[Congressional Record Volume 161, Number 118 (Sunday, July 26, 2015)]
[Senate]
[Pages S5847-S5848]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2424. Mr. CARPER submitted an amendment intended to be proposed by 
him to the bill H.R. 22, to amend the Internal Revenue Code of 1986 to 
exempt employees with health coverage under TRICARE or the Veterans 
Administration from being taken into account for purposes of 
determining the employers to which the employer mandate applies under 
the Patient Protection and Affordable Care Act; which was ordered to 
lie on the table; as follows:

       At the end of division F, add the following:

                         TITLE LXII--FUEL TAXES

     SEC. 62001. INCREASE IN TAX ON GASOLINE.

       (a) Phased-in Increase.--
       (1) In general.--Clause (i) of section 4081(a)(2)(A) of the 
     Internal Revenue Code of 1986 is amended by striking 
     ``aviation gasoline,'' and all that follows and inserting 
     ``aviation gasoline--

       ``(I) 22.3 cents per gallon in the case of gasoline 
     removed, entered, or sold in calendar year 2016,
       ``(II) 26.3 cents per gallon in the case of gasoline 
     removed, entered, or sold in calendar year 2017,
       ``(III) 30.3 cents per gallon in the case of gasoline 
     removed, entered, or sold in calendar year 2018, and
       ``(IV) 34.3 cents per gallon in the case of gasoline 
     removed, entered, or sold in calendar years beginning after 
     December 31, 2018,''.

       (2) Effective date.--The amendment made by this subsection 
     shall apply to gasoline removed, entered, or sold on or after 
     the first day of the first calendar quarter beginning not 
     less than 60 days after the date of the enactment of this 
     Act.
       (b) Adjustment for Inflation.--
       (1) In general.--Paragraph (2) of section 4081(a) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subparagraph:
       ``(E) Adjustment for inflation.--
       ``(i) In general.--In the case of gasoline removed, 
     entered, or sold in a calendar year after 2019, the 34.3 
     cents amount in subparagraph (A)(i)(IV) shall be increased by 
     an amount equal to--

       ``(I) such cents amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year by substituting 
     `calendar year 2018' for `calendar year 1992' in subparagraph 
     (B) thereof.

       ``(ii) Rounding.--If the amount as increased under clause 
     (i) is not a multiple of 0.1 cents, such amount shall be 
     rounded to the nearest multiple of 0.1 cents.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to gasoline removed, entered, or sold after 
     December 31, 2018.
       (c) Conforming Amendment Relating to Tax on Compressed 
     Natural Gas.--
       (1) In general.--The second sentence of subparagraph (A) of 
     section 4041(a)(3) of the Internal Revenue Code of 1986 is 
     amended by striking ``18.3 cents'' and inserting ``equal to 
     the rate of tax in effect under section 4081(a)(2)(A)(i) for 
     the calendar year in which such gas is sold or used,''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to compressed natural gas sold or used on or 
     after the first day of the first calendar quarter beginning 
     not less than 60 days after the date of the enactment of this 
     Act.
       (d) Conforming Amendment Relating to Tax on Methanol and 
     Ethanol.--
       (1) In general.--Paragraph (1) of section 4041(m) of the 
     Internal Revenue Code of 1986 is amended by striking ``shall 
     be--'' and all that follows and inserting ``shall be equal to 
     61.7 percent of the rate of tax in effect under section 
     4081(a)(2)(A)(i) for the calendar year in which such fuel is 
     sold or used.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to methanol and ethanol fuel sold or used on or 
     after the first day of the first calendar quarter beginning 
     not less than 60 days after the date of the enactment of this 
     Act.

     SEC. 62002. INCREASE IN TAX ON DIESEL FUEL AND KEROSENE.

       (a) In General.--Clause (iii) of section 4081(a)(2)(A) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``kerosene'' and all that follows and inserting ``kerosene--

       ``(I) 28.3 cents per gallon in the case of diesel fuel or 
     kerosene removed, entered, or sold in calendar year 2016,
       ``(II) 32.3 cents per gallon in the case of diesel fuel or 
     kerosene removed, entered, or sold in calendar year 2017,
       ``(III) 36.3 cents per gallon in the case of diesel fuel or 
     kerosene removed, entered, or sold in calendar year 2018, and
       ``(IV) 40.3 cents per gallon in the case of diesel fuel or 
     kerosene removed, entered, or sold in calendar years 
     beginning after December 31, 2018,''.

       (b) Adjustment for Inflation.--Subparagraph (E) of section 
     4081(a)(2) of the Internal Revenue Code of 1986, as added by 
     this title, is amended--
       (1) by redesignating clause (ii) as clause (iii),
       (2) by striking ``If the amount as increased under clause 
     (i)'' in clause (iii), as so redesignated, and inserting ``If 
     any amount as increased under clause (i) or (ii)'',
       (3) by striking ``In general'' in the heading of clause (i) 
     and inserting ``Tax on gasoline'', and
       (4) by inserting after clause (i) the following new clause:
       ``(ii) Tax on diesel fuel or kerosene.--In the case of 
     diesel fuel or kerosene removed, entered, or sold in a 
     calendar year after 2019, the 40.3 cents amount in 
     subparagraph (A)(iii)(IV) shall be increased by an amount 
     equal to--

       ``(I) such cents amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year by substituting 
     `calendar year 2018' for `calendar year 1992' in subparagraph 
     (B) thereof.''.

       (c) Conforming Amendment Relating to Tax on Diesel-water 
     Fuel Emulsions.--Subparagraph (D) of section 4081(a)(2) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``subparagraph (A)(iii) shall be applied by substituting 
     `19.7 cents' for `24.3 cents' '' and inserting ``the rate of 
     tax shall be equal to 81 percent of the rate of tax in effect 
     under subparagraph (A)(iii) for the calendar year in which 
     such emulsion is removed, entered, or sold''.
       (d) Conforming Amendment Relating to Tax on Certain 
     Alternative Fuels.--Clause (ii) of section 4041(a)(2)(B) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``24.3 cents per gallon'' and inserting ``the rate of tax 
     specified in section 4081(a)(2)(A)(iii) which is in effect at 
     the time of such sale or use''.
       (e) Conforming Amendment Relating to Rate of Tax on 
     Buses.--
       (1) In general.--Subparagraph (A) of section 6427(b)(2) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``7.4 cents per gallon less'' and all that follows and 
     inserting ``the aggregate rate at which tax was imposed on 
     such fuel by section 4041(a) or 4081, as the case may be, 
     reduced by the amount determined under subparagraph (E).''.
       (2) Amount determined.--Paragraph (2) of section 6427(b) of 
     such Code is amended by adding at the end the following new 
     subparagraph:
       ``(E) Amount determined.--
       ``(i) In general.--For purposes of subparagraph (A), the 
     amount determined under this paragraph is--

       ``(I) 8.62 cents per gallon in the case of fuel used in 
     calendar year 2016,
       ``(II) 9.84 cents per gallon in the case of fuel used in 
     calendar year 2017,
       ``(III) 11.05 cents per gallon in the case of fuel used in 
     calendar year 2018, and
       ``(IV) 12.27 cents per gallon in the case of fuel used in 
     calendar years beginning after December 31, 2018.

       ``(ii) Adjustment for inflation.--In the case of fuel used 
     in a calendar year after 2019, the 12.27 cents amount in 
     clause (i)(IV) shall be increased by an amount equal to--

       ``(I) such cents amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year by substituting 
     `calendar year 2018' for `calendar year 1992' in subparagraph 
     (B) thereof.''.

       (f) Effective Date.--The amendments made by this section 
     shall apply to diesel fuel, kerosene, and diesel-water fuel 
     emulsions removed, entered, or sold on or after

[[Page S5848]]

     the first day of the first calendar quarter beginning not 
     less than 60 days after the date of the enactment of this 
     Act.

     SEC. 62003. ALLOCATION IN ACCOUNTS IN HIGHWAY TRUST FUND.

       (a) In General.--Subparagraph (A) of section 9503(e)(2) of 
     the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(A) except as otherwise provided in this sentence--
       ``(i) 2.86 cents per gallon with respect to taxes imposed 
     during calendar year 2015,
       ``(ii) 3.66 cents per gallon with respect to taxes imposed 
     during calendar year 2016,
       ``(iii) 4.46 cents per gallon with respect to taxes imposed 
     during calendar year 2017,
       ``(iv) 5.26 cents per gallon with respect to taxes imposed 
     during calendar year 2018, and
       ``(v) 6.06 cents per gallon with respect to taxes imposed 
     during any calendar year after 2018,''.
       (b) Adjustment for Inflation.--Section 9503(e) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(6) Adjustment for inflation.--
       ``(A) In general.--In the case of any calendar year 
     beginning after 2019, the amount in clause (v) of paragraph 
     (2)(A) shall be increased by an amount equal to--
       ``(i) such amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year by substituting 
     `calendar year 2018' for `calendar year 1992' in subparagraph 
     (B) thereof.
       ``(B) Rounding.--Any increase under subparagraph (A) shall 
     be rounded to the nearest 0.1 cents.''.

     SEC. 62004. FLOOR STOCKS TAXES.

       (a) Imposition of Tax.--In the case of any taxable fuel 
     which is held on the floor stocks tax date by any person, 
     there is hereby imposed a floor stocks tax equal to the 
     excess of the tax which would be imposed on such fuel under 
     section 4041 or 4081 of the Internal Revenue Code of 1986 had 
     the taxable event occurred on the floor stocks tax date over 
     the tax paid under any such section on such fuel.
       (b) Liability for Tax and Method of Payment.--
       (1) Liability for tax.--A person holding a fuel on the 
     floor stocks tax date to which the tax imposed by subsection 
     (a) applies shall be liable for such tax.
       (2) Method of payment.--The tax imposed by subsection (a) 
     shall be paid in such manner as the Secretary shall 
     prescribe.
       (3) Time of payment.--The tax imposed by subsection (a) 
     shall be paid on or before the date which is 6 months after 
     the floor stocks tax date.
       (c) Definitions.--For purposes of this section--
       (1) Held by a person.--A fuel shall be considered as held 
     by a person if title thereto has passed to such person 
     (whether or not delivery to the person has been made).
       (2) Taxable fuel.--The term ``taxable fuel'' means--
       (A) gasoline (other than aviation gasoline), diesel fuel, 
     kerosene (other than aviation-grade kerosene), and diesel-
     water fuel emulsions;
       (B) fuel taxed under section 4041(a)(2) of the Internal 
     Revenue Code of 1986 (including methanol and ethanol to which 
     section 4041(m) of such Code applies); and
       (C) compressed natural gas.
       (3) Floor stocks date.--The term ``floor stocks tax date'' 
     means January 1 of any calendar year beginning after the date 
     of the enactment of this Act on which a rate of tax under 
     section 4041 or 4081 of such Code increases pursuant to an 
     amendment made by section 62001 or 62002.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.
       (d) Exception for Exempt Uses.--The tax imposed by 
     subsection (a) shall not apply to taxable fuel held by any 
     person exclusively for any use to the extent a credit or 
     refund of the tax imposed by a section of such Code is 
     allowable for such use.
       (e) Exception for Fuel Held in Vehicle Tank.--No tax shall 
     be imposed by subsection (a) on taxable fuel held in the tank 
     of a motor vehicle or motorboat.
       (f) Exception for Certain Amounts of Fuel.--
       (1) In general.--No tax shall be imposed by subsection (a) 
     on any fuel held on the floor stocks tax date by any person 
     if the aggregate amount of fuel held by such person on such 
     date does not exceed 2,000 gallons. The preceding sentence 
     shall apply only if such person submits to the Secretary (at 
     the time and in the manner required by the Secretary) such 
     information as the Secretary shall require for purposes of 
     this paragraph.
       (2) Exempt fuel.--For purposes of paragraph (1), there 
     shall not be taken into account fuel held by any person which 
     is exempt from the tax imposed by subsection (a) by reason of 
     subsection (d) or (e).
       (3) Controlled groups.--For purposes of this section--
       (A) Corporations.--
       (i) In general.--All persons treated as a controlled group 
     shall be treated as 1 person.
       (ii) Controlled group.--The term ``controlled group'' has 
     the meaning given to such term by subsection (a) of section 
     1563 of such Code; except that for such purposes the phrase 
     ``more than 50 percent'' shall be substituted for the phrase 
     ``at least 80 percent'' each place it appears in such 
     subsection.
       (B) Nonincorporated persons under common control.--Under 
     regulations prescribed by the Secretary, principles similar 
     to the principles of clause (i) shall apply to a group of 
     persons under common control where one or more of such 
     persons is not a corporation.
       (g) Other Laws Applicable.--All provisions of law, 
     including penalties, applicable with respect to the taxes 
     imposed by chapter 31 or 32 of such Code shall, insofar as 
     applicable and not inconsistent with the provisions of this 
     section, apply with respect to the floor stock taxes imposed 
     by subsection (a) to the same extent as if such taxes were 
     imposed by such chapter.
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