Middle Class Tax Cut Protection Act of 2012 - Extends through 2014: (1) the general terminating date of the Economic Growth and Tax Relief Reconciliation Act of 2001, and (2) the reduction in the tax rate for dividend and capital gain income enacted by the Jobs and Growth Tax Relief Reconciliation Act of 2003.
Amends the Internal Revenue Code to extend through 2014: (1) the increased American Opportunity tax credit, (2) the increase in the refundable portion of the child tax credit, and (3) the increased earned income tax credit percentage for three or more qualifying children.
Disqualifies taxpayers whose income exceeds $250,000 for such extended tax benefits.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6100 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 6100
To amend the Internal Revenue Code of 1986 to provide a temporary
extension of the 2001 and 2003 tax cuts for the middle class, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 11, 2012
Mr. Braley of Iowa introduced the following bill; which was referred to
the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide a temporary
extension of the 2001 and 2003 tax cuts for the middle class, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Middle Class Tax Cut Protection Act
of 2012''.
SEC. 2. 2-YEAR EXTENSION OF TAX RELIEF FOR MIDDLE CLASS.
(a) Extension of 2001 Tax Relief.--
(1) In general.--Section 901 of the Economic Growth and Tax
Relief Reconciliation Act of 2001 is amended by striking
``December 31, 2012'' both places it appears and inserting
``December 31, 2014''.
(2) Effective date.--The amendment made by this subsection
shall take effect as if included in the enactment of the
Economic Growth and Tax Relief Reconciliation Act of 2001.
(b) Extension of 2003 Tax Relief.--
(1) In general.--Section 303 of the Jobs and Growth Tax
Relief Reconciliation Act of 2003 is amended by striking
``December 31, 2012'' and inserting ``December 31, 2014''.
(2) Effective date.--The amendment made by this section
shall take effect as if included in the enactment of the Jobs
and Growth Tax Relief Reconciliation Act of 2003.
(c) Temporary Extension of 2009 Tax Relief.--
(1) American opportunity tax credit.--
(A) In general.--Section 25A(i) of the Internal
Revenue Code of 1986 is amended by striking ``or 2012''
and inserting ``, 2012, 2013, or 2014''.
(B) Treatment of possessions.--Section 1004(c)(1)
of the American Recovery and Reinvestment Tax Act of
2009 is amended by striking ``and 2012'' each place it
appears and inserting ``2012, 2013, and 2014''.
(C) Child tax credit.--Section 24(d)(4) of such
Code is amended--
(i) by striking ``and 2012'' in the heading
and inserting ``2012, 2013, and 2014'', and
(ii) by striking ``or 2012'' and inserting
``2012, 2013, or 2014''.
(D) Earned income tax credit.--Section 32(b)(3) of
such Code is amended--
(i) by striking ``and 2012'' in the heading
and inserting ``2012, 2013, and 2014'', and
(ii) by striking ``or 2012'' and inserting
``2012, 2013, or 2014''.
SEC. 3. CERTAIN TAX CUTS NOT EXTENDED FOR HIGH INCOME INDIVIDUALS.
(a) Individual Income Tax Rates.--Subsection (i) of section 1 of
the Internal Revenue Code of 1986 is amended by redesignating paragraph
(3) as paragraph (4) and by inserting after paragraph (2) the following
new paragraph:
``(3) 33-Percent rate bracket.--
``(A) In general.--In the case of taxable years
beginning after December 31, 2012--
``(i) paragraph (2) shall not apply in
determining the rates of tax for the fourth
rate bracket and higher rate brackets,
``(ii) the rate of tax under subsections
(a), (b), (c), and (d) on a taxpayer's taxable
income in the fourth rate bracket shall be 33
percent to the extent such income does not
exceed an amount equal to the excess of--
``(I) the applicable amount, over
``(II) the dollar amount at which
such bracket begins, and
``(iii) the 36-percent rate of tax under
such subsections shall apply only to the
taxpayer's taxable income in such bracket in
excess of the amount to which clause (i)
applies.
``(B) Applicable amount.--For purposes of this
paragraph, the term `applicable amount' means the
excess of--
``(i) the applicable threshold, over
``(ii) the sum of the following amounts in
effect for the taxable year:
``(I) the basic standard deduction
(within the meaning of section
63(c)(2)), and
``(II) the exemption amount (within
the meaning of section 151(d)(1)) (or,
in the case of subsection (a), 2 such
exemption amounts).
``(C) Applicable threshold.--For purposes of this
paragraph, the term `applicable threshold' means--
``(i) $250,000 in the case of subsection
(a),
``(ii) $200,000 in the case of subsections
(b) and (c), and
``(iii) \1/2\ the amount applicable under
clause (i) (after adjustment, if any, under
subparagraph (E)) in the case of subsection
(d).
``(D) Fourth rate bracket.--For purposes of this
paragraph, the term `fourth rate bracket' means the
bracket which would (determined without regard to this
paragraph) be the 36-percent rate bracket.
``(E) Inflation adjustment.--For purposes of this
paragraph, a rule similar to the rule of paragraph
(1)(C) shall apply with respect to taxable years
beginning in calendar years after 2012, applied by
substituting `2010' for `1992' in subsection
(f)(3)(B).''.
(b) Reduced Rate on Capital Gains and Dividends.--
(1) In general.--Paragraph (1) of section (1)(h) of such
Code is amended by striking subparagraph (C), by redesignating
subparagraphs (D) and (E) as subparagraphs (E) and (F),
respectively, and by inserting after subparagraph (B) the
following new subparagraphs:
``(C) 15 percent of the lesser of--
``(i) so much of the adjusted net capital
gain (or, if less, taxable income) as exceeds
the amount on which a tax is determined under
subparagraph (B), or
``(ii) the excess (if any) of--
``(I) the amount of taxable income
which would (without regard to this
subsection) be taxed at a rate below 36
percent, over
``(II) the sum of the amounts on
which tax is determined under
subparagraphs (A) and (B),
``(D) 20 percent of the adjusted net capital gain
(or, if less, taxable income) in excess of the sum of
the amounts on which tax is determined under
subparagraphs (B) and (C),''.
(2) Dividends.--Subparagraph (A) of section 1(h)(11) of
such Code is amended by striking ``qualified dividend income''
and inserting ``so much of the qualified dividend income as
does not exceed the excess (if any) of--
``(i) the amount of taxable income which
would (without regard to this subsection) be
taxed at a rate below 36 percent, over
``(ii) taxable income reduced by qualified
dividend income.''.
(3) Minimum tax.--Section 55 of such Code is amended by
adding at the end the following new subsection:
``(f) Application of Maximum Rate of Tax on Net Capital Gain of
Noncorporate Taxpayers.--In the case of taxable years beginning after
December 31, 2012, the amount determined under subparagraph (C) of
subsection (b)(3) shall be the sum of--
``(1) 15 percent of the lesser of--
``(A) so much of the adjusted net capital gain (or,
if less, taxable excess) as exceeds the amount on which
tax is determined under subparagraph (B) of subsection
(b)(3), or
``(B) the excess described in section
1(h)(1)(C)(ii), plus
``(2) 20 percent of the adjusted net capital gain (or, if
less, taxable excess) in excess of the sum of the amounts on
which tax is determined under subsection (b)(3)(B) and
paragraph (1).''.
(4) Conforming amendments.--
(A) The following provisions are amended by
striking ``15 percent'' and inserting ``20 percent'':
(i) Section 1445(e)(1) of such Code.
(ii) The second sentence of section
7518(g)(6)(A) of such Code.
(iii) Section 53511(f)(2) of title 46,
United States Code.
(B) Sections 531 and 541 of the Internal Revenue
Code of 1986 are each amended by striking ``15 percent
of'' and inserting ``the product of the highest rate of
tax under section 1(c) and''.
(C) Section 1445(e)(6) of such Code is amended by
striking ``15 percent (20 percent in the case of
taxable years beginning after December 31, 2011)'' and
inserting ``20 percent''.
(c) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2012.
(2) Withholding.--The amendments made by subparagraphs
(A)(i) and (C) of subsection (b)(4) shall apply to amounts paid
on or after January 1, 2013.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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