[Congressional Record Volume 168, Number 133 (Saturday, August 6, 2022)]
[Senate]
[Pages S4339-S4341]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 5421. Mr. GRASSLEY (for himself and Mr. Young) proposed an 
amendment to amendment SA 5194 proposed by Mr. Schumer to the bill H.R. 
5376, to provide for reconciliation pursuant to title II of S. Con. 
Res. 14; as follows:

       At the end of title I, insert the following:

               Subtitle _--Middle-class Inflation Relief

     SEC. 10_01. MODIFICATION OF CAPITAL GAIN RATES.

       (a) Expansion of Zero Percent Rate.--
       (1) In general.--Section 1(h) of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     paragraph:
       ``(12) Special rule for taxable years beginning in 2023.--
       ``(A) In general.--In the case of any taxable year 
     beginning after 2022 and before 2024, paragraph (1)(B)(i) 
     shall be applied by substituting `below the maximum zero rate 
     amount' for `which would (without regard to this paragraph) 
     be taxed at a rate below 25 percent'.
       ``(B) Maximum zero rate amount.--The maximum zero rate 
     amount shall be--
       ``(i) in the case of a joint return or surviving spouse, 
     $165,000,
       ``(ii) in the case of any other individual (other than an 
     estate or trust), an amount equal to \1/2\ of the amount in 
     effect for the taxable year under clause (i), and
       ``(iii) in the case of an estate or trust, $2,600.
       ``(C) Inflation adjustment.--In the case of any taxable 
     year beginning after 2022, each of the dollar amounts in 
     subparagraph (B) shall be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     subsection (f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 2017' 
     for `calendar year 2016' in subparagraph (A)(ii) thereof.
     If any increase under this subparagraph is not a multiple of 
     $50, such increase shall be rounded to the next lowest 
     multiple of $50.''.
       (2) Conforming amendment.--Paragraph (5) of section 1(j) of 
     such Code is amended by adding at the end the following new 
     subparagraph:
       ``(D) Special rule for certain taxable years.--In the case 
     of any taxable year beginning after 2022 and before 2024, 
     subparagraph (A) shall be applied without regard to clause 
     (i) thereof.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2022.

     SEC. 10_02. PARTIAL EXCLUSION OF CERTAIN INTEREST RECEIVED BY 
                   INDIVIDUALS.

       (a) In General.--Part III of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 (relating to amounts 
     specifically excluded from gross income) is amended by 
     inserting after section 115 the following new section:

     ``SEC. 116. PARTIAL EXCLUSION OF CERTAIN INTEREST RECEIVED BY 
                   INDIVIDUALS.

       ``(a) Exclusion From Gross Income.--Gross income does not 
     include the sum of the amounts received during the taxable 
     year by an individual as qualified interest.
       ``(b) Limitations.--The aggregate amount excluded under 
     subsection (a) for any taxable year shall not exceed $300 
     ($600 in the case of a joint return).
       ``(c) Qualified Interest.--For purposes of this section--
       ``(1) In general.--The term `qualified interest' means any 
     interest other than interest excluded from gross income under 
     any other provision of this chapter.
       ``(2) Special rules for dividends received from certain 
     money market mutual funds.--
       ``(A) In general.--The term `qualified interest' shall 
     include qualified interest-related dividends.
       ``(i) In general.--Except as provided in clause (ii), a 
     qualified interest-related dividend is any dividend or part 
     thereof (other than a capital gain dividend or exempt 
     interest dividend)--

[[Page S4340]]

       ``(I) paid by a regulated investment company regulated as a 
     money market fund under section 270.2a-7 of title 17, Code of 
     Federal Regulations, and
       ``(II) reported by the company as a qualified interest-
     related dividend in written statements furnished to its 
     shareholders.

       ``(ii) Excess reported amounts.--If the aggregate reported 
     amount with respect to the company for any taxable year 
     exceeds the applicable qualified interest of the company for 
     such taxable year, a qualified interest-related dividend is 
     the excess of--

       ``(I) the reported qualified interest-related dividend 
     amount, over
       ``(II) the excess reported amount which is allocable to 
     such reported qualified interest-related dividend amount.

       ``(iii) Allocation of excess reported amount.--

       ``(I) In general.--Except as provided in subclause (II), 
     the excess reported amount (if any) which is allocable to the 
     reported qualified interest-related dividend amount is that 
     portion of the excess reported amount which bears the same 
     ratio to the excess reported amount as the reported qualified 
     interest-related dividend amount bears to the aggregate 
     reported amount.
       ``(II) Special rule for noncalendar year taxpayers.--In the 
     case of any taxable year which does not begin and end in the 
     same calendar year, if the post-December reported amount 
     equals or exceeds the excess reported amount for such taxable 
     year, subclause (I) shall be applied by substituting `post-
     December reported amount' for `aggregate reported amount' and 
     no excess reported amount shall be allocated to any dividend 
     paid on or before December 31 of such taxable year.

       ``(iv) Definitions.--For purposes of this subparagraph--

       ``(I) Reported qualified interest-related dividend 
     amount.--The term `reported qualified interest-related 
     dividend amount' means the amount reported to its 
     shareholders under clause (i) as a qualified interest-related 
     dividend.
       ``(II) Excess reported amount.--The term `excess reported 
     amount' means the excess of the aggregate reported amount 
     over the applicable qualified interest of the company for the 
     taxable year.
       ``(III) Aggregate reported amount.--The term `aggregate 
     reported amount' means the aggregate amount of dividends 
     reported by the company under clause (i) as qualified 
     interest-related dividends for the taxable year (including 
     qualified interest-related dividends paid after the close of 
     the taxable year described in section 855).
       ``(IV) Post-december reported amount.--The term `post-
     December reported amount' means the aggregate reported amount 
     determined by taking into account only dividends paid after 
     December 31 of the taxable year.
       ``(V) Applicable qualified interest.--The term `applicable 
     qualified interest' means interest described in paragraph 
     (1).

       ``(d) Nonresident Aliens Ineligible for Exclusion.--
     Subsection (a) shall not apply to any nonresident alien 
     individual.
       ``(e) Regulations.--The Secretary may prescribe such 
     regulations as are appropriate (including regulations 
     requiring reporting) to apply this section in the case of 
     interest received--
       ``(1) from partnerships and S corporations, and
       ``(2) from a trade or business of the taxpayer.
       ``(f) Termination.--This section shall not apply to any 
     taxable year beginning after December 31, 2024.''.
       (b) Conforming Amendments.--
       (1) Paragraph (2) of section 265(a) of such Code is amended 
     by inserting before the period at the end the following: ``, 
     or to purchase or carry obligations or shares, or to make 
     deposits, to the extent the interest thereon is excludable 
     from gross income under section 116''.
       (2) Subsection (c) of section 584 of such Code is amended 
     by adding at the end the following: ``The proportionate share 
     of each participant in the amount of qualified interest (as 
     defined in section 116) received by the common trust fund 
     shall be considered for purposes of such section as having 
     been received by such participant.''.
       (3) Subsection (a) of section 643 of such Code is amended 
     by redesignating paragraph (7) as paragraph (8) and by 
     inserting after paragraph (6) the following new paragraph:
       ``(7) Qualified interest.--There shall be included the 
     amount of any qualified interest (as defined in section 116) 
     excluded from gross income pursuant to section 116 (reduced 
     by amounts which would be deductible in respect of 
     disbursements allocable to such income but for the provisions 
     of section 265).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2022.

     SEC. 10_03. INFLATION ADJUSTMENT FOR CERTAIN TAX BENEFITS.

       (a) Child Tax Credit.--
       (1) In general.--Subsection (h) of section 24 of such Code 
     is amended by adding at the end the following new paragraph:
       ``(8) Adjustment for inflation.--
       ``(A) In general.--In the case of a taxable year beginning 
     after 2021 and before 2023, the $2,000 amount in paragraph 
     (2) and each of the dollar amounts in paragraph (3) 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 `2020' for `2016' in 
     subparagraph (A)(ii) thereof.
       ``(B) Rounding.--If any increase under subparagraph (A)--
       ``(i) is not a multiple of $100, in the case of the amount 
     in paragraph (2), such increase shall be rounded to the next 
     lowest multiple of $100, or
       ``(ii) is not a multiple of $1,000, in the case of the 
     amounts in paragraph (3), such increase shall be rounded to 
     the next lowest multiple of $1,000.''.
       (2) Partial credit for certain other dependents.--Paragraph 
     (4) of section 24(h) of such Code is amended by adding at the 
     end the following new subparagraph:
       ``(D) Adjustment for inflation.--In the case of a taxable 
     year beginning after 2021 and before 2023, the $500 amount in 
     subparagraph (A) 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 `2020' for `2016' in 
     subparagraph (A)(ii) thereof.
     If any increase under this paragraph is not a multiple of 
     $50, such increase shall be rounded to the next lowest 
     multiple of $50.''.
       (b) Credit for Household and Dependent Care Services.--
     Subsection (e) of section 21 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new 
     paragraph:
       ``(11) Adjustments for inflation.--
       ``(A) In general.--In the case of a taxable year beginning 
     after 2021 and before 2023, the $15,000 amount in subsection 
     (a)(2) and the $3,000 and $6,000 amounts in subsection (c) 
     shall each 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 `2020' for `2016' in 
     subparagraph (A)(ii) thereof.
       ``(B) Rounding.--If any increase under subparagraph (A)--
       ``(i) is not a multiple of $100, in the case of the amounts 
     in subsection (c), such increase shall be rounded to the next 
     lowest multiple of $100, or
       ``(ii) is not a multiple of $1,000, in the case of the 
     amount in subsection (a)(2), such increase shall be rounded 
     to the next lowest multiple of $1,000.''.
       (c) American Opportunity and Lifetime Learning Credits.--
       (1) American opportunity tax credit.--Subsection (b) of 
     section 25A of the Internal Revenue Code of 1986 is amended 
     by adding at the end the following new paragraph:
       ``(5) Adjustment for inflation.--In the case of a taxable 
     year beginning after 2021 and before 2023, the $2,000 and 
     $4,000 amounts in paragraph (1) 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, determined by substituting `2020' for `2016' in 
     subparagraph (A)(ii) thereof.
     If any increase under this paragraph is not a multiple of 
     $100, such increase shall be rounded to the next lowest 
     multiple of $100.''.
       (2) Lifetime learning credit.--Subsection (c) of section 
     25A of the Internal Revenue Code of 1986 is amended by adding 
     at the end the following new paragraph:
       ``(3) Adjustment for inflation.--In the case of a taxable 
     year beginning after 2021 and before 2023, the $10,000 amount 
     in paragraph (1) 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 `2020' for `2016' in 
     subparagraph (A)(ii) thereof.
     If any increase under this paragraph is not a multiple of 
     $100, such increase shall be rounded to the next lowest 
     multiple of $100.''.
       (3) Limitations based on modified adjusted gross income.--
     Subsection (d) of section 25A of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new 
     paragraph:
       ``(3) Adjustment for inflation.--In the case of a taxable 
     year beginning after 2021 and before 2023, each of the dollar 
     amounts in paragraph (1) 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 `2020' for `2016' in 
     subparagraph (A)(ii) thereof.
     If any increase under this paragraph is not a multiple of 
     $1,000, such increase shall be rounded to the next lowest 
     multiple of $1,000.''.
       (d) Deduction for Interest on Education Loans.--
       (1) In general.--Subsection (f) of section 221 of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(f) Adjustments for Inflation.--
       ``(1) Limitation.--In the case of a taxable year beginning 
     after 2021 and before 2023, the $2,500 amount in subsection 
     (b)(1) and the $15,000 and $30,000 amounts in subsection 
     (b)(2)(B)(ii) 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

[[Page S4341]]

     year in which the taxable year begins, determined by 
     substituting `2020' for `2016' in subparagraph (A)(ii) 
     thereof, and
       ``(2) Income thresholds.--In the case of a taxable year 
     beginning after 2002, the $50,000 and $100,000 amounts in 
     subsection (b)(2)(B)(i)(II) 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, determined by substituting `2001' for `2016' in 
     subparagraph (A)(ii) thereof.
       ``(3) Rounding.--If any increase under this subsection--
       ``(A) is not a multiple of $100, in the case of the amount 
     in subsection (b)(1), such increase shall be rounded to the 
     next lowest multiple of $100, or
       ``(B) is not a multiple of $1,000, in the case of the 
     amounts in subsection (b)(2)(B)(ii) and (b)(2)(B)(i)(II), 
     such increase shall be rounded to the next lowest multiple of 
     $1,000.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2021.

     SEC. 10_04. EXTENSION OF LIMITATION ON DEDUCTION FOR STATE 
                   AND LOCAL, ETC., TAXES.

       (a) In General.--Section 164(b)(6) of the Internal Revenue 
     Code of 1986 is amended--
       (1) by striking ``January 1, 2026'' and inserting ``January 
     1, 2027'', and
       (2) by striking ``2025'' in the heading thereof and 
     inserting ``2026''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2022.

     SEC. 10_05. REDUCTION IN ADDITIONAL INTERNAL REVENUE SERVICE 
                   ENFORCEMENT FUNDING.

       Section 10301(a)(1)(A)(i)(II) of this Act is amended by 
     striking ``$45,637,400,000'' and inserting 
     ``$25,637,400,000''.
                                 ______