[Congressional Record (Bound Edition), Volume 159 (2013), Part 1]
[House]
[Pages 960-961]
[From the U.S. Government Publishing Office, www.gpo.gov]




                               AMENDMENTS

  Under clause 8 of rule XVIII, proprosed amendments were submitted as 
follows:

                                H.R. 444

                       Offered By: Mr. Van Hollen

       Amendment No. 1: Strike all after the enacting clause and 
     insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Balanced Approach to Deficit 
     Reduction''.

     SEC. 2. TABLE OF CONTENTS.

Sec. 1. Short title.
Sec. 2. Table of contents.

    TITLE I--BUDGET PROCESS AMENDMENTS TO REPLACE FISCAL YEAR 2013 
                             SEQUESTRATION

Sec. 101. Repeal and replace the 2013 sequester.
Sec. 102. Protecting veterans programs from sequester.

                     TITLE II--AGRICULTURAL SAVINGS

Sec. 201. One-year extension of agricultural commodity programs, except 
              direct payment programs.

                    TITLE III--OIL AND GAS SUBSIDIES

Sec. 301. Limitation on section 199 deduction attributable to oil, 
              natural gas, or primary products thereof.
Sec. 302. Prohibition on using last-in, first-out accounting for major 
              integrated oil companies.
Sec. 303. Modifications of foreign tax credit rules applicable to major 
              integrated oil companies which are dual capacity 
              taxpayers.

                       TITLE IV--THE BUFFETT RULE

Sec. 401. Fair share tax on high-income taxpayers.

                      TITLE V--SENSE OF THE HOUSE

Sec. 501. Sense of the House on the need for a fair, balanced and 
              bipartisan approach to long-term deficit reduction.

    TITLE I--BUDGET PROCESS AMENDMENTS TO REPLACE FISCAL YEAR 2013 
                             SEQUESTRATION

     SEC. 101. REPEAL AND REPLACE THE 2013 SEQUESTER.

       (a) Elimination of the Fiscal Year 2013 Sequestration for 
     Discretionary Spending.--Section 251A(7)(A) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985 is repealed.
       (b) Elimination of the Fiscal Year 2013 Sequestration for 
     Direct Spending.--Any sequestration order issued by the 
     President under the Balanced Budget and Emergency Deficit 
     Control Act of 1985 to carry out reductions to direct 
     spending for fiscal year 2013 pursuant to section 251A of 
     such Act shall have no force or effect.
       (c) Savings.--The savings set forth by the enactment of 
     title II shall achieve the savings that would otherwise have 
     occurred as a result of the sequestration under section 251A 
     of the Balanced Budget and Emergency Deficit Control Act of 
     1985.

     SEC. 102. PROTECTING VETERANS PROGRAMS FROM SEQUESTER.

       Section 256(e)(2)(E) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 is repealed.

                     TITLE II--AGRICULTURAL SAVINGS

     SEC. 201. ONE-YEAR EXTENSION OF AGRICULTURAL COMMODITY 
                   PROGRAMS, EXCEPT DIRECT PAYMENT PROGRAMS.

       (a) Extension.--Except as provided in subsection (b) and 
     notwithstanding any other provision of law, the authorities 
     provided by each provision of title I of the Food, 
     Conservation, and Energy Act of 2008 (Public Law 110-246; 122 
     Stat. 1651) and each amendment made by that title (and for 
     mandatory programs at such funding levels), as in effect on 
     September 30, 2013, shall continue, and the Secretary of 
     Agriculture shall carry out the authorities, until September 
     30, 2014.
       (b) Termination of Direct Payment Programs.--
       (1) Covered commodities.--The extension provided by 
     subsection (a) shall not apply with respect to the direct 
     payment program under section 1103 of the Food, Conservation, 
     and Energy Act of 2008 (7 U.S.C. 8713).
       (2) Peanuts.--The extension provided by subsection (a) 
     shall not apply with respect to the direct payment program 
     under section 1303 of the Food, Conservation, and Energy Act 
     of 2008 (7 U.S.C. 7953).
       (c) Effective Date.--This section shall take effect on the 
     earlier of--
       (1) the date of the enactment of this Act; and
       (2) September 30, 2013.

                    TITLE III--OIL AND GAS SUBSIDIES

     SEC. 301. LIMITATION ON SECTION 199 DEDUCTION ATTRIBUTABLE TO 
                   OIL, NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.

       (a) Denial of Deduction.--Paragraph (4) of section 199(c) 
     of the Internal Revenue Code of 1986 is amended by adding at 
     the end the following new subparagraph:
       ``(E) Special rule for certain oil and gas income.--In the 
     case of any taxpayer who is a major integrated oil company 
     (as defined in section 167(h)(5)(B)) for the taxable year, 
     the term `domestic production gross receipts' shall not 
     include gross receipts from the production, transportation, 
     or distribution of oil, natural gas, or any primary product 
     (within the meaning of subsection (d)(9)) thereof.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years ending after December 31, 2013.

     SEC. 302. PROHIBITION ON USING LAST-IN, FIRST-OUT ACCOUNTING 
                   FOR MAJOR INTEGRATED OIL COMPANIES.

       (a) In General.--Section 472 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(h) Major Integrated Oil Companies.--Notwithstanding any 
     other provision of this section, a major integrated oil 
     company (as defined in section 167(h)(5)(B)) may not use the 
     method provided in subsection (b) in inventorying of any 
     goods.''.
       (b) Effective Date and Special Rule.--
       (1) In general.--The amendment made by subsection (a) shall 
     apply to taxable years ending after December 31, 2013.
       (2) Change in method of accounting.--In the case of any 
     taxpayer required by the amendment made by this section to 
     change its method of accounting for its first taxable year 
     ending after December 31, 2013--
       (A) such change shall be treated as initiated by the 
     taxpayer,
       (B) such change shall be treated as made with the consent 
     of the Secretary of the Treasury, and
       (C) the net amount of the adjustments required to be taken 
     into account by the taxpayer under section 481 of the 
     Internal Revenue Code of 1986 shall be taken into account 
     ratably over a period (not greater than 8 taxable years) 
     beginning with such first taxable year.

     SEC. 303. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 
                   APPLICABLE TO MAJOR INTEGRATED OIL COMPANIES 
                   WHICH ARE DUAL CAPACITY TAXPAYERS.

       (a) In General.--Section 901 of the Internal Revenue Code 
     of 1986 is amended by redesignating subsection (n) as 
     subsection (o)

[[Page 961]]

     and by inserting after subsection (m) the following new 
     subsection:
       ``(n) Special Rules Relating to Major Integrated Oil 
     Companies Which Are Dual Capacity Taxpayers.--
       ``(1) General rule.--Notwithstanding any other provision of 
     this chapter, any amount paid or accrued by a dual capacity 
     taxpayer which is a major integrated oil company (as defined 
     in section 167(h)(5)(B)) to a foreign country or possession 
     of the United States for any period shall not be considered a 
     tax--
       ``(A) if, for such period, the foreign country or 
     possession does not impose a generally applicable income tax, 
     or
       ``(B) to the extent such amount exceeds the amount 
     (determined in accordance with regulations) which--
       ``(i) is paid by such dual capacity taxpayer pursuant to 
     the generally applicable income tax imposed by the country or 
     possession, or
       ``(ii) would be paid if the generally applicable income tax 
     imposed by the country or possession were applicable to such 
     dual capacity taxpayer.

     Nothing in this paragraph shall be construed to imply the 
     proper treatment of any such amount not in excess of the 
     amount determined under subparagraph (B).
       ``(2) Dual capacity taxpayer.--For purposes of this 
     subsection, the term `dual capacity taxpayer' means, with 
     respect to any foreign country or possession of the United 
     States, a person who--
       ``(A) is subject to a levy of such country or possession, 
     and
       ``(B) receives (or will receive) directly or indirectly a 
     specific economic benefit (as determined in accordance with 
     regulations) from such country or possession.
       ``(3) Generally applicable income tax.--For purposes of 
     this subsection--
       ``(A) In general.--The term `generally applicable income 
     tax' means an income tax (or a series of income taxes) which 
     is generally imposed under the laws of a foreign country or 
     possession on income derived from the conduct of a trade or 
     business within such country or possession.
       ``(B) Exceptions.--Such term shall not include a tax unless 
     it has substantial application, by its terms and in practice, 
     to--
       ``(i) persons who are not dual capacity taxpayers, and
       ``(ii) persons who are citizens or residents of the foreign 
     country or possession.''.
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxes paid or accrued in taxable years beginning 
     after the date of the enactment of this Act.
       (2) Contrary treaty obligations upheld.--The amendments 
     made by this section shall not apply to the extent contrary 
     to any treaty obligation of the United States.

                       TITLE IV--THE BUFFETT RULE

     SEC. 401. FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS.

       (a) In General.--Subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new part:

          ``PART VII--FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS

     ``SEC. 59B. FAIR SHARE TAX.

       ``(a) General Rule.--
       ``(1) Phase-in of tax.--In the case of any high-income 
     taxpayer, there is hereby imposed for a taxable year (in 
     addition to any other tax imposed by this subtitle) a tax 
     equal to the product of--
       ``(A) the amount determined under paragraph (2), and
       ``(B) a fraction (not to exceed 1)--
       ``(i) the numerator of which is the excess of--

       ``(I) the taxpayer's adjusted gross income, over
       ``(II) the dollar amount in effect under subsection (c)(1), 
     and

       ``(ii) the denominator of which is the dollar amount in 
     effect under subsection (c)(1).
       ``(2) Amount of tax.--The amount of tax determined under 
     this paragraph is an amount equal to the excess (if any) of--
       ``(A) the tentative fair share tax for the taxable year, 
     over
       ``(B) the excess of--
       ``(i) the sum of--

       ``(I) the regular tax liability (as defined in section 
     26(b)) for the taxable year,
       ``(II) the tax imposed by section 55 for the taxable year, 
     plus
       ``(III) the payroll tax for the taxable year, over

       ``(ii) the credits allowable under part IV of subchapter A 
     (other than sections 27(a), 31, and 34).
       ``(b) Tentative Fair Share Tax.--For purposes of this 
     section--
       ``(1) In general.--The tentative fair share tax for the 
     taxable year is 30 percent of the excess of--
       ``(A) the adjusted gross income of the taxpayer, over
       ``(B) the modified charitable contribution deduction for 
     the taxable year.
       ``(2) Modified charitable contribution deduction.--For 
     purposes of paragraph (1)--
       ``(A) In general.--The modified charitable contribution 
     deduction for any taxable year is an amount equal to the 
     amount which bears the same ratio to the deduction allowable 
     under section 170 (section 642(c) in the case of a trust or 
     estate) for such taxable year as--
       ``(i) the amount of itemized deductions allowable under the 
     regular tax (as defined in section 55) for such taxable year, 
     determined after the application of section 68, bears to
       ``(ii) such amount, determined before the application of 
     section 68.
       ``(B) Taxpayer must itemize.--In the case of any individual 
     who does not elect to itemize deductions for the taxable 
     year, the modified charitable contribution deduction shall be 
     zero.
       ``(c) High-income Taxpayer.--For purposes of this section--
       ``(1) In general.--The term `high-income taxpayer' means, 
     with respect to any taxable year, any taxpayer (other than a 
     corporation) with an adjusted gross income for such taxable 
     year in excess of $1,000,000 (50 percent of such amount in 
     the case of a married individual who files a separate 
     return).
       ``(2) Inflation adjustment.--
       ``(A) In general.--In the case of a taxable year beginning 
     after 2014, the $1,000,000 amount under paragraph (1) shall 
     be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 2013' 
     for `calendar year 1992' in subparagraph (B) thereof.
       ``(B) Rounding.--If any amount as adjusted under 
     subparagraph (A) is not a multiple of $10,000, such amount 
     shall be rounded to the next lowest multiple of $10,000.
       ``(d) Payroll Tax.--For purposes of this section, the 
     payroll tax for any taxable year is an amount equal to the 
     excess of--
       ``(1) the taxes imposed on the taxpayer under sections 
     1401, 1411, 3101, 3201, and 3211(a) (to the extent such taxes 
     are attributable to the rate of tax in effect under section 
     3101) with respect to such taxable year or wages or 
     compensation received during the taxable year, over
       ``(2) the deduction allowable under section 164(f) for such 
     taxable year.
       ``(e) Special Rule for Estates and Trusts.--For purposes of 
     this section, in the case of an estate or trust, adjusted 
     gross income shall be computed in the manner described in 
     section 67(e).
       ``(f) Not Treated as Tax Imposed by This Chapter for 
     Certain Purposes.--The tax imposed under this section shall 
     not be treated as tax imposed by this chapter for purposes of 
     determining the amount of any credit under this chapter 
     (other than the credit allowed under section 27(a)) or for 
     purposes of section 55.''.
       (b) Conforming Amendment.--Section 26(b)(2) of such Code is 
     amended by redesignating subparagraphs (C) through (X) as 
     subparagraphs (D) through (Y), respectively, and by inserting 
     after subparagraph (B) the following new subparagraph:
       ``(C) section 59B (relating to fair share tax),''.
       (c) Clerical Amendment.--The table of parts for subchapter 
     A of chapter 1 of such Code is amended by adding at the end 
     the following new item:

``Part VII--Fair Share Tax on High-Income Taxpayers''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.

                      TITLE V--SENSE OF THE HOUSE

     SEC. 501. SENSE OF THE HOUSE ON THE NEED FOR A FAIR, BALANCED 
                   AND BIPARTISAN APPROACH TO LONG-TERM DEFICIT 
                   REDUCTION.

       (a) The House finds that--
       (1) every bipartisan commission has recommended--and the 
     majority of Americans agree--that we should take a balanced, 
     bipartisan approach to reducing the deficit that addresses 
     both revenue and spending; and
       (2) sequestration is a meat-ax approach to deficit 
     reduction that imposes deep and mindless cuts, regardless of 
     their impact on vital services and investments.
       (b) It is the sense of the House that the Congress should 
     replace the entire 10-year sequester established by the 
     Budget Control Act of 2011 with a balanced approach that 
     would increase revenues without increasing the tax burden on 
     middle-income Americans, and decrease long-term spending 
     while maintaining the Medicare guarantee, protecting Social 
     Security and a strong social safety net, and making strategic 
     investments in education, science, research, and critical 
     infrastructure necessary to compete in the global economy.