I 

112TH CONGRESS 

1ST SESSION H. R. 417 

To amend the Internal Revenue Code of 1986 to repeal the expansion of 

certain information reporting requirements to corporations and to payments for property, to impose a surcharge on high income taxpayers, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 25, 2011 

Mr. OWENS (for himself, Mr. TONKO, Ms. PINGREE of Maine, Mr. LOEBSACK, 

Mr. KEATING, Mr. WELCH, Mr. DEFAZIO, Ms. JACKSON LEE of Texas, 

Ms. HIRONO, Mr. PASCRELL, Mr. HOLT, Mr. WEINER, Mr. MICHAUD, 

and Mr. HINCHEY) 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 repeal 

the expansion of certain information reporting requirements to corporations and to payments for property, 

to impose a surcharge on high income taxpayers, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Small Business Tax 

5 Relief Act of 2011’’. 


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1 SEC. 2. REPEAL OF EXPANSION OF CERTAIN INFORMATION 

2 REPORTING REQUIREMENTS TO CORPORA3 TIONS AND TO PAYMENTS FOR PROPERTY. 

4 Section 9006 of the Patient Protection and Afford5 able Care Act is repealed. Each provision of law amended 

6 by such section is amended to read as such provision 

7 would read if such section had never been enacted. 

8 SEC. 3. SURCHARGE ON HIGH INCOME INDIVIDUALS. 

9 (a) IN GENERAL.—Subchapter A of chapter 1 of the 

10 Internal Revenue Code of 1986 is amended by adding at 

11 the end the following new part: 

12 ‘‘PART VIII—SURCHARGE ON HIGH INCOME 

13 INDIVIDUALS 

‘‘Sec. 59C. Surcharge on high income individuals. 

14 ‘‘SEC. 59C. SURCHARGE ON HIGH INCOME INDIVIDUALS. 

15 ‘‘(a) GENERAL RULE.—In the case of a taxpayer 

16 other than a corporation, there is hereby imposed (in addi17 tion to any other tax imposed by this subtitle) a tax equal 

18 to 5.4 percent of so much of the modified adjusted gross 

19 income of the taxpayer as exceeds $1,000,000. 

20 ‘‘(b) TAXPAYERS NOT MAKING A JOINT RETURN.— 

21 In the case of any taxpayer other than a taxpayer making 

22 a joint return under section 6013 or a surviving spouse 

23 (as defined in section 2(a)), subsection (a) shall be applied 

24 by substituting for the dollar amount therein (after any 


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1 increase determined under subsection (d)) a dollar amount 

2 equal to— 

3 ‘‘(1) 50 percent of the dollar amount so in ef4 fect in the case of a married individual filing a sepa5 rate return, and 

6 ‘‘(2) 80 percent of the dollar amount so in ef7 fect in any other case. 

8 ‘‘(c) MODIFIED ADJUSTED GROSS INCOME.—For 

9 purposes of this section, the term ‘modified adjusted gross 

10 income’ means adjusted gross income reduced by any de11 duction (not taken into account in determining adjusted 

12 gross income) allowed for investment interest (as defined 

13 in section 163(d)). In the case of an estate or trust, ad14 justed gross income shall be determined as provided in sec15 tion 67(e). 

16 ‘‘(d) INFLATION ADJUSTMENTS.— 

17 ‘‘(1) IN GENERAL.—In the case of taxable years 

18 beginning after 2011, the dollar amount in sub19 section (a) shall be increased by an amount equal 

20 to— 

21 ‘‘(A) such dollar amount, multiplied by 

22 ‘‘(B) the cost-of-living adjustment deter23 mined under section 1(f)(3) for the calendar 

24 year in which the taxable year begins, by subVerDate Mar 15 2010 03:21 Feb 02, 2011 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H417.IH H417

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1 stituting ‘calendar year 2010’ for ‘calendar year 

2 1992’ in subparagraph (B) thereof. 

3 ‘‘(2) ROUNDING.—If any amount as adjusted 

4 under paragraph (1) is not a multiple of $5,000, 

5 such amount shall be rounded to the next lowest 

6 multiple of $5,000. 

7 ‘‘(e) SPECIAL RULES.— 

8 ‘‘(1) NONRESIDENT ALIEN.—In the case of a 

9 nonresident alien individual, only amounts taken 

10 into account in connection with the tax imposed 

11 under section 871(b) shall be taken into account 

12 under this section. 

13 ‘‘(2) CITIZENS AND RESIDENTS LIVING

14 ABROAD.—The dollar amount in effect under sub15 section (a) (after the application of subsections (b) 

16 and (d)) shall be decreased by the excess of— 

17 ‘‘(A) the amounts excluded from the tax18 payer’s gross income under section 911, over 

19 ‘‘(B) the amounts of any deductions or ex20 clusions disallowed under section 911(d)(6) 

21 with respect to the amounts described in sub22 paragraph (A). 

23 ‘‘(3) CHARITABLE TRUSTS.—Subsection (a) 

24 shall not apply to a trust all the unexpired interests 


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1 in which are devoted to one or more of the purposes 

2 described in section 170(c)(2)(B). 

3 ‘‘(4) NOT TREATED AS TAX IMPOSED BY THIS

4 CHAPTER FOR CERTAIN PURPOSES.—The tax im5 posed under this section shall not be treated as tax 

6 imposed by this chapter for purposes of determining 

7 the amount of any credit under this chapter or for 

8 purposes of section 55.’’. 

9 (b) CLERICAL AMENDMENT.—The table of parts for 

10 subchapter A of chapter 1 of such Code is amended by 

11 adding at the end the following new item: 

‘‘PART VIII. SURCHARGE ON HIGH INCOME INDIVIDUALS.’’. 

12 (c) SECTION 15 NOT TO APPLY.—The amendment 

13 made by subsection (a) shall not be treated as a change 

14 in a rate of tax for purposes of section 15 of the Internal 

15 Revenue Code of 1986. 

16 (d) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to taxable years beginning after 

18 December 31, 2010. 

19 (e) DEFICIT REDUCTION.—Revenues received pursu20 ant to the amendments made by this section shall be de21 posited in the Treasury and used for deficit reduction, ex22 cept that in the case of a fiscal year for which there is 

23 no Federal budget deficit (determined after taking into ac24 count the repeal and amendments made by section 2), 

25 such amounts shall be used to reduce the Federal debt 


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1 (in such manner as the Secretary of the Treasury con2 siders appropriate). 

Æ 


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