonrefundable
personal credits.
TITLE II--REVENUE PROVISIONS
Sec. 201. Income of partners for performing investment management
services treated as ordinary income received for
performance of services.
Sec. 202. Limitation of deduction for income attributable to domestic
production of oil, gas, or primary products thereof.
Sec. 203. Limitation on treaty benefits for certain deductible
payments.
Sec. 204. Returns relating to payments made in settlement of payment
card and third party network transactions.
Sec. 205. Application of continuous levy to property sold or leased to
the Federal Government.
Sec. 206. Time for payment of corporate estimated taxes.
TITLE I--INDIVIDUAL TAX RELIEF
SEC. 101. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX
EXEMPTION AMOUNT.
(a) In General.--Paragraph (1) of section 55(d) is
amended--
(1) by striking ``($66,250 in the case of taxable years
beginning in 2007)'' in subparagraph (A) and inserting
``($69,950 in the case of taxable years beginning in 2008)'',
and
(2) by striking ``($44,350 in the case of taxable years
beginning in 2007)'' in subparagraph (B) and inserting
``($46,200 in the case of taxable years beginning in 2008)''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
SEC. 102. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR
NONREFUNDABLE PERSONAL CREDITS.
(a) In General.--Paragraph (2) of section 26(a) is
amended--
(1) by striking ``or 2007'' and inserting ``2007, or
2008'', and
(2) by striking ``2007'' in the heading thereof and
inserting ``2008''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
TITLE II--REVENUE PROVISIONS
SEC. 201. INCOME OF PARTNERS FOR PERFORMING INVESTMENT
MANAGEMENT SERVICES TREATED AS ORDINARY INCOME
RECEIVED FOR PERFORMANCE OF SERVICES.
(a) In General.--Part I of subchapter K of chapter 1 is
amended by adding at the end the following new section:
``SEC. 710. SPECIAL RULES FOR PARTNERS PROVIDING INVESTMENT
MANAGEMENT SERVICES TO PARTNERSHIP.
``(a) Treatment of Distributive Share of Partnership
Items.--For purposes of this title, in the case of an
investment services partnership interest--
``(1) In general.--Notwithstanding section 702(b)--
``(A) any net income with respect to such interest for any
partnership taxable year shall be treated as ordinary income
for the performance of services, and
``(B) any net loss with respect to such interest for such
year, to the extent not disallowed under paragraph (2) for
such year, shall be treated as an ordinary loss.
All items of income, gain, deduction, and loss which are
taken into account in computing net income or net loss shall
be treated as ordinary income or ordinary loss (as the case
may be).
``(2) Treatment of losses.--
``(A) Limitation.--Any net loss with respect to such
interest shall be allowed for any partnership taxable year
only to the extent that such loss does not exceed the excess
(if any) of--
``(i) the aggregate net income with respect to such
interest for all prior partnership taxable years, over
``(ii) the aggregate net loss with respect to such interest
not disallowed under this subparagraph for all prior
partnership taxable years.
``(B) Carryforward.--Any net loss for any partnership
taxable year which is not allowed by reason of subparagraph
(A) shall be treated as an item of loss with respect to such
partnership interest for the succeeding partnership taxable
year.
``(C) Basis adjustment.--No adjustment to the basis of a
partnership interest shall be made on account of any net loss
which is not allowed by reason of subparagraph (A).
``(D) Exception for basis attributable to purchase of a
partnership interest.--In the case of an investment services
partnership interest acquired by purchase, paragraph (1)(B)
shall not apply to so much of any net loss with respect to
such interest for any taxable year as does not exceed the
excess of--
``(i) the basis of such interest immediately after such
purchase, over
``(ii) the aggregate net loss with respect to such interest
to which paragraph (1)(B) did not apply by reason of this
subparagraph for all prior taxable years.
Any net loss to which paragraph (1)(B) does not apply by
reason of this subparagraph
[[Page H6032]]
shall not be taken into account under subparagraph (A).
``(E) Prior partnership years.--Any reference in this
paragraph to prior partnership taxable years shall only
include prior partnership taxable years to which this section
applies.
``(3) Net income and loss.--For purposes of this section--
``(A) Net income.--The term `net income' means, with
respect to any investment services partnership interest, for
any partnership taxable year, the excess (if any) of--
``(i) all items of income and gain taken into account by
the holder of such interest under section 702 with respect to
such interest for such year, over
``(ii) all items of deduction and loss so taken into
account.
``(B) Net loss.--The term `net loss' means with respect to
such interest for such year, the excess (if any) of the
amount described in subparagraph (A)(ii) over the amount
described in subparagraph (A)(i).
``(b) Dispositions of Partnership Interests.--
``(1) Gain.--Any gain on the disposition of an investment
services partnership interest shall be treated as ordinary
income for the performance of services.
``(2) Loss.--Any loss on the disposition of an investment
services partnership interest shall be treated as an ordinary
loss to the extent of the excess (if any) of--
``(A) the aggregate net income with respect to such
interest for all partnership taxable years, over
``(B) the aggregate net loss with respect to such interest
allowed under subsection (a)(2) for all partnership taxable
years.
``(3) Disposition of portion of interest.--In the case of
any disposition of an investment services partnership
interest, the amount of net loss which otherwise would have
(but for subsection (a)(2)(C)) applied to reduce the basis of
such interest shall be disregarded for purposes of this
section for all succeeding partnership taxable years.
``(4) Distributions of partnership property.--In the case
of any distribution of property by a partnership with respect
to any investment services partnership interest held by a
partner--
``(A) the excess (if any) of--
``(i) the fair market value of such property at the time of
such distribution, over
``(ii) the adjusted basis of such property in the hands of
the partnership,
shall be taken into account as an increase in such partner's
distributive share of the taxable income of the partnership
(except to the extent such excess is otherwise taken into
account in determining the taxable income of the
partnership),
``(B) such property shall be treated for purposes of
subpart B of part II as money distributed to such partner in
an amount equal to such fair market value, and
``(C) the basis of such property in the hands of such
partner shall be such fair market value.
Subsection (b) of section 734 shall be applied without regard
to the preceding sentence.
``(5) Application of section 751.--In applying section
751(a), an investment services partnership interest shall be
treated as an inventory item.
``(c) Investment Services Partnership Interest.--For
purposes of this section--
``(1) In general.--The term `investment services
partnership interest' means any interest in a partnership
which is held by any person if such person provides (directly
or indirectly) a substantial quantity of any of the following
services with respect to the assets of the partnership in the
conduct of the trade or business of providing such services:
``(A) Advising as to the advisability of investing in,
purchasing, or selling any specified asset.
``(B) Managing, acquiring, or disposing of any specified
asset.
``(C) Arranging financing with respect to acquiring
specified assets.
``(D) Any activity in support of any service described in
subparagraphs (A) through (C).
For purposes of this paragraph, the term `specified asset'
means securities (as defined in section 475(c)(2) without
regard to the last sentence thereof), real estate,
commodities (as defined in section 475(e)(2))), or options or
derivative contracts with respect to securities (as so
defined), real estate, or commodities (as so defined).
``(2) Exception for certain capital interests.--
``(A) In general.--If--
``(i) a portion of an investment services partnership
interest is acquired on account of a contribution of invested
capital, and
``(ii) the partnership makes a reasonable allocation of
partnership items between the portion of the distributive
share that is with respect to invested capital and the
portion of such distributive share that is not with respect
to invested capital,
then subsection (a) shall not apply to the portion of the
distributive share that is with respect to invested capital.
An allocation will not be treated as reasonable for purposes
of this subparagraph if such allocation would result in the
partnership allocating a greater portion of income to
invested capital than any other partner not providing
services would have been allocated with respect to the same
amount of invested capital.
``(B) Special rule for dispositions.--In any case to which
subparagraph (A) applies, subsection (b) shall not apply to
any gain or loss allocable to invested capital. The portion
of any gain or loss attributable to invested capital is the
proportion of such gain or loss which is based on the
distributive share of gain or loss that would have been
allocable to invested capital under subparagraph (A) if the
partnership sold all of its assets immediately before the
disposition.
``(C) Invested capital.--For purposes of this paragraph,
the term `invested capital' means, the fair market value at
the time of contribution of any money or other property
contributed to the partnership.
``(D) Treatment of certain loans.--
``(i) Proceeds of partnership loans not treated as invested
capital of service providing partners.--For purposes of this
paragraph, an investment services partnership interest shall
not be treated as acquired on account of a contribution of
invested capital to the extent that such capital is
attributable to the proceeds of any loan or other advance
made or guaranteed, directly or indirectly, by any partner or
the partnership.
``(ii) Loans from nonservice providing partners to the
partnership treated as invested capital.--For purposes of
this paragraph, any loan or other advance to the partnership
made or guaranteed, directly or indirectly, by a partner not
providing services to the partnership shall be treated as
invested capital of such partner and amounts of income and
loss treated as allocable to invested capital shall be
adjusted accordingly.
``(d) Other Income and Gain in Connection With Investment
Management Services.--
``(1) In general.--If--
``(A) a person performs (directly or indirectly) investment
management services for any entity,
``(B) such person holds a disqualified interest with
respect to such entity, and
``(C) the value of such interest (or payments thereunder)
is substantially related to the amount of income or gain
(whether or not realized) from the assets with respect to
which the investment management services are performed,
any income or gain with respect to such interest shall be
treated as ordinary income for the performance of services.
Rules similar to the rules of subsection (c)(2) shall apply
where such interest was acquired on account of invested
capital in such entity.
``(2) Definitions.--For purposes of this subsection--
``(A) Disqualified interest.--The term `disqualified
interest' means, with respect to any entity--
``(i) any interest in such entity other than indebtedness,
``(ii) convertible or contingent debt of such entity,
``(iii) any option or other right to acquire property
described in clause (i) or (ii), and
``(iv) any derivative instrument entered into (directly or
indirectly) with such entity or any investor in such entity.
Such term shall not include a partnership interest and shall
not include stock in a taxable corporation.
``(B) Taxable corporation.--The term `taxable corporation'
means--
``(i) a domestic C corporation, or
``(ii) a foreign corporation subject to a comprehensive
foreign income tax.
``(C) Investment management services.--The term `investment
management services' means a substantial quantity of any of
the services described in subsection (c)(1) which are
provided in the conduct of the trade or business of providing
such services.
``(D) Comprehensive foreign income tax.--The term
`comprehensive foreign income tax' means, with respect to any
foreign corporation, the income tax of a foreign country if--
``(i) such corporation is eligible for the benefits of a
comprehensive income tax treaty between such foreign country
and the United States, or
``(ii) such corporation demonstrates to the satisfaction of
the Secretary that such foreign country has a comprehensive
income tax.
``(e) Regulations.--The Secretary shall prescribe such
regulations as are necessary or appropriate to carry out the
purposes of this section, including regulations to--
``(1) prevent the avoidance of the purposes of this
section, and
``(2) coordinate this section with the other provisions of
this subchapter.
``(f) Cross Reference.--For 40 percent no fault penalty on
certain underpayments due to the avoidance of this section,
see section 6662.''.
(b) Application to Real Estate Investment Trusts.--
(1) In general.--Subsection (c) of section 856 is amended
by adding at the end the following new paragraph:
``(9) Exception from recharacterization of income from
investment services partnership interests.--
``(A) In general.--Paragraphs (2), (3), and (4) shall be
applied without regard to section 710 (relating to special
rules for partners providing investment management services
to partnership).
``(B) Special rule for partnerships owned by reits.--
Section 7704 shall be applied without regard to section 710
in the case of a partnership which meets each of the
following requirements:
``(i) Such partnership is treated as publicly traded under
section 7704 solely by reason of interests in such
partnership being convertible into interests in a real estate
investment trust which is publicly traded.
``(ii) 50 percent or more of the capital and profits
interests of such partnership are owned, directly or
indirectly, at all times during the taxable year by such real
estate
[[Page H6033]]
investment trust (determined with the application of section
267(c)).
``(iii) Such partnership meets the requirements of
paragraphs (2), (3), and (4) (applied without regard to
section 710).''.
(2) Conforming amendment.--Paragraph (4) of section 7704(d)
is amended by inserting ``(determined without regard to
section 856(c)(8))'' after ``856(c)(2)''.
(c) Imposition of Penalty on Underpayments.--
(1) In general.--Subsection (b) of section 6662 is amended
by inserting after paragraph (5) the following new paragraph:
``(6) The application of subsection (d) of section 710 or
the regulations prescribed under section 710(e) to prevent
the avoidance of the purposes of section 710.''.
(2) Amount of penalty.--
(A) In general.--Section 6662 is amended by adding at the
end the following new subsection:
``(i) Increase in Penalty in Case of Property Transferred
for Investment Management Services.--In the case of any
portion of an underpayment to which this section applies by
reason of subsection (b)(6), subsection (a) shall be applied
with respect to such portion by substituting `40 percent' for
`20 percent'.''.
(B) Conforming amendments.--Subparagraph (B) of section
6662A(e)(2) is amended--
(i) by striking ``section 6662(h)'' and inserting
``subsection (h) or (i) of section 6662'', and
(ii) by striking ``gross valuation misstatement penalty''
in the heading and inserting ``certain increased underpayment
penalties''.
(3) Reasonable cause exception not applicable.--Subsection
(c) of section 6664 is amended--
(A) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively,
(B) by striking ``paragraph (2)'' in paragraph (4), as so
redesignated, and inserting ``paragraph (3)'', and
(C) by inserting after paragraph (1) the following new
paragraph:
``(2) Exception.--Paragraph (1) shall not apply to any
portion of an underpayment to which this section applies by
reason of subsection (b)(6).''.
(d) Conforming Amendments.--
(1) Subsection (d) of section 731 is amended by inserting
``section 710(b)(4) (relating to distributions of partnership
property),'' before ``section 736''.
(2) Section 741 is amended by inserting ``or section 710
(relating to special rules for partners providing investment
management services to partnership)'' before the period at
the end.
(3) Paragraph (13) of section 1402(a) is amended--
(A) by striking ``other than guaranteed'' and inserting
``other than--
``(A) guaranteed'',
(B) by striking the semicolon at the end and inserting ``,
and'', and
(C) by adding at the end the following new subparagraph:
``(B) any income treated as ordinary income under section
710 received by an individual who provides investment
management services (as defined in section 710(d)(2));''.
(4) Paragraph (12) of section 211(a) of the Social Security
Act is amended--
(A) by striking ``other than guaranteed'' and inserting
``other than--
``(A) guaranteed'',
(B) by striking the semicolon at the end and inserting ``,
and'', and
(C) by adding at the end the following new subparagraph:
``(B) any income treated as ordinary income under section
710 of the Internal Revenue Code of 1986 received by an
individual who provides investment management services (as
defined in section 710(d)(2) of such Code);''.
(5) The table of sections for part I of subchapter K of
chapter 1 is amended by adding at the end the following new
item:
``Sec. 710. Special rules for partners providing investment management
services to partnership.''.
(e) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to taxable years ending after June 18, 2008.
(2) Partnership taxable years which include effective
date.--In applying section 710(a) of the Internal Revenue
Code of 1986 (as added by this section) in the case of any
partnership taxable year which includes June 18, 2008, the
amount of the net income referred to in such section shall be
treated as being the lesser of the net income for the entire
partnership taxable year or the net income determined by only
taking into account items attributable to the portion of the
partnership taxable year which is after such date.
(3) Dispositions of partnership interests.--Section 710(b)
of the Internal Revenue Code of 1986 (as added by this
section) shall apply to dispositions and distributions after
June 18, 2008.
(4) Other income and gain in connection with investment
management services.--Section 710(d) of such Code (as added
by this section) shall take effect on June 18, 2008.
(5) Publicly traded partnerships.--For purposes of applying
section 7704, the amendments made by this section shall apply
to taxable years beginning after December 31, 2010.
SEC. 202. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO
DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY
PRODUCTS THEREOF.
(a) Denial of Deduction for Major Integrated Oil Companies
for Income Attributable to Domestic Production of Oil, Gas,
or Primary Products Thereof.--
(1) In general.--Subparagraph (B) of section 199(c)(4)
(relating to exceptions) is amended by striking ``or'' at the
end of clause (ii), by striking the period at the end of
clause (iii) and inserting ``, or'', and by inserting after
clause (iii) the following new clause:
``(iv) in the case of any major integrated oil company (as
defined in section 167(h)(5)(B)), the production, refining,
processing, transportation, or distribution of oil, gas, or
any primary product thereof during any taxable year described
in section 167(h)(5)(B).''.
(2) Primary product.--Section 199(c)(4)(B) is amended by
adding at the end the following flush sentence:
``For purposes of clause (iv), the term `primary product' has
the same meaning as when used in section 927(a)(2)(C), as in
effect before its repeal.''.
(b) Limitation on Oil Related Qualified Production
Activities Income for Taxpayers Other Than Major Integrated
Oil Companies.--
(1) In general.--Section 199(d) is amended by redesignating
paragraph (9) as paragraph (10) and by inserting after
paragraph (8) the following new paragraph:
``(9) Special rule for taxpayers with oil related qualified
production activities income.--
``(A) In general.--If a taxpayer (other than a major
integrated oil company (as defined in section 167(h)(5)(B)))
has oil related qualified production activities income for
any taxable year beginning after 2009, the amount of the
deduction under subsection (a) shall be reduced by 3 percent
of the least of--
``(i) the oil related qualified production activities
income of the taxpayer for the taxable year,
``(ii) the qualified production activities income of the
taxpayer for the taxable year, or
``(iii) taxable income (determined without regard to this
section).
``(B) Oil related qualified production activities income.--
The term `oil related qualified production activities income'
means for any taxable year the qualified production
activities income which is attributable to the production,
refining, processing, transportation, or distribution of oil,
gas, or any primary product thereof during such taxable
year.''.
(2) Conforming amendment.--Section 199(d)(2) (relating to
application to individuals) is amended by striking
``subsection (a)(1)(B)'' and inserting ``subsections
(a)(1)(B) and (d)(9)(A)(iii)''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.
SEC. 203. LIMITATION ON TREATY BENEFITS FOR CERTAIN
DEDUCTIBLE PAYMENTS.
(a) In General.--Section 894 (relating to income affected
by treaty) is amended by adding at the end the following new
subsection:
``(d) Limitation on Treaty Benefits for Certain Deductible
Payments.--
``(1) In general.--In the case of any deductible related-
party payment, any withholding tax imposed under chapter 3
(and any tax imposed under subpart A or B of this part) with
respect to such payment may not be reduced under any treaty
of the United States unless any such withholding tax would be
reduced under a treaty of the United States if such payment
were made directly to the foreign parent corporation.
``(2) Deductible related-party payment.--For purposes of
this subsection, the term `deductible related-party payment'
means any payment made, directly or indirectly, by any person
to any other person if the payment is allowable as a
deduction under this chapter and both persons are members of
the same foreign controlled group of entities.
``(3) Foreign controlled group of entities.--For purposes
of this subsection--
``(A) In general.--The term `foreign controlled group of
entities' means a controlled group of entities the common
parent of which is a foreign corporation.
``(B) Controlled group of entities.--The term `controlled
group of entities' means a controlled group of corporations
as defined in section 1563(a)(1), except that--
``(i) `more than 50 percent' shall be substituted for `at
least 80 percent' each place it appears therein, and
``(ii) the determination shall be made without regard to
subsections (a)(4) and (b)(2) of section 1563.
A partnership or any other entity (other than a corporation)
shall be treated as a member of a controlled group of
entities if such entity is controlled (within the meaning of
section 954(d)(3)) by members of such group (including any
entity treated as a member of such group by reason of this
sentence).
``(4) Foreign parent corporation.--For purposes of this
subsection, the term `foreign parent corporation' means, with
respect to any deductible related-party payment, the common
parent of the foreign controlled group of entities referred
to in paragraph (3)(A).
``(5) Regulations.--The Secretary may prescribe such
regulations or other guidance as are necessary or appropriate
to carry out the purposes of this subsection, including
regulations or other guidance which provide for--
``(A) the treatment of two or more persons as members of a
foreign controlled group of
[[Page H6034]]
entities if such persons would be the common parent of such
group if treated as one corporation, and
``(B) the treatment of any member of a foreign controlled
group of entities as the common parent of such group if such
treatment is appropriate taking into account the economic
relationships among such entities.''.
(b) Effective Date.--The amendment made by this section
shall apply to payments made after the date of the enactment
of this Act.
SEC. 204. RETURNS RELATING TO PAYMENTS MADE IN SETTLEMENT OF
PAYMENT CARD AND THIRD PARTY NETWORK
TRANSACTIONS.
(a) In General.--Subpart B of part III of subchapter A of
chapter 61 is amended by adding at the end the following new
section:
``SEC. 6050W. RETURNS RELATING TO PAYMENTS MADE IN SETTLEMENT
OF PAYMENT CARD AND THIRD PARTY NETWORK
TRANSACTIONS.
``(a) In General.--Each payment settlement entity shall
make a return for each calendar year setting forth--
``(1) the name, address, and TIN of each participating
payee to whom one or more payments in settlement of
reportable payment transactions are made, and
``(2) the gross amount of the reportable payment
transactions with respect to each such participating payee.
Such return shall be made at such time and in such form and
manner as the Secretary may require by regulations.
``(b) Payment Settlement Entity.--For purposes of this
section--
``(1) In general.--The term `payment settlement entity'
means--
``(A) in the case of a payment card transaction, the
merchant acquiring bank, and
``(B) in the case of a third party network transaction, the
third party settlement organization.
``(2) Merchant acquiring bank.--The term `merchant
acquiring bank' means the bank or other organization which
has the contractual obligation to make payment to
participating payees in settlement of payment card
transactions.
``(3) Third party settlement organization.--The term `third
party settlement organization' means the central organization
which has the contractual obligation to make payment to
participating payees of third party network transactions.
``(4) Special rules related to intermediaries.--For
purposes of this section--
``(A) Aggregated payees.--In any case where reportable
payment transactions of more than one participating payee are
settled through an intermediary--
``(i) such intermediary shall be treated as the
participating payee for purposes of determining the reporting
obligations of the payment settlement entity with respect to
such transactions, and
``(ii) such intermediary shall be treated as the payment
settlement entity with respect to the settlement of such
transactions with the participating payees.
``(B) Electronic payment facilitators.--In any case where
an electronic payment facilitator or other third party makes
payments in settlement of reportable payment transactions on
behalf of the payment settlement entity, the return under
subsection (a) shall be made by such electronic payment
facilitator or other third party in lieu of the payment
settlement entity.
``(c) Reportable Payment Transaction.--For purposes of this
section--
``(1) In general.--The term `reportable payment
transaction' means any payment card transaction and any third
party network transaction.
``(2) Payment card transaction.--The term `payment card
transaction' means any transaction in which a payment card is
accepted as payment.
``(3) Third party network transaction.--The term `third
party network transaction' means any transaction which is
settled through a third party payment network.
``(d) Other Definitions.--For purposes of this section--
``(1) Participating payee.--
``(A) In general.--The term `participating payee' `'
means--
``(i) in the case of a payment card transaction, any person
who accepts a payment card as payment, and
``(ii) in the case of a third party network transaction,
any person who accepts payment from a third party settlement
organization in settlement of such transaction.
``(B) Exclusion of foreign persons.--Except as provided by
the Secretary in regulations or other guidance, such term
shall not include any person with a foreign address.
``(C) Inclusion of governmental units.--The term `person'
includes any governmental unit (and any agency or
instrumentality thereof).
``(2) Payment card.--The term `payment card' means any card
which is issued pursuant to an agreement or arrangement which
provides for--
``(A) one or more issuers of such cards,
``(B) a network of persons unrelated to each other, and to
the issuer, who agree to accept such cards as payment, and
``(C) standards and mechanisms for settling the
transactions between the merchant acquiring banks and the
persons who agree to accept such cards as payment.
The acceptance as payment of any account number or other
indicia associated with a payment card shall be treated for
purposes of this section in the same manner as accepting such
payment card as payment.
``(3) Third party payment network.--The term `third party
payment network' means any agreement or arrangement--
``(A) which involves the establishment of accounts with a
central organization for the purpose of settling transactions
between persons who establish such accounts,
``(B) which provides for standards and mechanisms for
settling such transactions,
``(C) which involves a substantial number of persons
unrelated to such central organization who provide goods or
services and who have agreed to settle transactions for the
provision of such goods or services pursuant to such
agreement or arrangement, and
``(D) which guarantees persons providing goods or services
pursuant to such agreement or arrangement that such persons
will be paid for providing such goods or services.
Such term shall not include any agreement or arrangement
which provides for the issuance of payment cards.
``(e) Exception for De Minimis Payments by Third Party
Settlement Organizations.--A third party settlement
organization shall be required to report any information
under subsection (a) with respect to third party network
transactions of any participating payee only if--
``(1) the amount which would otherwise be reported under
subsection (a)(2) with respect to such transactions exceeds
$10,000, and
``(2) the aggregate number of such transactions exceeds
200.
``(f) Statements To Be Furnished to Persons With Respect to
Whom Information Is Required.--Every person required to make
a return under subsection (a) shall furnish to each person
with respect to whom such a return is required a written
statement showing--
``(1) the name, address, and phone number of the
information contact of the person required to make such
return, and
``(2) the gross amount of the reportable payment
transactions with respect to the person required to be shown
on the return.
The written statement required under the preceding sentence
shall be furnished to the person on or before January 31 of
the year following the calendar year for which the return
under subsection (a) was required to be made. Such statement
may be furnished electronically.
``(g) Regulations.--The Secretary may prescribe such
regulations or other guidance as may be necessary or
appropriate to carry out this section, including rules to
prevent the reporting of the same transaction more than
once.''.
(b) Penalty for Failure To File.--
(1) Return.--Subparagraph (B) of section 6724(d)(1) is
amended--
(A) by striking ``and'' at the end of clause (xx),
(B) by redesignating the clause (xix) that follows clause
(xx) as clause (xxi),
(C) by striking ``and'' at the end of clause (xxi), as
redesignated by subparagraph (B) and inserting ``or'', and
(D) by adding at the end the following:
``(xxii) section 6050W (relating to returns to payments
made in settlement of payment card transactions), and''.
(2) Statement.--Paragraph (2) of section 6724(d) is amended
by inserting a comma at the end of subparagraph (BB), by
striking the period at the end of the subparagraph (CC) and
inserting ``, or'', and by inserting after subparagraph (CC)
the following:
``(DD) section 6050W(c) (relating to returns relating to
payments made in settlement of payment card transactions).''.
(c) Application of Backup Withholding.--Paragraph (3) of
section 3406(b) is amended by striking ``or'' at the end of
subparagraph (D), by striking the period at the end of
subparagraph (E) and inserting ``, or'', and by adding at the
end the following new subparagraph:
``(F) section 6050W (relating to returns relating to
payments made in settlement of payment card transactions).''.
(d) Clerical Amendment.--The table of sections for subpart
B of part III of subchapter A of chapter 61 is amended by
inserting after the item relating to section 6050V the
following:
``Sec. 6050W. Returns relating to payments made in settlement of
payment card and third party network transactions.''.
(e) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to returns for calendar years beginning after December 31,
2010.
(2) Application of backup withholding.--
(A) In general.--The amendment made by subsection (c) shall
apply to amounts paid after December 31, 2011.
(B) Eligibility for tin matching program.--Solely for
purposes of carrying out any TIN matching program established
by the Secretary under section 3406(i) of the Internal
Revenue Code of 1986--
(i) the amendments made this section shall be treated as
taking effect on the date of the enactment of this Act, and
(ii) each person responsible for setting the standards and
mechanisms referred to in section 6050W(d)(2)(C) of such
Code, as added by this section, for settling transactions
involving payment cards shall be treated in the same manner
as a payment settlement entity.
SEC. 205. APPLICATION OF CONTINUOUS LEVY TO PROPERTY SOLD OR
LEASED TO THE FEDERAL GOVERNMENT.
(a) In General.--Paragraph (3) of section 6331(h) is
amended by striking ``goods'' and inserting ``property''.
[[Page H6035]]
(b) Effective Date.--The amendment made by this section
shall apply to levies approved after the date of the
enactment of this Act.
SEC. 206. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
(a) Repeal of Adjustment for 2012.--Subparagraph (B) of
section 401(1) of the Tax Increase Prevention and
Reconciliation Act of 2005 is amended by striking the
percentage contained therein and inserting ``100 percent''.
(b) Modification of Adjustment for 2013.--The percentage
under subparagraph (C) of section 401(1) of the Tax Increase
Prevention and Reconciliation Act of 2005 in effect on the
date of the enactment of this Act is increased by 59.5
percentage points.
The SPEAKER pro tempore. Pursuant to House Resolution 1297, the
amendment in the nature of a substitute printed in the bill is adopted
and the bill, as amended, is considered read.
The text of the bill, as amended, is as follows:
H.R. 6275
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE, ETC.
(a) Short Title.--This Act may be cited as the
``Alternative Minimum Tax Relief Act of 2008''.
(b) Reference.--Except as otherwise expressly provided,
whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other
provision, the reference shall be considered to be made to a
section or other provision of the Internal Revenue Code of
1986.
(c) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title, etc.
TITLE I--INDIVIDUAL TAX RELIEF
Sec. 101. Extension of increased alternative minimum tax exemption
amount.
Sec. 102. Extension of alternative minimum tax relief for nonrefundable
personal credits.
TITLE II--REVENUE PROVISIONS
Sec. 201. Income of partners for performing investment management
services treated as ordinary income received for
performance of services.
Sec. 202. Limitation of deduction for income attributable to domestic
production of oil, gas, or primary products thereof.
Sec. 203. Limitation on treaty benefits for certain deductible
payments.
Sec. 204. Returns relating to payments made in settlement of payment
card and third party network transactions.
Sec. 205. Application of continuous levy to property sold or leased to
the Federal Government.
Sec. 206. Time for payment of corporate estimated taxes.
TITLE I--INDIVIDUAL TAX RELIEF
SEC. 101. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX
EXEMPTION AMOUNT.
(a) In General.--Paragraph (1) of section 55(d) is
amended--
(1) by striking ``($66,250 in the case of taxable years
beginning in 2007)'' in subparagraph (A) and inserting
``($69,950 in the case of taxable years beginning in 2008)'',
and
(2) by striking ``($44,350 in the case of taxable years
beginning in 2007)'' in subparagraph (B) and inserting
``($46,200 in the case of taxable years beginning in 2008)''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
SEC. 102. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR
NONREFUNDABLE PERSONAL CREDITS.
(a) In General.--Paragraph (2) of section 26(a) is
amended--
(1) by striking ``or 2007'' and inserting ``2007, or
2008'', and
(2) by striking ``2007'' in the heading thereof and
inserting ``2008''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
TITLE II--REVENUE PROVISIONS
SEC. 201. INCOME OF PARTNERS FOR PERFORMING INVESTMENT
MANAGEMENT SERVICES TREATED AS ORDINARY INCOME
RECEIVED FOR PERFORMANCE OF SERVICES.
(a) In General.--Part I of subchapter K of chapter 1 is
amended by adding at the end the following new section:
``SEC. 710. SPECIAL RULES FOR PARTNERS PROVIDING INVESTMENT
MANAGEMENT SERVICES TO PARTNERSHIP.
``(a) Treatment of Distributive Share of Partnership
Items.--For purposes of this title, in the case of an
investment services partnership interest--
``(1) In general.--Notwithstanding section 702(b)--
``(A) any net income with respect to such interest for any
partnership taxable year shall be treated as ordinary income
for the performance of services, and
``(B) any net loss with respect to such interest for such
year, to the extent not disallowed under paragraph (2) for
such year, shall be treated as an ordinary loss.
All items of income, gain, deduction, and loss which are
taken into account in computing net income or net loss shall
be treated as ordinary income or ordinary loss (as the case
may be).
``(2) Treatment of losses.--
``(A) Limitation.--Any net loss with respect to such
interest shall be allowed for any partnership taxable year
only to the extent that such loss does not exceed the excess
(if any) of--
``(i) the aggregate net income with respect to such
interest for all prior partnership taxable years, over
``(ii) the aggregate net loss with respect to such interest
not disallowed under this subparagraph for all prior
partnership taxable years.
``(B) Carryforward.--Any net loss for any partnership
taxable year which is not allowed by reason of subparagraph
(A) shall be treated as an item of loss with respect to such
partnership interest for the succeeding partnership taxable
year.
``(C) Basis adjustment.--No adjustment to the basis of a
partnership interest shall be made on account of any net loss
which is not allowed by reason of subparagraph (A).
``(D) Exception for basis attributable to purchase of a
partnership interest.--In the case of an investment services
partnership interest acquired by purchase, paragraph (1)(B)
shall not apply to so much of any net loss with respect to
such interest for any taxable year as does not exceed the
excess of--
``(i) the basis of such interest immediately after such
purchase, over
``(ii) the aggregate net loss with respect to such interest
to which paragraph (1)(B) did not apply by reason of this
subparagraph for all prior taxable years.
Any net loss to which paragraph (1)(B) does not apply by
reason of this subparagraph shall not be taken into account
under subparagraph (A).
``(E) Prior partnership years.--Any reference in this
paragraph to prior partnership taxable years shall only
include prior partnership taxable years to which this section
applies.
``(3) Net income and loss.--For purposes of this section--
``(A) Net income.--The term `net income' means, with
respect to any investment services partnership interest, for
any partnership taxable year, the excess (if any) of--
``(i) all items of income and gain taken into account by
the holder of such interest under section 702 with respect to
such interest for such year, over
``(ii) all items of deduction and loss so taken into
account.
``(B) Net loss.--The term `net loss' means with respect to
such interest for such year, the excess (if any) of the
amount described in subparagraph (A)(ii) over the amount
described in subparagraph (A)(i).
``(b) Dispositions of Partnership Interests.--
``(1) Gain.--Any gain on the disposition of an investment
services partnership interest shall be treated as ordinary
income for the performance of services.
``(2) Loss.--Any loss on the disposition of an investment
services partnership interest shall be treated as an ordinary
loss to the extent of the excess (if any) of--
``(A) the aggregate net income with respect to such
interest for all partnership taxable years, over
``(B) the aggregate net loss with respect to such interest
allowed under subsection (a)(2) for all partnership taxable
years.
``(3) Disposition of portion of interest.--In the case of
any disposition of an investment services partnership
interest, the amount of net loss which otherwise would have
(but for subsection (a)(2)(C)) applied to reduce the basis of
such interest shall be disregarded for purposes of this
section for all succeeding partnership taxable years.
``(4) Distributions of partnership property.--In the case
of any distribution of property by a partnership with respect
to any investment services partnership interest held by a
partner--
``(A) the excess (if any) of--
``(i) the fair market value of such property at the time of
such distribution, over
``(ii) the adjusted basis of such property in the hands of
the partnership,
shall be taken into account as an increase in such partner's
distributive share of the taxable income of the partnership
(except to the extent such excess is otherwise taken into
account in determining the taxable income of the
partnership),
``(B) such property shall be treated for purposes of
subpart B of part II as money distributed to such partner in
an amount equal to such fair market value, and
``(C) the basis of such property in the hands of such
partner shall be such fair market value.
Subsection (b) of section 734 shall be applied without regard
to the preceding sentence.
``(5) Application of section 751.--In applying section
751(a), an investment services partnership interest shall be
treated as an inventory item.
``(c) Investment Services Partnership Interest.--For
purposes of this section--
``(1) In general.--The term `investment services
partnership interest' means any interest in a partnership
which is held by any person if such person provides (directly
or indirectly) a substantial quantity of any of the following
services with respect to the assets of the partnership in the
conduct of the trade or business of providing such services:
``(A) Advising as to the advisability of investing in,
purchasing, or selling any specified asset.
``(B) Managing, acquiring, or disposing of any specified
asset.
``(C) Arranging financing with respect to acquiring
specified assets.
``(D) Any activity in support of any service described in
subparagraphs (A) through (C).
For purposes of this paragraph, the term `specified asset'
means securities (as defined in section 475(c)(2) without
regard to the last sentence thereof), real estate,
commodities (as defined in section 475(e)(2))), or options or
derivative contracts with respect to securities (as so
defined), real estate, or commodities (as so defined).
[[Page H6036]]
``(2) Exception for certain capital interests.--
``(A) In general.--If--
``(i) a portion of an investment services partnership
interest is acquired on account of a contribution of invested
capital, and
``(ii) the partnership makes a reasonable allocation of
partnership items between the portion of the distributive
share that is with respect to invested capital and the
portion of such distributive share that is not with respect
to invested capital,
then subsection (a) shall not apply to the portion of the
distributive share that is with respect to invested capital.
An allocation will not be treated as reasonable for purposes
of this subparagraph if such allocation would result in the
partnership allocating a greater portion of income to
invested capital than any other partner not providing
services would have been allocated with respect to the same
amount of invested capital.
``(B) Special rule for dispositions.--In any case to which
subparagraph (A) applies, subsection (b) shall not apply to
any gain or loss allocable to invested capital. The portion
of any gain or loss attributable to invested capital is the
proportion of such gain or loss which is based on the
distributive share of gain or loss that would have been
allocable to invested capital under subparagraph (A) if the
partnership sold all of its assets immediately before the
disposition.
``(C) Invested capital.--For purposes of this paragraph,
the term `invested capital' means, the fair market value at
the time of contribution of any money or other property
contributed to the partnership.
``(D) Treatment of certain loans.--
``(i) Proceeds of partnership loans not treated as invested
capital of service providing partners.--For purposes of this
paragraph, an investment services partnership interest shall
not be treated as acquired on account of a contribution of
invested capital to the extent that such capital is
attributable to the proceeds of any loan or other advance
made or guaranteed, directly or indirectly, by any partner or
the partnership.
``(ii) Loans from nonservice providing partners to the
partnership treated as invested capital.--For purposes of
this paragraph, any loan or other advance to the partnership
made or guaranteed, directly or indirectly, by a partner not
providing services to the partnership shall be treated as
invested capital of such partner and amounts of income and
loss treated as allocable to invested capital shall be
adjusted accordingly.
``(d) Other Income and Gain in Connection With Investment
Management Services.--
``(1) In general.--If--
``(A) a person performs (directly or indirectly) investment
management services for any entity,
``(B) such person holds a disqualified interest with
respect to such entity, and
``(C) the value of such interest (or payments thereunder)
is substantially related to the amount of income or gain
(whether or not realized) from the assets with respect to
which the investment management services are performed,
any income or gain with respect to such interest shall be
treated as ordinary income for the performance of services.
Rules similar to the rules of subsection (c)(2) shall apply
where such interest was acquired on account of invested
capital in such entity.
``(2) Definitions.--For purposes of this subsection--
``(A) Disqualified interest.--The term `disqualified
interest' means, with respect to any entity--
``(i) any interest in such entity other than indebtedness,
``(ii) convertible or contingent debt of such entity,
``(iii) any option or other right to acquire property
described in clause (i) or (ii), and
``(iv) any derivative instrument entered into (directly or
indirectly) with such entity or any investor in such entity.
Such term shall not include a partnership interest and shall
not include stock in a taxable corporation.
``(B) Taxable corporation.--The term `taxable corporation'
means--
``(i) a domestic C corporation, or
``(ii) a foreign corporation subject to a comprehensive
foreign income tax.
``(C) Investment management services.--The term `investment
management services' means a substantial quantity of any of
the services described in subsection (c)(1) which are
provided in the conduct of the trade or business of providing
such services.
``(D) Comprehensive foreign income tax.--The term
`comprehensive foreign income tax' means, with respect to any
foreign corporation, the income tax of a foreign country if--
``(i) such corporation is eligible for the benefits of a
comprehensive income tax treaty between such foreign country
and the United States, or
``(ii) such corporation demonstrates to the satisfaction of
the Secretary that such foreign country has a comprehensive
income tax.
``(e) Regulations.--The Secretary shall prescribe such
regulations as are necessary or appropriate to carry out the
purposes of this section, including regulations to--
``(1) prevent the avoidance of the purposes of this
section, and
``(2) coordinate this section with the other provisions of
this subchapter.
``(f) Cross Reference.--For 40 percent no fault penalty on
certain underpayments due to the avoidance of this section,
see section 6662.''.
(b) Application to Real Estate Investment Trusts.--
(1) In general.--Subsection (c) of section 856 is amended
by adding at the end the following new paragraph:
``(9) Exception from recharacterization of income from
investment services partnership interests.--
``(A) In general.--Paragraphs (2), (3), and (4) shall be
applied without regard to section 710 (relating to special
rules for partners providing investment management services
to partnership).
``(B) Special rule for partnerships owned by reits.--
Section 7704 shall be applied without regard to section 710
in the case of a partnership which meets each of the
following requirements:
``(i) Such partnership is treated as publicly traded under
section 7704 solely by reason of interests in such
partnership being convertible into interests in a real estate
investment trust which is publicly traded.
``(ii) 50 percent or more of the capital and profits
interests of such partnership are owned, directly or
indirectly, at all times during the taxable year by such real
estate investment trust (determined with the application of
section 267(c)).
``(iii) Such partnership meets the requirements of
paragraphs (2), (3), and (4) (applied without regard to
section 710).''.
(2) Conforming amendment.--Paragraph (4) of section 7704(d)
is amended by inserting ``(determined without regard to
section 856(c)(8))'' after ``856(c)(2)''.
(c) Imposition of Penalty on Underpayments.--
(1) In general.--Subsection (b) of section 6662 is amended
by inserting after paragraph (5) the following new paragraph:
``(6) The application of subsection (d) of section 710 or
the regulations prescribed under section 710(e) to prevent
the avoidance of the purposes of section 710.''.
(2) Amount of penalty.--
(A) In general.--Section 6662 is amended by adding at the
end the following new subsection:
``(i) Increase in Penalty in Case of Property Transferred
for Investment Management Services.--In the case of any
portion of an underpayment to which this section applies by
reason of subsection (b)(6), subsection (a) shall be applied
with respect to such portion by substituting `40 percent' for
`20 percent'.''.
(B) Conforming amendments.--Subparagraph (B) of section
6662A(e)(2) is amended--
(i) by striking ``section 6662(h)'' and inserting
``subsection (h) or (i) of section 6662'', and
(ii) by striking ``gross valuation misstatement penalty''
in the heading and inserting ``certain increased underpayment
penalties''.
(3) Reasonable cause exception not applicable.--Subsection
(c) of section 6664 is amended--
(A) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively,
(B) by striking ``paragraph (2)'' in paragraph (4), as so
redesignated, and inserting ``paragraph (3)'', and
(C) by inserting after paragraph (1) the following new
paragraph:
``(2) Exception.--Paragraph (1) shall not apply to any
portion of an underpayment to which this section applies by
reason of subsection (b)(6).''.
(d) Conforming Amendments.--
(1) Subsection (d) of section 731 is amended by inserting
``section 710(b)(4) (relating to distributions of partnership
property),'' before ``section 736''.
(2) Section 741 is amended by inserting ``or section 710
(relating to special rules for partners providing investment
management services to partnership)'' before the period at
the end.
(3) Paragraph (13) of section 1402(a) is amended--
(A) by striking ``other than guaranteed'' and inserting
``other than--
``(A) guaranteed'',
(B) by striking the semicolon at the end and inserting ``,
and'', and
(C) by adding at the end the following new subparagraph:
``(B) any income treated as ordinary income under section
710 received by an individual who provides investment
management services (as defined in section 710(d)(2));''.
(4) Paragraph (12) of section 211(a) of the Social Security
Act is amended--
(A) by striking ``other than guaranteed'' and inserting
``other than--
``(A) guaranteed'',
(B) by striking the semicolon at the end and inserting ``,
and'', and
(C) by adding at the end the following new subparagraph:
``(B) any income treated as ordinary income under section
710 of the Internal Revenue Code of 1986 received by an
individual who provides investment management services (as
defined in section 710(d)(2) of such Code);''.
(5) The table of sections for part I of subchapter K of
chapter 1 is amended by adding at the end the following new
item:
``Sec. 710. Special rules for partners providing investment management
services to partnership.''.
(e) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to taxable years ending after June 18, 2008.
(2) Partnership taxable years which include effective
date.--In applying section 710(a) of the Internal Revenue
Code of 1986 (as added by this section) in the case of any
partnership taxable year which includes June 18, 2008, the
amount of the net income referred to in such section shall be
treated as being the lesser of the net income for the entire
partnership taxable year or the net income determined by only
taking into account items attributable to the portion of the
partnership taxable year which is after such date.
(3) Dispositions of partnership interests.--Section 710(b)
of the Internal Revenue Code of
[[Page H6037]]
1986 (as added by this section) shall apply to dispositions
and distributions after June 18, 2008.
(4) Other income and gain in connection with investment
management services.--Section 710(d) of such Code (as added
by this section) shall take effect on June 18, 2008.
(5) Publicly traded partnerships.--For purposes of applying
section 7704, the amendments made by this section shall apply
to taxable years beginning after December 31, 2010.
SEC. 202. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO
DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY
PRODUCTS THEREOF.
(a) Denial of Deduction for Major Integrated Oil Companies
for Income Attributable to Domestic Production of Oil, Gas,
or Primary Products Thereof.--
(1) In general.--Subparagraph (B) of section 199(c)(4)
(relating to exceptions) is amended by striking ``or'' at the
end of clause (ii), by striking the period at the end of
clause (iii) and inserting ``, or'', and by inserting after
clause (iii) the following new clause:
``(iv) in the case of any major integrated oil company (as
defined in section 167(h)(5)(B)), the production, refining,
processing, transportation, or distribution of oil, gas, or
any primary product thereof during any taxable year described
in section 167(h)(5)(B).''.
(2) Primary product.--Section 199(c)(4)(B) is amended by
adding at the end the following flush sentence:
``For purposes of clause (iv), the term `primary product' has
the same meaning as when used in section 927(a)(2)(C), as in
effect before its repeal.''.
(b) Limitation on Oil Related Qualified Production
Activities Income for Taxpayers Other Than Major Integrated
Oil Companies.--
(1) In general.--Section 199(d) is amended by redesignating
paragraph (9) as paragraph (10) and by inserting after
paragraph (8) the following new paragraph:
``(9) Special rule for taxpayers with oil related qualified
production activities income.--
``(A) In general.--If a taxpayer (other than a major
integrated oil company (as defined in section 167(h)(5)(B)))
has oil related qualified production activities income for
any taxable year beginning after 2009, the amount of the
deduction under subsection (a) shall be reduced by 3 percent
of the least of--
``(i) the oil related qualified production activities
income of the taxpayer for the taxable year,
``(ii) the qualified production activities income of the
taxpayer for the taxable year, or
``(iii) taxable income (determined without regard to this
section).
``(B) Oil related qualified production activities income.--
The term `oil related qualified production activities income'
means for any taxable year the qualified production
activities income which is attributable to the production,
refining, processing, transportation, or distribution of oil,
gas, or any primary product thereof during such taxable
year.''.
(2) Conforming amendment.--Section 199(d)(2) (relating to
application to individuals) is amended by striking
``subsection (a)(1)(B)'' and inserting ``subsections
(a)(1)(B) and (d)(9)(A)(iii)''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.
SEC. 203. LIMITATION ON TREATY BENEFITS FOR CERTAIN
DEDUCTIBLE PAYMENTS.
(a) In General.--Section 894 (relating to income affected
by treaty) is amended by adding at the end the following new
subsection:
``(d) Limitation on Treaty Benefits for Certain Deductible
Payments.--
``(1) In general.--In the case of any deductible related-
party payment, any withholding tax imposed under chapter 3
(and any tax imposed under subpart A or B of this part) with
respect to such payment may not be reduced under any treaty
of the United States unless any such withholding tax would be
reduced under a treaty of the United States if such payment
were made directly to the foreign parent corporation.
``(2) Deductible related-party payment.--For purposes of
this subsection, the term `deductible related-party payment'
means any payment made, directly or indirectly, by any person
to any other person if the payment is allowable as a
deduction under this chapter and both persons are members of
the same foreign controlled group of entities.
``(3) Foreign controlled group of entities.--For purposes
of this subsection--
``(A) In general.--The term `foreign controlled group of
entities' means a controlled group of entities the common
parent of which is a foreign corporation.
``(B) Controlled group of entities.--The term `controlled
group of entities' means a controlled group of corporations
as defined in section 1563(a)(1), except that--
``(i) `more than 50 percent' shall be substituted for `at
least 80 percent' each place it appears therein, and
``(ii) the determination shall be made without regard to
subsections (a)(4) and (b)(2) of section 1563.
A partnership or any other entity (other than a corporation)
shall be treated as a member of a controlled group of
entities if such entity is controlled (within the meaning of
section 954(d)(3)) by members of such group (including any
entity treated as a member of such group by reason of this
sentence).
``(4) Foreign parent corporation.--For purposes of this
subsection, the term `foreign parent corporation' means, with
respect to any deductible related-party payment, the common
parent of the foreign controlled group of entities referred
to in paragraph (3)(A).
``(5) Regulations.--The Secretary may prescribe such
regulations or other guidance as are necessary or appropriate
to carry out the purposes of this subsection, including
regulations or other guidance which provide for--
``(A) the treatment of two or more persons as members of a
foreign controlled group of entities if such persons would be
the common parent of such group if treated as one
corporation, and
``(B) the treatment of any member of a foreign controlled
group of entities as the common parent of such group if such
treatment is appropriate taking into account the economic
relationships among such entities.''.
(b) Effective Date.--The amendment made by this section
shall apply to payments made after the date of the enactment
of this Act.
SEC. 204. RETURNS RELATING TO PAYMENTS MADE IN SETTLEMENT OF
PAYMENT CARD AND THIRD PARTY NETWORK
TRANSACTIONS.
(a) In General.--Subpart B of part III of subchapter A of
chapter 61 is amended by adding at the end the following new
section:
``SEC. 6050W. RETURNS RELATING TO PAYMENTS MADE IN SETTLEMENT
OF PAYMENT CARD AND THIRD PARTY NETWORK
TRANSACTIONS.
``(a) In General.--Each payment settlement entity shall
make a return for each calendar year setting forth--
``(1) the name, address, and TIN of each participating
payee to whom one or more payments in settlement of
reportable payment transactions are made, and
``(2) the gross amount of the reportable payment
transactions with respect to each such participating payee.
Such return shall be made at such time and in such form and
manner as the Secretary may require by regulations.
``(b) Payment Settlement Entity.--For purposes of this
section--
``(1) In general.--The term `payment settlement entity'
means--
``(A) in the case of a payment card transaction, the
merchant acquiring bank, and
``(B) in the case of a third party network transaction, the
third party settlement organization.
``(2) Merchant acquiring bank.--The term `merchant
acquiring bank' means the bank or other organization which
has the contractual obligation to make payment to
participating payees in settlement of payment card
transactions.
``(3) Third party settlement organization.--The term `third
party settlement organization' means the central organization
which has the contractual obligation to make payment to
participating payees of third party network transactions.
``(4) Special rules related to intermediaries.--For
purposes of this section--
``(A) Aggregated payees.--In any case where reportable
payment transactions of more than one participating payee are
settled through an intermediary--
``(i) such intermediary shall be treated as the
participating payee for purposes of determining the reporting
obligations of the payment settlement entity with respect to
such transactions, and
``(ii) such intermediary shall be treated as the payment
settlement entity with respect to the settlement of such
transactions with the participating payees.
``(B) Electronic payment facilitators.--In any case where
an electronic payment facilitator or other third party makes
payments in settlement of reportable payment transactions on
behalf of the payment settlement entity, the return under
subsection (a) shall be made by such electronic payment
facilitator or other third party in lieu of the payment
settlement entity.
``(c) Reportable Payment Transaction.--For purposes of this
section--
``(1) In general.--The term `reportable payment
transaction' means any payment card transaction and any third
party network transaction.
``(2) Payment card transaction.--The term `payment card
transaction' means any transaction in which a payment card is
accepted as payment.
``(3) Third party network transaction.--The term `third
party network transaction' means any transaction which is
settled through a third party payment network.
``(d) Other Definitions.--For purposes of this section--
``(1) Participating payee.--
``(A) In general.--The term `participating payee' `'
means--
``(i) in the case of a payment card transaction, any person
who accepts a payment card as payment, and
``(ii) in the case of a third party network transaction,
any person who accepts payment from a third party settlement
organization in settlement of such transaction.
``(B) Exclusion of foreign persons.--Except as provided by
the Secretary in regulations or other guidance, such term
shall not include any person with a foreign address.
``(C) Inclusion of governmental units.--The term `person'
includes any governmental unit (and any agency or
instrumentality thereof).
``(2) Payment card.--The term `payment card' means any card
which is issued pursuant to an agreement or arrangement which
provides for--
``(A) one or more issuers of such cards,
``(B) a network of persons unrelated to each other, and to
the issuer, who agree to accept such cards as payment, and
``(C) standards and mechanisms for settling the
transactions between the merchant acquiring banks and the
persons who agree to accept such cards as payment.
The acceptance as payment of any account number or other
indicia associated with a payment card shall be treated for
purposes of this
[[Page H6038]]
section in the same manner as accepting such payment card as
payment.
``(3) Third party payment network.--The term `third party
payment network' means any agreement or arrangement--
``(A) which involves the establishment of accounts with a
central organization for the purpose of settling transactions
between persons who establish such accounts,
``(B) which provides for standards and mechanisms for
settling such transactions,
``(C) which involves a substantial number of persons
unrelated to such central organization who provide goods or
services and who have agreed to settle transactions for the
provision of such goods or services pursuant to such
agreement or arrangement, and
``(D) which guarantees persons providing goods or services
pursuant to such agreement or arrangement that such persons
will be paid for providing such goods or services.
Such term shall not include any agreement or arrangement
which provides for the issuance of payment cards.
``(e) Exception for De Minimis Payments by Third Party
Settlement Organizations.--A third party settlement
organization shall be required to report any information
under subsection (a) with respect to third party network
transactions of any participating payee only if--
``(1) the amount which would otherwise be reported under
subsection (a)(2) with respect to such transactions exceeds
$10,000, and
``(2) the aggregate number of such transactions exceeds
200.
``(f) Statements To Be Furnished to Persons With Respect to
Whom Information Is Required.--Every person required to make
a return under subsection (a) shall furnish to each person
with respect to whom such a return is required a written
statement showing--
``(1) the name, address, and phone number of the
information contact of the person required to make such
return, and
``(2) the gross amount of the reportable payment
transactions with respect to the person required to be shown
on the return.
The written statement required under the preceding sentence
shall be furnished to the person on or before January 31 of
the year following the calendar year for which the return
under subsection (a) was required to be made. Such statement
may be furnished electronically.
``(g) Regulations.--The Secretary may prescribe such
regulations or other guidance as may be necessary or
appropriate to carry out this section, including rules to
prevent the reporting of the same transaction more than
once.''.
(b) Penalty for Failure To File.--
(1) Return.--Subparagraph (B) of section 6724(d)(1) is
amended--
(A) by striking ``and'' at the end of clause (xx),
(B) by redesignating the clause (xix) that follows clause
(xx) as clause (xxi),
(C) by striking ``and'' at the end of clause (xxi), as
redesignated by subparagraph (B) and inserting ``or'', and
(D) by adding at the end the following:
``(xxii) section 6050W (relating to returns to payments
made in settlement of payment card transactions), and''.
(2) Statement.--Paragraph (2) of section 6724(d) is amended
by inserting a comma at the end of subparagraph (BB), by
striking the period at the end of the subparagraph (CC) and
inserting ``, or'', and by inserting after subparagraph (CC)
the following:
``(DD) section 6050W(c) (relating to returns relating to
payments made in settlement of payment card transactions).''.
(c) Application of Backup Withholding.--Paragraph (3) of
section 3406(b) is amended by striking ``or'' at the end of
subparagraph (D), by striking the period at the end of
subparagraph (E) and inserting ``, or'', and by adding at the
end the following new subparagraph:
``(F) section 6050W (relating to returns relating to
payments made in settlement of payment card transactions).''.
(d) Clerical Amendment.--The table of sections for subpart
B of part III of subchapter A of chapter 61 is amended by
inserting after the item relating to section 6050V the
following:
``Sec. 6050W. Returns relating to payments made in settlement of
payment card and third party network transactions.''.
(e) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to returns for calendar years beginning after December 31,
2010.
(2) Application of backup withholding.--
(A) In general.--The amendment made by subsection (c) shall
apply to amounts paid after December 31, 2011.
(B) Eligibility for tin matching program.--Solely for
purposes of carrying out any TIN matching program established
by the Secretary under section 3406(i) of the Internal
Revenue Code of 1986--
(i) the amendments made this section shall be treated as
taking effect on the date of the enactment of this Act, and
(ii) each person responsible for setting the standards and
mechanisms referred to in section 6050W(d)(2)(C) of such
Code, as added by this section, for settling transactions
involving payment cards shall be treated in the same manner
as a payment settlement entity.
SEC. 205. APPLICATION OF CONTINUOUS LEVY TO PROPERTY SOLD OR
LEASED TO THE FEDERAL GOVERNMENT.
(a) In General.--Paragraph (3) of section 6331(h) is
amended by striking ``goods'' and inserting ``property''.
(b) Effective Date.--The amendment made by this section
shall apply to levies approved after the date of the
enactment of this Act.
SEC. 206. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
(a) Repeal of Adjustment for 2012.--Subparagraph (B) of
section 401(1) of the Tax Increase Prevention and
Reconciliation Act of 2005 is amended by striking the
percentage contained therein and inserting ``100 percent''.
(b) Modification of Adjustment for 2013.--The percentage
under subparagraph (C) of section 401(1) of the Tax Increase
Prevention and Reconciliation Act of 2005 in effect on the
date of the enactment of this Act is increased by 59.5
percentage points.
The SPEAKER pro tempore. The gentleman from New York (Mr. Rangel) and
the gentleman from Louisiana (Mr. McCrery) each will control 30
minutes.
The Chair recognizes the gentleman from New York.
{time} 1315
Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, some time ago, in an effort to make certain that 159
taxpayers who are very wealthy had some tax liability, the Congress at
that time passed the alternative minimum tax. What they neglected to do
was to index the tax structure for inflation, and as a result we find
people making 30, 40, $50,000 caught up as though they were wealthy
taxpayers trying to avoid or evade their tax liability.
Now, the President should know, as other Presidents, that this is a
very, very unfair tax. The truth of the matter is it should not even be
in this structure. But in the close to 7 years that the President has
been in office, he has not seen fit to give us a tax reform bill so
that we can do what everyone in this House would want done, and that is
to eliminate this fiscal threat from now some 25 million taxpayers.
So what do we have to do? Every year we have to come down and so-
called ``patch it'' because, politically speaking, no one is going to
go home and say that they did nothing about it.
So what is the difference between what we want to do in the majority
and the other side? Well, if you listen carefully, you would see that
the President has put this AMT in every budget except the one we have
this year, which means that in the budget he never intends to remove it
or have it removed. What does putting it in the budget mean? It means
that you expect the money that would be coming from the alternative
minimum tax to be there to spend. I can understand that, except that
Congress says that we're not going to collect that money. So what we
would believe is that if we're taking $61 billion out of the economy
that we shouldn't go to China and Japan and ask them once again to bail
us out but we should take a look at the Tax Code and to find out just
what things in the Tax Code, what preferential treatment, what
loopholes are there so that when we repair the AMT, at least for this
year, we will be able to say we didn't borrow the money and we didn't
put this burden on our children and our grandchildren.
So the four areas that we concentrated on to raise the money to get
this bill passed is the carried interest. What is that? All it says is
that if two groups of people, one a corporation and the other a
partnership, are managing someone else's money and if, indeed, they
don't put their own money in it, that the tax rate should be 35
percent. Somehow a group has manipulated the system, made themselves a
partnership, said they didn't put in their own money, but they still
consider it a capital investment, and they are now taxed at the rate of
15 percent. We think it's unequal, it's wrong, and we correct it.
The other area that we have a concern about is people who use tax
havens for money earned in the United States to avoid taxes. They put
it overseas. In the area of credit cards, we have the major credit card
holders that reimburse vendors, and all we ask the vendors to do is to
report the money they've had for reimbursement. And then, of course, we
have our oil industry that received tax credits that they were not
entitled to, and certainly at the obscene profits they're making, I
hate to believe that someone believes that the government should
further subsidize the moneys that they're making.
So, Mr. Speaker, it's going to be interesting to see how the other
side explains as to why they don't have to pay for this. Certainly, if
indeed we do nothing, $61 billion of tax burden is going to fall on 25
million good American taxpayers, and we want to fill that
[[Page H6039]]
gap of the $61 billion. The other side says it doesn't exist, and so I
can't wait to sit down so I can listen to their very interesting
argument.
Mr. Speaker, I reserve the balance of my time.
Mr. McCRERY. Mr. Speaker, I yield myself such time as I may consume.
Today's bill, Mr. Speaker, represents a clear difference between the
two parties in the House when it comes to tax policy. Republicans
believe that Congress should not raise taxes on one group of taxpayers
in order to prevent a tax increase on another set of taxpayers. To say
that another way, we don't believe we ought to have to raise taxes to
preserve something that's already in the Tax Code.
Now, we are certainly for continuing to patch the alternative minimum
tax. That's been the practice for the last several years. The
President, in his budget for the last several years, has had an AMT
patch in his budget without increasing taxes on somebody else. So we
are certainly for that. But we are not for imposing a tax increase in a
like amount on another set of taxpayers. That just doesn't make sense
to us.
Without this patch, another 21 million families would come under the
AMT, and their average tax increase would be about $2,400 per taxpayer.
So we certainly want to prevent that. But in 2007, we had the patch in
place; so we did not collect the AMT revenue from those 21 million
taxpayers. And yet we collected, last year, in revenues to the Federal
Government, about 18.7, 18.8 percent of gross domestic product. The
historic average of revenues coming into the Federal Government for the
last 40 years has been about 18.3 percent of GDP. So last year with the
AMT patch in place, those 21 million taxpayers protected from the AMT,
we brought in substantially more in revenues to the Federal Government
than we have historically.
So why, then, should we be so intent on increasing taxes to prevent
those 21 million taxpayers from paying $2,400 apiece more in taxes in
2008? The only explanation is somebody just wants to get more revenue
into the Federal Government. Now, they may say, well, we want to do
that because the deficit is really high and we want to get the deficit
down. Well, I wonder, if we took a poll across America, how many
Americans would say, ``Yes, I want to get the deficit down and I want
to do it by raising taxes'' and how many Americans would say, ``Yes, I
want to get the deficit down, but I want to do it by controlling
spending''? My guess is more Americans would say, ``I want to get the
deficit down by controlling spending.'' But the PAYGO rules that are in
effect, while they give us the opportunity to reduce spending to ``pay
for'' all of these things, not once have we seen a cut in spending
being offered by the majority to pay for any of these items. It's
always a tax increase.
So, yes, if you want to get the deficit down to zero, you can do it
by increasing taxes, and under the PAYGO baseline, if we were to follow
it, we would continue to increase the take of the Federal Government
from American taxpayers until at the end of a 10-year window we'd be
taking in 20.5 percent of GDP, an historic high, or pretty close to an
historic high, and certainly only a couple times in our Nation's
history have we even approached that level of revenues coming into the
Federal Government.
Now, I think it's a legitimate question as to what is the appropriate
level of GDP that we should bring in to the Federal Government, and
Chairman Rangel alluded to that in his statement by saying that, I
believe he said, the President hasn't offered a tax reform plan. That's
true, I guess, he hasn't. But you know what? Under the Constitution,
the President can't even introduce a bill, much less pass one. That's
the job of the Congress.
So if we want to do tax reform, which I think is appropriate, we
ought to have this discussion about what is the appropriate level of
revenue that we should bring in? What is the appropriate take of the
Federal Government of everything that Americans make? Is it 18.3
percent, the historic average? Is it 18.7 percent, what we took in last
year? Or is it 20.5 percent? I don't know what the magic number is, but
that's a legitimate debate, and we ought to have that debate in the
context of writing a new tax system for the United States that is more
modern, more efficient, and more competitive. So I hope that the
chairman will, in his constitutional prerogative as the chairman of the
Ways and Means Committee, undertake that task, have that debate, so
that we can solve this problem once and for all of the AMT, the
complexity of the code, and the continuing diminution of
competitiveness that we enjoy with our tax system, vis-a-vis our
competitors around the world.
This bill employs some pay-fors, some tax increases, that I believe
would be onerous and would add to the lack of competitiveness in our
Tax Code. For example, there is a provision that would, for the first
time, ignore tax treaties that we have entered into in good faith with
other countries around the world and would impose upon companies doing
business, foreign companies doing business, through a United States
subsidiary in this country, creating jobs in this country, a 30 percent
tax, despite the fact that we have a tax treaty that says that company
would get a deduction for that income and would not have to pay that 30
percent tax because they'd be paying taxes in the country where we have
a tax treaty.
Now, yes, they say, well, but the ultimate parent is somewhere where
there's not a tax treaty, but that still violates the spirit of the tax
treaty that we have with the country where the immediate parent of the
United States subsidiary resides. That change in our Tax Code would
discourage at the margin that capital from coming to this country,
being invested in this country, and creating jobs in this country.
Those companies that I'm talking about employ a substantial number of
Americans; 5.3 million Americans are employed by those kinds of
companies. Do we want to jeopardize those jobs? And 19 percent of all
United States exports, helping us a little bit to get the balance of
trade going our way, 19 percent of all exports come from companies like
that. And just last year they reinvested nearly $71 billion back into
their United States operations. That's capital, that's investment that
we should want here and not discourage through tax changes like the one
in this bill.
So, Mr. Speaker, I would say to the Members of this body that we
ought to reject the majority's offering that they put forward today to
save 21 million taxpayers from coming under the AMT because they would
impose a like amount of tax increase on another set of taxpayers. Let's
not increase taxes on any set of taxpayers, certainly not in this
fragile economy.
We will later offer a motion to recommit that corrects the error,
that strips the bill of the pay-fors, and it would allow this body to
vote on a clean AMT patch to save those 21 million taxpayers from the
increased tax burden but not increase taxes on somebody else.
{time} 1330
With that, Mr. Speaker, I yield back the balance of my time.
Mr. RANGEL. I have no further speakers, Mr. Speaker.
General Leave
Mr. RANGEL. I ask unanimous consent that all Members may have 5
legislative days to revise and extend their remarks and include
extraneous material on H.R. 6275, as amended.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from New York?
There was no objection.
Mr. MEEK of Florida. Mr. Speaker, I am pleased to be a cosponsor to
this bill that will give Alternative Minimum Tax Relief to those
families in my district and the entire State of Florida who will be
unfairly hit with this tax in 2008.
While the AMT was not intended to burden our working families, now in
2008 it does. Initially, the AMT applied to fewer than 20,000
taxpayers. In 2007, it applied to 4.2 million taxpayers. By 2008, up to
26 million taxpayers are projected to be subject to the AMT. Moreover,
it is the middle- to upper-middle-income taxpayers who are the targets
of this tax. It is our married taxpayers and larger families that are
especially going to fall under this tax.
An astounding increase in the number of working families in Florida
will be hurt by the AMT in 2008 if something is not done. It is
projected that over six times the number of working families will be
hurt by the AMT in my State of Florida in 2008 than were hurt by this
tax in 2005. In 2005, there were 161,000 AMT returns filed in the State
of Florida. However,
[[Page H6040]]
in 2008, it is estimated that 956,000 AMT returns will be filed in
Florida--a more than six times increase between 2005 and 2008.
In 2007, Florida ranked seventh in the number of returns that were
caught. with the Alternative Minimum Tax burden. However, in 2008,
Florida is projected to rank fifth in the number of returns caught with
the AMT. So even in the one year, 2007 to 2008, the number of working
families in Florida caught with the AMT has increased tremendously.
Originally, the AMT was intended to cover only America's high-income
taxpayers to ensure that they pay at least a minimum amount of federal
taxes. But now, it is not this group that will be the most adversely
affected by the AMT. It is our hard-working families--over 950,000
hard-working families in Florida alone that will be hit unintentionally
and unfairly with this tax. This is not what the AMT was intended to
do, and it is time for those families in Florida and elsewhere to get
badly needed relief from this tax.
Mr. CONYERS. Mr. Speaker, the middle class is hurting. They are
facing tough decisions over rising gas, food, and health care prices.
Adding to their economic dilemma, the Alternative Minimum Tax, AMT, may
reach many of them this coming year. Today, we will vote on H.R. 6275,
the Alternative Minimum Tax Relief Act of 2008, which would provide
relief to middle class taxpayers by avoiding the AMT.
The original intent behind the AMT was to guarantee that the
wealthiest Americans paid their fair share of taxes. However, the AMT
was not adjusted for inflation and hard-working Americans were lumped
into this tax. Today, the Congress must act to prevent 25.6 million
middle income Americans being liable for paying thousands of dollars in
additional taxes.
Restructuring the tax code will more fairly distribute the tax
burden. H.R. 6275 will tax private equity managers, who actually pay
lower taxes on carried interest and repeal unnecessary Government
subsidies for the big five oil companies reaping record profits and on
multinational corporations who offshore their businesses for the
express purpose of tax avoidance. It is unconscionable that our tax
code allows these corporations to avoid taxes while hard-working
Americans get hit with a stern tax and pay extremely high gas prices at
the pump. This legislation closes these major tax loopholes.
H.R. 6275 restores America's tradition of giving a helping hand to
those in need. We need to stop the giveaways to Big Oil and Wall Street
brokers and begin to focus on the needs of average working Americans.
This is a commonsense piece of legislation and I urge my colleagues to
support the bill.
Mr. LEVIN. Mr. Speaker, I rise in strong support of the AMT Relief
Act. Once again, we are considering a one-year ``patch'' for the AMT.
This bill will protect over 25 million families who would otherwise be
forced to pay higher taxes under the AMT through no fault of their own.
We all know that the AMT was never meant to apply to middle-class
families, and I think we all agree that we need to find a permanent fix
to this problem.
But once again, the minority wants to insist that we provide this tax
relief in a fiscally irresponsible manner. Patching the AMT for 2008
without offsets would increase the deficit by $61 billion. Our
colleagues in the minority will argue that because Congress never meant
for this to happen, or that because it maintains the status quo for
taxpayers, we don't have to pay for it.
The reality is that we pay for it one way or another. The minority
would have us borrow the money and make our children pay for it.
Let me say a word about the offsets we've used here, because this
bill is paid for with provisions that end basic inequities in our tax
code.
The Joint Committee on Taxation's revenue estimate for the carried
interest provision indicates that over $150 billion in income will be
taxed at capital gains rates rather than ordinary income rates if we do
not make this change. This is a lot of income, and according to the
Joint Committee, this is not going to ``mom and pop'' operations, a
common reference by those arguing against this provision.
For anyone who thinks there are ``mom and pop'' private equity funds,
or that this is essentially about ``mom and pop'' real estate
developers, let me quote the Joint Committee on Taxation. In a memo to
the Ways and Means Committee staff, the Joint Committee writes: ``We
assumed that nearly all recipients [of carried interest] would be at
the highest marginal tax rate.'' The top tax bracket for married
couples starts at $357,000 in taxable income. Claims made that the
carried interest issue is about ``mom and pop'' business owners just
are not credible.
More generally though, treating carried interest as ordinary income
is not about raising taxes, it's about fairness. Investment fund
managers should not pay a lower tax rate on their compensation for
services than other Americans. The only thing this does is say to the
fund managers, if you're providing a service, in this case managing
assets for your investors, you ought to be taxed on that compensation
at the same rates as everyone else.
If they have their own money in the funds they manage, they will
still get capital gains treatment on that portion of the profits. This
is no different in concept than options for corporate executives. They
are both incentive compensation to encourage performance, and carried
interest should be taxed at ordinary rates like stock options.
The argument that this proposal will hurt economic growth or even
pension plans is just disingenuous. If it will hurt growth, why have
senior economic advisers to the last three Republican Presidents
publicly supported this proposal? Real estate partnerships, including
those that don't use carried interest at all, earn less than 10 percent
of all income from real estate development and construction.
Regarding the oil and gas provisions, I think it's important to look
at the history of how these companies got these subsidies in the first
place. In 2004 we had to replace the FSC provisions of our tax code
because of a WTO ruling. We replaced them with a deduction to encourage
domestic manufacturing.
The minority, then in the majority, added the oil and gas industries
to what was supposd to be a deduction for manufacturers, even though
the FSC provisions we were replacing had nothing to do with oil and
gas. This was an unjustified giveaway then, and it is only fair that we
correct the situation, especially now that oil companies are earning
record profits. ExxonMobil alone earned $40.6 billion in 2007, a U.S.
corporate record.
So, Mr. Speaker, this bill protects middle-class families from the
AMT, it's fiscally responsible and it makes our tax code fairer. I urge
all my colleagues to support it.
Mr. ETHERIDGE. Mr. Speaker, I rise in support of H.R. 6275,
Alternative Minimum Tax Relief Act of 2008.
H.R. 6275 is critical to easing the burden on middle-class taxpayers.
The Alternative Minimum Tax, AMT, was originally intended to make sure
that the Nation's wealthiest citizens did not avoid paying taxes
altogether. However, it was not indexed for inflation and the AMT now
affects millions of middle income tax payers across the country. H.R.
6275 would extend for 1 year AMT relief for nonrefundable personal
credits and increases the AMT exemption amount to $69,950 for joint
filers and $46,200 for individuals. At a time of economic uncertainty
and rising gas and food prices, H.R. 6275 would provide over 25 million
families with tax relief. In my district alone, over 33,000 families
would be affected by the AMT this year.
As a member of the Budget Committee, I am also pleased that this bill
includes offsets and is budget-neutral. Instead of adding to our
national debt, H.R. 6275 responsibly pays for itself by closing a
loophole that allows hedge fund managers to pay less taxes, encouraging
tax compliance, repealing subsidies for the five biggest oil companies,
and tightening tax laws on foreign-owned companies. I support H.R.
6275, Alternative Minimum Tax Relief Act of 2008, and I urge my
colleagues to join me in voting for its passage.
Mr. PASCRELL. Mr. Speaker, one of the hallmarks of the Ways and Means
Committee is that fairness is always the order of the day. Fairness in
priorities. Fairness in legislation. H.R. 6275 exemplifies this fact.
Our bill will provide $62 billion in AMT relief to more than 25
million families nationwide.
In my district alone, almost 80,000 people are on track to endure the
significant tax increase of the AMT this year if we do not act now.
That's up from 20,000 people in 2005.
Many of the people affected would be firefighters, cops and
teachers--a far cry from the original intent of the AMT. Indeed, the
middle class is being more and more affected--your constituents and
mine. And it's only getting worse.
Unfortunately there are those on the other side of the aisle who will
not vote today for the best interests of their constituents.
Instead, they will choose to cast their vote for the Kings of Wall
Street who are already the richest people in the history of our Nation.
We pay for this bill, in part, by simply requiring that investment
fund managers are taxed at the same income rates as every other
American. After all, why should the very richest among us be taxed at
15 percent when a doctor or lawyer pays 35 percent? Or when a teacher
or plumber, et cetera, is taxed at 25?
Yet because of this provision, many Republicans will be unable to
vote for real tax relief for their constituents. I find this as
inexplicable as I do sad.
This legislation is wise and it is fair. It will give tax relief to
25 million hard-working Americans while ensuring fairness in the tax
code. So try to explain to the firefighters and cops in your district
that you wanted to take care of investment fund managers instead.
Mrs. JONES of Ohio. Mr. Speaker, I rise today in support of H.R.
6275, the Alternative Minimum Tax Relief Act of 2008. I am pleased to
see that once again you have presented a
[[Page H6041]]
responsible solution to the alternative minimum tax from a broad,
policy-oriented perspective.
The alternative minimum tax is a critical issue for the American
middle class taxpayer who does not get to take advantage of
sophisticated tax planning and legal loopholes in the tax code. It is
time that we addressed this issue once and for all to relieve the
American taxpayer from the agony of dealing with the AMT. A permanent
patch is what we really need, but today we have to plug the dike once
again.
If you'll recall, in 1969 the public outcry was so loud about the
original 155 families who owed no Federal income taxes that Congress
received more letters from constituents about that than about the
Vietnam war.
It is particularly ironic that a tax that was meant for 155 wealthy
individuals has become the bane of existence for millions of American
taxpayers. Indeed the AMT has become a menace. Over 31,000 hardworking,
middle-class Ohioans in my district had the grim task of filing a
return with AMT implications in the 2005 tax year.
Without this legislation that number would surely grow. Those are
families with children, healthcare costs, unemployment issues, housing
costs and the other money matters with which American taxpayers must
cope, not to mention higher gas prices. Tax relief is due.
As I mentioned after the introduction of H.R. 2834, the carried
interest legislation sponsored by my colleague, Sander Levin, we must
continue to laud the efforts of American capitalists and the strides
that they make in enhancing and creating liquidity in our capital
markets, and helping our economy grow into the dynamic force that it is
today. I am also aware of the critical role that private equity firms
play in our economy. We must be aware that this change in taxation can
have a deleterious effect on some small venture capital and minority-
owned firms. The color of money is green, but if you are smaller than
Blackstone or Carlyle, your firm might be seeing red. But we must also
have responsible budget offsets.
The tenets of sound tax policy begin with the notions of equity,
efficiency and simplicity. Relying on that traditional framework I am
sure that we have come to a rational consensus that will ensure 25
million more Americans will not be hit with the AMT.
``Taxes are what we pay to live in civilized society,'' but dealing
with the AMT has become a bit uncivil.
Ms. SCHWARTZ. Mr. Speaker, I thank Chairman Rangel for his leadership
and I am proud of our work to protect 25 million American taxpayers--
including half a million people in Southeastern Pennsylvania--from the
pain of the Alternative Minimum Tax. True to their record of increasing
debt, the Republicans continue to say, ``there's no need to offset AMT
relief because this tax was never intended to hit these people.''
But in 2001 they knew that the Bush tax cuts would increase--by
127%--the number of AMT taxpayers this year. And they consistently used
these taxpayers to mask the true cost of their failed fiscal policies.
We cannot ignore the consequences of these bad decisions. We are
committed to reversing the Bush Administration's policy and fiscal
failures. We are committed to enacting permanent--fiscally
responsible--AMT relief for middle income taxpayers. And we are
committed to act today to protect millions of Americans from the AMT
this year without adding to the Nation's exploding debt.
Mr. Speaker--given the economic downturn and financial challenges
facing our families and our Nation, our constituents have the right to
expect fair and responsible tax policy. Today's proposal to provide tax
relief to 25 million American families by closing loopholes that
benefit only the wealthiest individuals is fair, it is responsible, and
it deserves passage.
Mr. KIND. Mr. Speaker, I rise today in support of H.R. 6275, the
Alternative Minimum Tax Relief Act of 2008. As a member of the Ways and
Means Committee, I am proud to have helped craft this very important
tax bill that will give much needed relief to millions of American
taxpayers.
Unfortunately, over the last several years we have seen tax bills
pushed through Congress and signed by the President under the guise of
``relief'' for the middle class and the poorest in the country. I think
many in this chamber have now come to recognize that many of these
measures presented as tax relief for the middle class were in fact more
tax breaks for the richest in society. Today we finally have before us
a bill that will give real relief to millions of taxpayers, many of
whom are hardworking middle class families.
Specifically, H.R. 6275 provides for a 1-year patch for the
Alternative Minimum Tax (AMT). The AMT was developed in the 1970s to
ensure that America's wealthiest could not take advantage of the tax
code in a way that would allow them to avoid paying taxes altogether.
The AMT was not indexed for inflation, however, and without this
legislation it will reach into the pocketbooks of middle-class families
it was never intended to hit. In my district alone, the AMT could
affect 50,000 additional western Wisconsin families this year, many of
whom have no idea they face a tax increase. Without this legislation,
it is estimated that the AMT will hit an additional 538,970 taxpayers
in Wisconsin and 25 million nationally. It is hard for me to think of
something more important than protecting 25 million Americans from a
tax that was never intended for them.
Most importantly, this bill is fully offset and complies with pay-go
rules that the Democratic majority restored at the beginning of this
Congress. The legislation provides 1-year relief from the AMT without
adding to the deficit by closing loopholes in the tax code, encouraging
tax compliance, and repealing excessive government subsidies given to
oil companies. These changes establish fairness in the tax code and
show that we can provide tax relief without sending the debt on to our
children. After years of fiscal recklessness--deficit-financed tax cuts
for the wealthy and out-of-control government spending--this bill sets
a precedent of fiscally responsible tax reform.
Finally, I would like to thank Chairman Rangel for putting together
this common sense bill that is not only fair but does the right thing
by paying for the bill and fixing some inequities in the tax code. I
look forward to working with him to reform the tax code and for once
and for all put an end to the AMT and Congress having to do a yearly
patch.
Again, Mr. Speaker, I am happy to support this sensible and fair tax
bill before us today. Protecting millions of taxpayers from being
caught by the AMT is of the utmost importance. I urge my colleagues to
support H.R. 6275.
Mr. MANZULLO. Mr. Speaker, temporary tax relief should not be offset
with permanent tax increases that will stifle foreign direct investment
into this country.
The Alternative Minimum Tax is a mistaken tax policy. Originally
designed to tax the super-rich, it now covers many in the middle class,
particularly those with large families, because of inflation. Without
relief, 19 million Americans will see a tax increase of $2,000 next
year.
However, to temporarily correct this error by permanently raising
nearly $7 billion from foreigners who invest in the United States
simply makes a bad situation worse. We are finally attracting more
foreign investment into the United States. In 2007, foreign direct
investment rose to its highest levels in seven years, reaching over
$204 billion.
U.S. subsidiaries of companies headquartered abroad now employ 5.3
million Americans, of which 30 percent work in the manufacturing
sector. Nineteen percent of all U.S. exports came from these firms and
they reinvested nearly $71 billion back into their U.S. operations.
In Illinois, U.S. subsidiaries of companies headquartered abroad
employed over 226,000 workers, of which over 61,000 were in the
manufacturing sector. In fact, there are over 30 U.S. subsidiaries of
companies headquartered abroad that employ over 6,000 workers in the
northern Illinois district that I am proud to represent.
The offset used to ``pay for'' part of this AMT bill will strongly
discourage future foreign investment in the United States and will halt
any future progress on negotiating tax treaties with other countries.
For example, Nissan USA, which is owned by Nissan headquartered in
Japan, borrows money from their finance unit based in the Netherlands.
Under our current tax treaty with the Netherlands, no tax is applied.
However, under this bill a new 10 percent tax would be applied to this
transaction. The Netherlands will then most likely view this as an
abrogation of our tax treaty and will either seek renegotiation or
outright annulment, thus hurting our overall trade with the
Netherlands.
This is all a silly exercise. We all know how this will turn out
because the Senate will not agree to these offsets. However, this bill
sends a chilling message to our friends overseas that they will be
subject to a higher tax next year because this is the second time that
the Democratic Party has proposed this offset. Vote no on H.R. 6275 to
preserve jobs in your district and to send a signal that the U.S.
remains open to foreign direct investment.
Mr. HERGER. Mr. Speaker, we all know this bill is purely a political
exercise. Congress will eventually pass an AMT patch that does not
contain permanent tax increases. All we are doing today is postponing
final action and risking a repeat of last year's delay that created
major headaches for taxpayers.
I believe we shouldn't be expanding the federal government's share of
the economy by pairing temporary extensions of tax relief with
permanent tax increases. I've heard a number of concerns from small
businesses about one of these offsets, a new reporting requirement for
credit card transactions. Last week, when the Ways and Means Committee
considered this bill, we were told by the Treasury Department that they
have not done a cost-benefit analysis on this proposal. I fear we are
going
[[Page H6042]]
down the same road as we did two years ago with the 3 percent
withholding requirement, which we've now learned will cost the
government far more than it will raise in revenue.
On top of that, this bill raises taxes on American energy producers.
This does nothing to reduce gas prices--in fact, it will only make them
higher. And there's simply no justification for a provision that
penalizes U.S. producers but doesn't affect subsidiaries of foreign-
owned firms. This legislation just doesn't make sense. I urge my
colleagues to vote ``no.''
Mr. HOLT. Mr. Speaker, I rise in support of H.R. 6275, the
Alternative Minimum Tax Relief Act of 2008.
Forty years ago the Alternative Minimum Tax (AMT) was originally
enacted to ensure that wealthiest Americans--like everyone else--paid
their fair share of taxes. Prior to the enactment of the AMT, the
wealthiest Americans were exploiting loopholes in the tax code to
circumvent their societal obligations. However this tax, which was
intended for a few hundred of the wealthiest Americans has never been
adjusted to account for inflation. Through inflation and tax-rate creep
the AMT has become a middle class tax hike.
We have been unable to pass a permanent fix to the AMT to prevent
middle class Americans from fearing that they will get hit by the AMT
every year. More families in Central New Jersey are affected by the AMT
than anywhere else in the country. Over 33,000 of my constituents
already pay the AMT, under the current law, and an additional 88,000 of
my constituents would be subject to the AMT if we do not act to prevent
the patch from expiring. American families are already suffering from
skyrocketing gas and food prices that they did not build into their
family budgets. Compounding this financial burden with an unexpected
and undeserved tax hike would hit New Jersey families hard. Yet, that
is what will happen if we do not take action today.
Mr. Speaker, I have long been concerned with the growing debt that we
are passing on to the next generation and have often called for a
revision of the AMT that will not increase our national debt. The
Alternative Minimum Tax Relief Act of 2008 makes good on our promise to
the American people that we will not spend money that Congress does not
have. This legislation will offer more than 25 million families relief
from the AMT without adding to the deficit. This will be achieved by
promoting tax compliance, removing inequities in the tax code, and
decreasing government subsidies to oil companies.
While I support this legislation, we need a permanent fix to ensure
that this tax intended for the wealthiest Americans is not passed down
to middle income Americans and do so in a fiscally responsible way.
Mr. RANGEL. I yield back the balance of my time, and ask for a vote
in favor of the amendment.
The SPEAKER pro tempore. All time for debate has expired.
Pursuant to House Resolution 1297, the previous question is ordered
on the bill, as amended.
The question is on the engrossment and third reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
Motion to Recommit Offered by Mr. McCrery
Mr. McCRERY. Mr. Speaker, I have a motion to recommit at the desk.
The SPEAKER pro tempore. Is the gentleman opposed to the bill?
Mr. McCRERY. I am opposed to the bill in its current form.
The SPEAKER pro tempore. The Clerk will report the motion to
recommit.
The Clerk read as follows:
Mr. McCrery of Louisiana moves to recommit the bill H.R.
6275 to the Committee on Ways and Means with instructions to
report the same back to the House promptly in the form to
which perfected at the time of this motion, with the
following amendments:
Page 4, after line 5, add the following new section:
SEC. 103. CHARITABLE MILEAGE RATE TREATED THE SAME AS MEDICAL
AND MOVING RATE.
(a) In General.--Subsection (i) of section 170 (relating to
standard mileage rate for use of passenger automobile) is
amended by striking ``14 cents per mile'' and inserting ``the
rate determined for purposes of sections 213 and 217''.
(b) Effective Date.--The amendment made by paragraph (1)
shall apply to miles driven on or after July 1, 2008.
Page 4, strike line 6 and all that follows through line 2
on page 37 (all of title II).
Mr. McCRERY (during the reading). Mr. Speaker, I ask unanimous
consent that the motion be considered as read.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Louisiana?
There was no objection.
The SPEAKER pro tempore. The gentleman is recognized for 5 minutes.
Mr. McCRERY. Thank you, Mr. Speaker.
The majority's use of PAYGO has really twisted the logic of this
bumper-sticker-turned-budget-tool into a pretzel. In the last 2 weeks,
when PAYGO stood in the way of more government spending, it was ignored
or openly waived. But, today, the majority insists on new permanent tax
increases in exchange for a 1-year extension of needed tax relief. That
is not a good deal for anybody--a permanent tax increase to pay for a
temporary tax relief.
The motion that we have before us would save us from that fate. It
would remove the tax increases in the bill, including the particularly
misguided higher taxes on energy production that would discourage
production here at home, that would further increase our energy
insecurity, that would reduce our energy supplies, and that would
increase prices.
Is that what we want to do? Do we want to increase the price of
gasoline? That is what the effect of this would be. This is a tax
increase on oil and gas companies--the companies that produce the oil,
the gasoline that we buy. Do we think that, if we increase taxes on
them, they are just going to absorb that? Of course not. They will pass
it through to the consumer, which will mean higher gasoline prices.
This is a terribly misguided part of this bill. The motion to
recommit would get rid of that ill-advised tax increase. So we get rid
of all the pay-fors in the bill. That's the first thing that the motion
to recommit does.
The second thing we do is we do provide some relief in this bill from
high gasoline prices to volunteers who use their vehicles to help
charities carry out their work. A lot of charities are telling us that
they are losing volunteers because of the high price of gasoline.
Now, the IRS has some authority to modify the tax deduction that
people can get from using gasoline in certain situations. So the IRS
did, this week in fact, implement a midyear increase in the standard
mileage deduction rates, increasing to 58\1/2\ cents the allowable
deduction for expenses incurred in operating a vehicle while carrying
on a trade or business, and raising to 27 cents per mile the deduction
for gasoline costs associated with transportation primarily for and
essential to receiving medical care and for travel while moving.
But the IRS could not raise the deduction that can be claimed by
individuals who use their car for charitable purposes, such as for
delivering Meals on Wheels. That has to be done legislatively. So our
motion to recommit would do just that. We would set the allowable
deduction for gasoline expenses for charitable purposes at the same
rate for medical care and for travel while moving, 27 cents per mile.
Meals on Wheels is one of those charities that has told us that they
are losing volunteers because of gas prices. Nearly half indicated that
increases in gas prices had forced them to eliminate meal delivery
routes or to consolidate their meal services.
Mr. Speaker, these high gasoline prices are, in fact, having a very
deleterious effect on charities and on Meals on Wheels in particular. I
won't go into some of the details that we have been given by Meals on
Wheels about the state of some of our seniors, but needless to say,
it's not a pretty picture.
So this would give those charities some relief, Mr. Speaker, and it
would allow them, we think, to get some of those volunteers back in
active service to relieve some of these problems that we have.
So, Mr. Speaker, our motion to recommit does two things. It takes out
the tax increases in this bill, leaving in place the AMT patch to give
tax relief to those taxpayers who would otherwise be subjected to a
$2,400-apiece increase in taxes, and number two, it increases the
deduction, the mileage deduction, for vehicle use for charitable
purposes.
Mr. Speaker, I urge its adoption.
Mr. RANGEL. Mr. Speaker, I rise in opposition to the motion to
recommit.
The SPEAKER pro tempore. The gentleman from New York is recognized
for 5 minutes.
Mr. RANGEL. Certainly, the gentleman from Louisiana knows that we
would be willing to work on the charitable deduction as it relates to
the changes that were made by the administration, but basically, what
he is saying is that, as to the $61 billion in tax
[[Page H6043]]
loopholes that we have raised, they would rather borrow the money than
fill the gap that relieving the people of this tax burden would have.
So we both agree that 25 million people shouldn't suffer with this
$61 billion tax increase, but he would have you believe that, if you
take this out, you wouldn't have to put anything in. Well, what you're
putting in is the future of our children and of our grandchildren.
I ask that this motion to recommit be rejected.
I yield back the balance of my time.
The SPEAKER pro tempore. Without objection, the previous question is
ordered on the motion to recommit.
There was no objection.
The SPEAKER pro tempore. The question is on the motion to recommit.
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.
Mr. McCRERY. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 and clause 9 of rule
XX, this 15-minute vote on the motion to recommit will be followed by
5-minute votes on passage of H.R. 6275, and the motion to suspend the
rules on H.R. 3546.
The vote was taken by electronic device, and there were--yeas 199,
nays 222, not voting 13, as follows:
[Roll No. 454]
YEAS--199
Aderholt
Akin
Alexander
Bachmann
Bachus
Barrett (SC)
Barrow
Bartlett (MD)
Barton (TX)
Bean
Biggert
Bilbray
Bilirakis
Bishop (UT)
Blackburn
Blunt
Boehner
Bonner
Bono Mack
Boozman
Boustany
Brady (TX)
Broun (GA)
Brown (SC)
Brown-Waite, Ginny
Buchanan
Burgess
Burton (IN)
Buyer
Calvert
Camp (MI)
Campbell (CA)
Cantor
Capito
Carter
Castle
Chabot
Coble
Cole (OK)
Conaway
Crenshaw
Culberson
Davis (KY)
Davis, David
Davis, Tom
Deal (GA)
Dent
Diaz-Balart, L.
Diaz-Balart, M.
Doolittle
Drake
Dreier
Duncan
Ehlers
Emerson
English (PA)
Everett
Fallin
Feeney
Ferguson
Flake
Forbes
Fortenberry
Fossella
Foxx
Franks (AZ)
Frelinghuysen
Gallegly
Garrett (NJ)
Gerlach
Gilchrest
Gingrey
Gohmert
Goode
Goodlatte
Granger
Graves
Hall (TX)
Hastings (WA)
Hayes
Heller
Hensarling
Herger
Hobson
Hoekstra
Hulshof
Hunter
Inglis (SC)
Issa
Johnson (IL)
Johnson, Sam
Jones (NC)
Jordan
Keller
King (IA)
King (NY)
Kingston
Kirk
Kline (MN)
Knollenberg
Kuhl (NY)
LaHood
Lamborn
Latham
LaTourette
Latta
Lewis (CA)
Lewis (KY)
Linder
LoBiondo
Lucas
Lungren, Daniel E.
Mack
Manzullo
Marchant
Marshall
McCarthy (CA)
McCaul (TX)
McCotter
McCrery
McHenry
McHugh
McIntyre
McKeon
McMorris Rodgers
Mica
Miller (FL)
Miller (MI)
Miller, Gary
Mitchell
Moran (KS)
Murphy, Tim
Musgrave
Myrick
Neugebauer
Nunes
Paul
Pearce
Pence
Peterson (PA)
Petri
Pickering
Pitts
Platts
Poe
Porter
Price (GA)
Radanovich
Ramstad
Regula
Rehberg
Reichert
Renzi
Reynolds
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Roskam
Royce
Ryan (WI)
Sali
Saxton
Scalise
Schmidt
Sensenbrenner
Sessions
Shadegg
Shays
Shimkus
Shuster
Simpson
Smith (NE)
Smith (NJ)
Smith (TX)
Souder
Stearns
Sullivan
Tancredo
Terry
Thornberry
Tiahrt
Tiberi
Turner
Upton
Walberg
Walden (OR)
Walsh (NY)
Wamp
Weldon (FL)
Weller
Westmoreland
Whitfield (KY)
Wilson (NM)
Wilson (SC)
Wittman (VA)
Wolf
Young (AK)
Young (FL)
NAYS--222
Abercrombie
Ackerman
Allen
Altmire
Andrews
Arcuri
Baca
Baird
Baldwin
Becerra
Berkley
Berman
Berry
Bishop (GA)
Bishop (NY)
Blumenauer
Boren
Boswell
Boucher
Boyd (FL)
Boyda (KS)
Brady (PA)
Braley (IA)
Brown, Corrine
Butterfield
Capps
Capuano
Cardoza
Carnahan
Carney
Carson
Castor
Cazayoux
Chandler
Childers
Clarke
Clay
Cleaver
Clyburn
Cohen
Conyers
Cooper
Costa
Costello
Courtney
Cramer
Crowley
Cuellar
Davis (AL)
Davis (CA)
Davis (IL)
Davis, Lincoln
DeFazio
DeGette
Delahunt
DeLauro
Dicks
Dingell
Doggett
Donnelly
Doyle
Edwards (MD)
Edwards (TX)
Ellison
Ellsworth
Emanuel
Engel
Eshoo
Etheridge
Farr
Fattah
Filner
Foster
Frank (MA)
Giffords
Gillibrand
Gonzalez
Gordon
Green, Al
Green, Gene
Grijalva
Gutierrez
Hall (NY)
Hare
Harman
Hastings (FL)
Herseth Sandlin
Higgins
Hill
Hinchey
Hinojosa
Hirono
Hodes
Holden
Holt
Honda
Hooley
Hoyer
Inslee
Israel
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Johnson (GA)
Johnson, E. B.
Jones (OH)
Kagen
Kanjorski
Kaptur
Kennedy
Kildee
Kilpatrick
Kind
Klein (FL)
Kucinich
Langevin
Larsen (WA)
Larson (CT)
Lee
Levin
Lewis (GA)
Lipinski
Loebsack
Lofgren, Zoe
Lowey
Lynch
Maloney (NY)
Markey
Matheson
Matsui
McCarthy (NY)
McCollum (MN)
McDermott
McGovern
McNerney
McNulty
Meek (FL)
Meeks (NY)
Melancon
Michaud
Miller (NC)
Miller, George
Mollohan
Moore (KS)
Moran (VA)
Murphy (CT)
Murphy, Patrick
Murtha
Nadler
Napolitano
Neal (MA)
Oberstar
Obey
Olver
Ortiz
Pallone
Pascrell
Pastor
Payne
Perlmutter
Peterson (MN)
Pomeroy
Price (NC)
Rahall
Rangel
Reyes
Richardson
Rodriguez
Ros-Lehtinen
Ross
Rothman
Roybal-Allard
Ruppersberger
Ryan (OH)
Salazar
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Schakowsky
Schiff
Schwartz
Scott (GA)
Scott (VA)
Serrano
Sestak
Shea-Porter
Sherman
Shuler
Sires
Skelton
Slaughter
Smith (WA)
Solis
Space
Spratt
Stark
Stupak
Sutton
Tanner
Tauscher
Taylor
Thompson (CA)
Thompson (MS)
Tierney
Towns
Udall (CO)
Udall (NM)
Van Hollen
Velazquez
Visclosky
Walz (MN)
Wasserman Schultz
Waters
Watt
Waxman
Weiner
Welch (VT)
Wexler
Wilson (OH)
Woolsey
Wu
Yarmuth
NOT VOTING--13
Cannon
Cubin
Cummings
Lampson
Mahoney (FL)
Moore (WI)
Pryce (OH)
Putnam
Rush
Snyder
Speier
Tsongas
Watson
{time} 1402
Messrs. JACKSON of Illinois, THOMPSON of Mississippi, MELANCON, Ms.
SUTTON, Messrs. TIERNEY, COHEN, Ms. JACKSON-LEE of Texas, Messrs.
BAIRD, BERRY, Ms. CLARKE, Mr. LINCOLN DAVIS of Tennessee, and Ms. ROS-
LEHTINEN changed their vote from ``yea'' to ``nay.''
Mr. MILLER of Florida, Mrs. MUSGRAVE, and Messrs. ENGLISH of
Pennsylvania and BROUN of Georgia changed their vote from ``nay'' to
``yea.''
So the motion to recommit was rejected.
The result of the vote was announced as above recorded.
The SPEAKER pro tempore. The question is on the passage of the bill.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Recorded Vote
Mr. CAMP of Michigan. Mr. Speaker, I demand a recorded vote.
A recorded vote was ordered.
The SPEAKER pro tempore. This will be a 5-minute vote.
The vote was taken by electronic device, and there were--ayes 233,
noes 189, not voting 12, as follows:
[Roll No. 455]
AYES--233
Abercrombie
Ackerman
Allen
Altmire
Andrews
Arcuri
Baca
Baird
Baldwin
Barrow
Becerra
Berkley
Berman
Berry
Bilbray
Bishop (GA)
Bishop (NY)
Blumenauer
Boswell
Boucher
Boyd (FL)
Boyda (KS)
Brady (PA)
Braley (IA)
Brown, Corrine
Butterfield
Capps
Capuano
Cardoza
Carnahan
Carney
Carson
Castor
Cazayoux
Chandler
Childers
Clarke
Clay
Cleaver
Clyburn
Cohen
Conyers
Cooper
Costa
Costello
Courtney
Cramer
Crowley
Cuellar
Cummings
Davis (AL)
Davis (CA)
Davis (IL)
Davis, Lincoln
DeFazio
DeGette
Delahunt
DeLauro
Dicks
Dingell
Doggett
Donnelly
Doyle
Edwards (MD)
Edwards (TX)
Ellison
Ellsworth
Emanuel
Engel
Eshoo
Etheridge
Farr
Fattah
Filner
Foster
Frank (MA)
Giffords
Gilchrest
Gillibrand
Gonzalez
Gordon
Green, Al
Grijalva
Gutierrez
Hall (NY)
Hare
Harman
Hastings (FL)
Hayes
Herseth Sandlin
Higgins
Hill
Hinchey
Hinojosa
Hirono
Hodes
Holden
Holt
Honda
Hooley
Hoyer
Inslee
Israel
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Johnson (GA)
Johnson (IL)
Johnson, E. B.
Jones (NC)
Jones (OH)
Kagen
Kanjorski
Kaptur
Kennedy
Kildee
Kilpatrick
Kind
Kirk
Kucinich
LaHood
Langevin
Larsen (WA)
Larson (CT)
Lee
Levin
Lewis (GA)
Lipinski
Loebsack
Lofgren, Zoe
Lowey
Lynch
Maloney (NY)
Markey
Marshall
Matheson
Matsui
McCarthy (NY)
McCollum (MN)
McDermott
McGovern
McIntyre
McNerney
McNulty
Meek (FL)
Meeks (NY)
[[Page H6044]]
Melancon
Michaud
Miller (NC)
Miller, George
Mollohan
Moore (KS)
Moore (WI)
Moran (VA)
Murphy (CT)
Murphy, Patrick
Murtha
Nadler
Napolitano
Neal (MA)
Oberstar
Obey
Olver
Ortiz
Pallone
Pascrell
Pastor
Payne
Perlmutter
Peterson (MN)
Pomeroy
Price (NC)
Rahall
Rangel
Reyes
Richardson
Rodriguez
Rogers (AL)
Ros-Lehtinen
Ross
Rothman
Roybal-Allard
Ruppersberger
Ryan (OH)
Salazar
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Schakowsky
Schiff
Schwartz
Scott (GA)
Scott (VA)
Serrano
Sestak
Shea-Porter
Sherman
Shuler
Sires
Skelton
Slaughter
Smith (NJ)
Smith (WA)
Solis
Space
Spratt
Stark
Stupak
Sutton
Tanner
Tauscher
Taylor
Thompson (CA)
Thompson (MS)
Tierney
Towns
Tsongas
Udall (CO)
Udall (NM)
Van Hollen
Velazquez
Visclosky
Walz (MN)
Wasserman Schultz
Waters
Watt
Waxman
Weiner
Welch (VT)
Wilson (OH)
Woolsey
Wu
Yarmuth
NOES--189
Aderholt
Akin
Alexander
Bachmann
Bachus
Barrett (SC)
Bartlett (MD)
Barton (TX)
Bean
Biggert
Bilirakis
Bishop (UT)
Blackburn
Blunt
Boehner
Bonner
Bono Mack
Boozman
Boren
Boustany
Brady (TX)
Broun (GA)
Brown (SC)
Brown-Waite, Ginny
Buchanan
Burgess
Burton (IN)
Buyer
Calvert
Camp (MI)
Campbell (CA)
Cantor
Capito
Carter
Castle
Chabot
Coble
Cole (OK)
Conaway
Crenshaw
Culberson
Davis (KY)
Davis, David
Davis, Tom
Deal (GA)
Dent
Diaz-Balart, L.
Diaz-Balart, M.
Doolittle
Drake
Dreier
Duncan
Ehlers
Emerson
English (PA)
Everett
Fallin
Feeney
Ferguson
Flake
Forbes
Fortenberry
Fossella
Foxx
Franks (AZ)
Frelinghuysen
Gallegly
Garrett (NJ)
Gerlach
Gingrey
Gohmert
Goode
Goodlatte
Granger
Graves
Green, Gene
Hall (TX)
Hastings (WA)
Heller
Hensarling
Herger
Hobson
Hoekstra
Hulshof
Hunter
Inglis (SC)
Issa
Johnson, Sam
Jordan
Keller
King (NY)
Kingston
Klein (FL)
Kline (MN)
Knollenberg
Kuhl (NY)
Lamborn
Latham
LaTourette
Latta
Lewis (CA)
Lewis (KY)
Linder
LoBiondo
Lucas
Lungren, Daniel E.
Mack
Manzullo
Marchant
McCarthy (CA)
McCaul (TX)
McCotter
McCrery
McHenry
McHugh
McKeon
McMorris Rodgers
Mica
Miller (FL)
Miller (MI)
Miller, Gary
Mitchell
Moran (KS)
Murphy, Tim
Musgrave
Myrick
Neugebauer
Nunes
Paul
Pearce
Pence
Peterson (PA)
Petri
Pickering
Pitts
Platts
Poe
Porter
Price (GA)
Ramstad
Regula
Rehberg
Reichert
Renzi
Reynolds
Rogers (KY)
Rogers (MI)
Rohrabacher
Roskam
Royce
Ryan (WI)
Sali
Saxton
Scalise
Schmidt
Sensenbrenner
Sessions
Shadegg
Shays
Shimkus
Shuster
Simpson
Smith (NE)
Smith (TX)
Souder
Stearns
Sullivan
Tancredo
Terry
Thornberry
Tiahrt
Tiberi
Turner
Upton
Walberg
Walden (OR)
Walsh (NY)
Wamp
Weldon (FL)
Weller
Westmoreland
Wexler
Whitfield (KY)
Wilson (NM)
Wilson (SC)
Wittman (VA)
Wolf
Young (AK)
Young (FL)
NOT VOTING--12
Cannon
Cubin
King (IA)
Lampson
Mahoney (FL)
Pryce (OH)
Putnam
Radanovich
Rush
Snyder
Speier
Watson
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (during the vote). There are 2 minutes
remaining in this vote.
{time} 1409
So the bill was passed.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
____________________