[Congressional Record Volume 161, Number 175 (Thursday, December 3, 2015)]
[Senate]
[Pages S8387-S8389]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2893. Mr. CASEY (for himself, Ms. Baldwin, Mrs. Murray, and Mr.
Reed) proposed an amendment to amendment SA 2874 proposed by Mr.
McConnell to the bill H.R. 3762, to provide for reconciliation pursuant
to section 2002 of the concurrent resolution on the budget for fiscal
year 2016; as follows:
At the appropriate place, insert the following:
SEC. ___. CREDIT FOR DUAL-EARNER FAMILIES.
(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by
inserting after section 25D the following new section:
``SEC. 25E. DUAL-EARNER FAMILIES.
``(a) Allowance of Credit.--In the case of an eligible
taxpayer, there shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount equal
to 7 percent of the lesser of--
``(1) $10,000, or
``(2) the earned income of the spouse with the lower amount
of earned income for such taxable year.
``(b) Limitation.--The amount of the credit allowable under
subsection (a) shall be reduced (but not below zero) by an
amount which bears the same ratio to the amount determined
under subsection (a) (as determined without regard to this
subsection) as the amount of the taxpayer's excess adjusted
gross income bears to $20,000.
``(c) Definitions.--For purposes of this section--
``(1) Earned income.--The term `earned income' has the same
meaning given such term in section 32(c)(2).
``(2) Eligible taxpayer.--
``(A) In general.--The term `eligible taxpayer' means a
taxpayer who--
``(i) files a joint return for the taxable year under
section 6013, and
``(ii) has at least 1 qualifying child (as defined in
section 152(c)) who has not attained 12 years of age before
the close of the taxable year.
``(3) Excess adjusted gross income.--The term `excess
adjusted gross income' means so much of the eligible
taxpayer's adjusted gross income for the taxable year as
exceeds $110,000.
``(d) Inflation Adjustment.--
``(1) In general.--In the case of any taxable year
beginning after 2016, each of the dollar amounts in
subsections (a)(1) and (c)(3) shall be increased by an amount
equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, determined by substituting `calendar year 2015'
for `calendar year 1992' in subparagraph (B) thereof.
``(2) Rounding.--If any dollar amount in subsection (a)(1)
or (c)(3), after being increased under paragraph (1), is not
a multiple of $1,000, such dollar amount shall be rounded to
the nearest multiple of $1,000.
``(e) Additional Eligibility Requirements.--
``(1) Individual claiming benefits under section 911.--No
credit shall be allowed under this section if an individual
(or the individual's spouse) claims the benefits of section
911 for the taxable year.
``(2) Non-resident aliens.--No credit shall be allowed
under this section if an individual (or the individual's
spouse) is a nonresident alien individual for any portion of
the taxable year unless such individual is treated for such
taxable year as a resident of the United States for purposes
of this chapter by reason of an election under subsection (g)
or (h) of section 6013.
``(3) Identification number requirement.--No credit shall
be allowed under this section if the eligible taxpayer does
not include on the joint return of tax for the taxable year--
``(A) the taxpayer identification number of the individual
and the individual's spouse, and
``(B) the name, age, and taxpayer identification number of
any qualifying children.
``(f) Taxable Year Must Be Full Taxable Year.--Except in
the case of a taxable year
[[Page S8388]]
closed by reason of the death of an individual, no credit
shall be allowable under this section in the case of a
taxable year covering a period of less than 12 months.''.
(b) Conforming Amendment.--The table of sections for
subpart A of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after
the item relating to section 25D the following:
``Sec. 25E. Dual-earner families.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2015.
SEC. ___. ENHANCEMENT OF THE DEPENDENT CARE TAX CREDIT.
(a) Increase in Dependent Care Tax Credit.--
(1) Increase in incomes eligible for full credit.--
Paragraph (2) of section 21(a) of the Internal Revenue Code
of 1986 is amended to read as follows:
``(2) Applicable percentage defined.--For purposes of
paragraph (1), the term `applicable percentage' means 35
percent reduced (but not below zero) by 1 percentage point
for each $5,000 (or fraction thereof) by which the taxpayer's
adjusted gross income for the taxable year exceeds
$110,000.''.
(2) Increase in dollar limit on amount creditable.--
Subsection (c) of section 21 of the Internal Revenue Code of
1986 is amended--
(A) by striking ``$3,000'' in paragraph (1) and inserting
``$8,000'', and
(B) by striking ``$6,000'' in paragraph (2) and inserting
``$16,000''.
(3) Inflation adjustment.--Section 21 of the Internal
Revenue Code of 1986 is amended--
(A) by redesignating subsection (f) as subsection (g), and
(B) by inserting after subsection (e) the following new
subsection:
``(f) Inflation Adjustment.--
``(1) In general.--In the case of any taxable year
beginning after 2016, the $110,000 amount in subsection
(a)(2) and each of the dollar amounts in subsection (c) shall
each be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, by substituting `2015' for `1992' in
subparagraph (B) thereof.
``(2) Rounding.--The amount of any increase under paragraph
(1) shall be rounded--
``(A) for purposes of the dollar amount in subsection
(a)(2), the nearest multiple of $1,000, and
``(B) for purposes of the dollar amounts in subsection (c),
the nearest multiple of $100.''.
(b) Dependent Care Tax Credit To Be Refundable.--
(1) In general.--The Internal Revenue Code of 1986 is
amended--
(A) by redesignating section 21, as amended by subsection
(a), as section 36C, and
(B) by moving section 36C, as so redesignated, from subpart
A of part IV of subchapter A of chapter 1 to the location
immediately before section 37 in subpart C of part IV of
subchapter A of chapter 1.
(2) Technical amendments.--
(A) Paragraph (1) of section 23(f) of the Internal Revenue
Code of 1986 is amended by striking ``21(e)'' and inserting
``36C(e)''.
(B) Paragraph (6) of section 35(g) of such Code is amended
by striking ``21(e)'' and inserting ``36C(e)''.
(C) Paragraph (1) of section 36C(a) of such Code (as
redesignated by paragraph (1)) is amended by striking ``this
chapter'' and inserting ``this subtitle''.
(D) Subparagraph (C) of section 129(a)(2) of such Code is
amended by striking ``section 21(e)'' and inserting ``section
36C(e)''.
(E) Paragraph (2) of section 129(b) of such Code is amended
by striking ``section 21(d)(2)'' and inserting ``section
36C(d)(2)''.
(F) Paragraph (1) of section 129(e) of such Code is amended
by striking ``section 21(b)(2)'' and inserting ``section
36C(b)(2)''.
(G) Subsection (e) of section 213 of such Code is amended
by striking ``section 21'' and inserting ``section 36C''.
(H) Subparagraph (A) of section 6211(b)(4) of such Code is
amended by inserting ``36C,'' after ``36B,''.
(I) Subparagraph (H) of section 6213(g)(2) of such Code is
amended by striking ``section 21'' and inserting ``section
36C''.
(J) Subparagraph (L) of section 6213(g)(2) of such Code is
amended by striking ``section 21, 24, or 32,'' and inserting
``section 24, 32, or 36C,''.
(K) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``36C,'' after ``36B,''.
(L) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to
section 36B the following:
``Sec. 36C. Expenses for household and dependent care services
necessary for gainful employment.''.
(M) The table of sections for subpart A of such part IV of
such Code is amended by striking the item relating to section
21.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2015.
SEC. ___. FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS.
(a) In General.--Subchapter A of chapter 1 of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new part:
``PART VII--FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS
``Sec. 59A. Fair share tax.
``SEC. 59A. FAIR SHARE TAX.
``(a) General Rule.--
``(1) Impositition of tax.--In the case of any high-income
taxpayer, there is hereby imposed for a taxable year (in
addition to any other tax imposed by this subtitle) a tax
equal to the product of--
``(A) the amount determined under paragraph (2), and
``(B) a fraction (not to exceed 1)--
``(i) the numerator of which is the excess of--
``(I) the taxpayer's adjusted gross income, over
``(II) the dollar amount in effect under subsection (c)(1),
and
``(ii) the denominator of which is the dollar amount in
effect under subsection (c)(1).
``(2) Amount of tax.--The amount of tax determined under
this paragraph is an amount equal to the excess (if any) of--
``(A) the tentative fair share tax for the taxable year,
over
``(B) the excess of--
``(i) the sum of--
``(I) the regular tax liability (as defined in section
26(b)) for the taxable year, determined without regard to any
tax liability determined under this section,
``(II) the tax imposed by section 55 for the taxable year,
plus
``(III) the payroll tax for the taxable year, over
``(ii) the credits allowable under part IV of subchapter A
(other than sections 27(a), 31, and 34).
``(b) Tentative Fair Share Tax.--For purposes of this
section--
``(1) In general.--The tentative fair share tax for the
taxable year is 30 percent of the excess of--
``(A) the adjusted gross income of the taxpayer, over
``(B) the modified charitable contribution deduction for
the taxable year.
``(2) Modified charitable contribution deduction.--For
purposes of paragraph (1)--
``(A) In general.--The modified charitable contribution
deduction for any taxable year is an amount equal to the
amount which bears the same ratio to the deduction allowable
under section 170 (section 642(c) in the case of a trust or
estate) for such taxable year as--
``(i) the amount of itemized deductions allowable under the
regular tax (as defined in section 55) for such taxable year,
determined after the application of section 68, bears to
``(ii) such amount, determined before the application of
section 68.
``(B) Taxpayer must itemize.--In the case of any individual
who does not elect to itemize deductions for the taxable
year, the modified charitable contribution deduction shall be
zero.
``(c) High-Income Taxpayer.--For purposes of this section--
``(1) In general.--The term `high-income taxpayer' means,
with respect to any taxable year, any taxpayer (other than a
corporation) with an adjusted gross income for such taxable
year in excess of $1,000,000 (50 percent of such amount in
the case of a married individual who files a separate
return).
``(2) Inflation adjustment.--
``(A) In general.--In the case of a taxable year beginning
after 2016, the $1,000,000 amount under paragraph (1) shall
be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, determined by substituting `calendar year 2015'
for `calendar year 1992' in subparagraph (B) thereof.
``(B) Rounding.--If any amount as adjusted under
subparagraph (A) is not a multiple of $10,000, such amount
shall be rounded to the next lowest multiple of $10,000.
``(d) Payroll Tax.--For purposes of this section, the
payroll tax for any taxable year is an amount equal to the
excess of--
``(1) the taxes imposed on the taxpayer under sections
1401, 1411, 3101, 3201, and 3211(a) (to the extent such tax
is attributable to the rate of tax in effect under section
3101) with respect to such taxable year or wages or
compensation received during such taxable year, over
``(2) the deduction allowable under section 164(f) for such
taxable year.
``(e) Special Rule for Estates and Trusts.--For purposes of
this section, in the case of an estate or trust, adjusted
gross income shall be computed in the manner described in
section 67(e).
``(f) Not Treated as Tax Imposed by This Chapter for
Certain Purposes.--The tax imposed under this section shall
not be treated as tax imposed by this chapter for purposes of
determining the amount of any credit under this chapter
(other than the credit allowed under section 27(a)) or for
purposes of section 55.''.
(b) Clerical Amendment.--The table of parts for subchapter
A of chapter 1 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new item:
``Part VII--Fair Share Tax on High-Income Taxpayers''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2015.
SEC. ___. MODIFICATION OF LIMITATION ON EXCESSIVE
REMUNERATION.
(a) Repeal of Performance-based Compensation and Commission
Exceptions for Limitation on Excessive Remuneration.--
[[Page S8389]]
(1) In general.--Paragraph (4) of section 162(m) of the
Internal Revenue Code of 1986 is amended by striking
subparagraphs (B) and (C) and by redesignating subparagraphs
(D) through (G) as subparagraphs (B) through (E),
respectively.
(2) Conforming amendments.--
(A) Section 162(m)(5) of such Code is amended--
(i) by striking ``subparagraphs (B), (C), and (D) thereof''
in subparagraph (E) and inserting ``subparagraph (B)
thereof'', and
(ii) by striking ``subparagraphs (F) and (G)'' in
subparagraph (G) and inserting ``subparagraphs (D) and (E)''.
(B) Section 162(m)(6) of such Code is amended--
(i) by striking ``subparagraphs (B), (C), and (D) thereof''
in subparagraph (D) and inserting ``subparagraph (B)
thereof'', and
(ii) by striking ``subparagraphs (F) and (G)'' in
subparagraph (G) and inserting ``subparagraphs (D) and (E)''.
(b) Expansion of Applicable Employer.--Paragraph (2) of
section 162(m) of the Internal Revenue Code of 1986 is
amended to read as follows:
``(2) Publicly held corporation.--For purposes of this
subsection, the term `publicly held corporation' means any
corporation which is an issuer (as defined in section 3 of
the Securities Exchange Act of 1934 (15 U.S.C. 78c))--
``(A) the securities of which are registered under section
12 of such Act (15 U.S.C. 78l), or
``(B) that is required to file reports under section 15(d)
of such Act (15 U.S.C. 78o(d)).''.
(c) Application to All Current and Former Officers,
Directors, and Employees.--
(1) In general.--Section 162(m) of the Internal Revenue
Code of 1986, as amended by subsection (a), is amended--
(A) by striking ``covered employee'' each place it appears
in paragraphs (1) and (4) and inserting ``covered
individual'', and
(B) by striking ``such employee'' each place it appears in
subparagraphs (A) and (E) of paragraph (4) and inserting
``such individual''.
(2) Covered individual.--Paragraph (3) of section 162(m) of
such Code is amended to read as follows:
``(3) Covered individual.--For purposes of this subsection,
the term `covered individual' means any individual who is an
officer, director, or employee of the taxpayer or a former
officer, director, or employee of the taxpayer.''.
(3) Conforming amendments.--
(A) Section 48D(b)(3)(A) of such Code is amended by
inserting ``(as in effect for taxable years beginning before
January 1, 2016)'' after ``section 162(m)(3)''.
(B) Section 409A(b)(3)(D)(ii) of such Code is amended by
inserting ``(as in effect for taxable years beginning before
January 1, 2016)'' after ``section 162(m)(3)''.
(d) Special Rule for Remuneration Paid to Beneficiaries,
etc.--Paragraph (4) of section 162(m), as amended by
subsection (a), is amended by adding at the end the following
new subparagraph:
``(F) Special rule for remuneration paid to beneficiaries,
etc.--Remuneration shall not fail to be applicable employee
remuneration merely because it is includible in the income
of, or paid to, a person other than the covered individual,
including after the death of the covered individual.''.
(e) Regulatory Authority.--
(1) In general.--Section 162(m) of the Internal Revenue
Code of 1986 is amended by adding at the end the following
new paragraph:
``(7) Regulations.--The Secretary may prescribe such
guidance, rules, or regulations, including with respect to
reporting, as are necessary to carry out the purposes of this
subsection.''.
(2) Conforming amendment.--Paragraph (6) of section 162(m)
of such Code is amended by striking subparagraph (H).
(f) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2015.
SEC. __. MODIFICATIONS TO RULES RELATING TO INVERTED
CORPORATIONS.
(a) In General.--Subsection (b) of section 7874 of the
Internal Revenue Code of 1986 is amended to read as follows:
``(b) Inverted Corporations Treated as Domestic
Corporations.--
``(1) In general.--Notwithstanding section 7701(a)(4), a
foreign corporation shall be treated for purposes of this
title as a domestic corporation if--
``(A) such corporation would be a surrogate foreign
corporation if subsection (a)(2) were applied by substituting
`80 percent' for `60 percent', or
``(B) such corporation is an inverted domestic corporation.
``(2) Inverted domestic corporation.--For purposes of this
subsection, a foreign corporation shall be treated as an
inverted domestic corporation if, pursuant to a plan (or a
series of related transactions)--
``(A) the entity completes after November 30, 2015, the
direct or indirect acquisition of--
``(i) substantially all of the properties held directly or
indirectly by a domestic corporation, or
``(ii) substantially all of the assets of, or substantially
all of the properties constituting a trade or business of, a
domestic partnership, and
``(B) after the acquisition, more than 50 percent of the
stock (by vote or value) of the entity is held--
``(i) in the case of an acquisition with respect to a
domestic corporation, by former shareholders of the domestic
corporation by reason of holding stock in the domestic
corporation, or
``(ii) in the case of an acquisition with respect to a
domestic partnership, by former partners of the domestic
partnership by reason of holding a capital or profits
interest in the domestic partnership.
``(3) Exception for corporations with substantial business
activities in foreign country of organization.--A foreign
corporation described in paragraph (2) shall not be treated
as an inverted domestic corporation if after the acquisition
the expanded affiliated group which includes the entity has
substantial business activities in the foreign country in
which or under the law of which the entity is created or
organized when compared to the total business activities of
such expanded affiliated group. For purposes of subsection
(a)(2)(B)(iii) and the preceding sentence, the term
`substantial business activities' shall have the meaning
given such term under regulations in effect on November 30,
2015, except that the Secretary may issue regulations
increasing the threshold percent in any of the tests under
such regulations for determining if business activities
constitute substantial business activities for purposes of
this paragraph.''.
(b) Conforming Amendments.--
(1) Clause (i) of section 7874(a)(2)(B) of such Code is
amended by striking ``after March 4, 2003,'' and inserting
``after March 4, 2003, and before December 1, 2015,''.
(2) Subsection (c) of section 7874 of such Code is
amended--
(A) in paragraph (2)--
(i) by striking ``subsection (a)(2)(B)(ii)'' and inserting
``subsections (a)(2)(B)(ii) and (b)(2)(B)'', and
(ii) by inserting ``or (b)(2)(A)'' after ``(a)(2)(B)(i)''
in subparagraph (B),
(B) in paragraph (3), by inserting ``or (b)(2)(B), as the
case may be,'' after ``(a)(2)(B)(ii)'',
(C) in paragraph (5), by striking ``subsection
(a)(2)(B)(ii)'' and inserting ``subsections (a)(2)(B)(ii) and
(b)(2)(B)'', and
(D) in paragraph (6), by inserting ``or inverted domestic
corporation, as the case may be,'' after ``surrogate foreign
corporation''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years ending after November 30, 2015.
______