[Congressional Record (Bound Edition), Volume 154 (2008), Part 10]
[House]
[Pages 13728-13742]
[From the U.S. 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.

[[Page 13729]]

  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 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

[[Page 13730]]

     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 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

[[Page 13731]]

     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 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

[[Page 13732]]

     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''.
       (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.

[[Page 13733]]

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).
       ``(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

[[Page 13734]]

     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 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:

[[Page 13735]]

       ``(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 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.

[[Page 13736]]

       ``(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 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

[[Page 13737]]

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, 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

[[Page 13738]]

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 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

[[Page 13739]]

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

[[Page 13740]]

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 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. UDALL of Colorado. Mr. Speaker, I will vote for this bill because 
of the need to protect middle-income families from a massive tax 
increase that will hit them if we do not act to adjust the Alternative 
Minimum Tax, or AMT.
  In technical terms, the bill would extend for one year AMT relief for 
nonrefundable personal credits and increases the AMT exemption amount 
to $69,950 for joint filers and $46,200 for individuals. In real-world 
terms, that means it will prevent a tax increase for more than 28,000 
Colorado households that otherwise would be required to pay more in 
Federal income tax when returns are due next year. And so, Mr. Speaker, 
the bill overall is properly focused on tax relief for middle class 
families--a goal I strongly support.
  Some of our colleagues say they will oppose the bill because it 
includes provisions that would close loopholes and make other changes 
in the tax laws in order to offset this tax relief. They evidently are 
not concerned about the fact that the federal budget is deeply into 
deficit spending.
  I do have some reservations about how the bill seeks to provide AMT 
tax relief without making our Federal deficit worse. But I do not take 
a relaxed attitude to our fiscal problems, and think it is better to 
avoid adding to them--and that is the purpose of the offset provisions 
of the bill
  One such provision would revise current law so investment fund 
managers would no longer pay capital gains rates on the income they 
receive for investment management services income that does not reflect 
a reasonable return on their own invested capital. This change was 
approved by the House last year in H.R. 3996, which I supported. In 
addition, the bill would exclude from the domestic production deduction 
the gross receipts derived from the sale, exchange or other disposition 
of oil, natural gas, or any primary product thereof for large 
integrated oil companies. And it would freeze at 6 percent--the rate 
under current law--the domestic production deduction for income of 
other taxpayers with respect to oil, natural gas or any primary product 
thereof. This is also not new--it is a scaledback version of an 
outright repeal of this deduction for all oil, natural gas or any 
primary product thereof that passed the House last year.
  And the bill would prevent foreign multinational corporations 
incorporated in tax haven countries from avoiding tax on income earned 
in the United States by routing their income through structures in 
which a United States subsidiary corporation makes a deductible payment 
to a country with which the United States has a tax treaty before 
ultimately repatriating these earning in the tax haven country. This is 
a scaled-back version of a previously approved by the House of 
Representatives as part of H.R. 2419. Further, the bill includes a 
proposal that was in the president's latest budget request that will 
require institutions that make payments to merchants in settlement of 
payment card transactions to file an information return with the IRS.
  These provisions are not the only or perhaps even the best way to 
offset the revenue costs of providing a temporary fix to the AMT--but 
the bill's opponents have suggested no alternative except to cut 
unspecified amounts of spending in unspecified parts of the budget or 
to further add to the ``debt tax'' that has already been imposed on our 
children (and their children) by the irresponsible policies of the last 
seven years.
  The Senate will have to consider the legislation further, and it is 
possible that these provisions will be revised. But, in the meantime, 
the bottom line is that today we have the opportunity to provide tax 
relief to hundreds of thousands of middle-class families in Colorado. I 
think that is something I think the House should do without delay, and 
that is why I am voting for this bill.
  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. Mc Crery

  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

[[Page 13741]]

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 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

[[Page 13742]]


     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)
     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.

                          ____________________