I 

113TH CONGRESS 

1ST SESSION H. R. 2060 

To amend the Balanced Budget and Emergency Deficit Control Act of 1985 

to restore for the remainder of fiscal year 2013 budgetary resources 

sequestered on March 1, 2013, for that fiscal year, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 20, 2013 

Mr. VAN HOLLEN introduced the following bill; which was referred to the 

Committee on Ways and Means, and in addition to the Committees on 

the Budget and Agriculture, for a period to be subsequently determined 

by the Speaker, in each case for consideration of such provisions as fall 

within the jurisdiction of the committee concerned 

A BILL 

To amend the Balanced Budget and Emergency Deficit Control Act of 1985 to restore for the remainder of fiscal 

year 2013 budgetary resources sequestered on March 

1, 2013, for that fiscal year, 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 ‘‘Stop the Sequester 

5 Job Loss Now Act Through 2014’’. 

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1 SEC. 2. TABLE OF CONTENTS. 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

TITLE I—BUDGET PROCESS AMENDMENTS 

Sec. 101. Repeal the 2013 and 2014 sequesters. 

Sec. 102. Reduction of Defense Discretionary Limits. 

Sec. 103. 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. Prohibition on using last-in, first-out accounting for major integrated 

oil companies. 

Sec. 302. Deduction for income attributable to domestic production activities 

not allowed with respect to oil and gas activities of major integrated oil companies. 

Sec. 303. Limitation on deduction for intangible drilling and development costs 

of major integrated oil companies. 

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. 

2 TITLE I—BUDGET PROCESS 

3 AMENDMENTS 

4 SEC. 101. REPEAL THE 2013 AND 2014 SEQUESTERS. 

5 (a) CALCULATION OF TOTAL DEFICIT REDUCTION

6 AND ALLOCATION TO FUNCTIONS.—(1) Section 251A(3) 

7 of the Balanced Budget and Emergency Deficit Control 

8 Act of 1985 (2 U.S.C. 901a) is amended by striking 

9 ‘‘2013’’ and inserting ‘‘2015’’. 

10 (2) Paragraph (4) of such section is amended by 

11 striking ‘‘2014’’ and inserting ‘‘2015’’. 

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1 (3) Paragraphs (5) and (6) of such section are 

2 amended by striking ‘‘2013’’ and inserting ‘‘2015’’. 

3 (b) DEFENSE AND NONDEFENSE FUNCTION REDUC4 TIONS.—Paragraphs (5) and (6) of section 251A of the 

5 Balanced Budget and Emergency Deficit Control Act of 

6 1985 are amended by striking ‘‘2013’’ and inserting 

7 ‘‘2015’’ each place it appears. 

8 (c) IMPLEMENTING DISCRETIONARY REDUCTIONS.— 

9 Section 251A(7)(B) of such Act is amended by striking 

10 ‘‘2014’’ and inserting ‘‘2015’’ each place it appears. 

11 (d) RESTORATION OF SEQUESTERED FUNDS.—Not12 withstanding the Presidential sequestration order for fis13 cal year 2013 issued under section 251A of the Balanced 

14 Budget and Emergency Deficit Act of 1985, on and after 

15 the date of the enactment of this Act, the budgetary re16 sources sequestered under such order shall be available for 

17 obligation for the same purpose, in the same amount as 

18 otherwise would have been available for the period begin19 ning on the date of enactment of this Act and before Octo20 ber 1, 2013, and in the same manner as if such order 

21 had not been issued. 

22 (e) CONFORMING CHANGE.—Upon the date of enact23 ment of this Act, the report entitled ‘‘OMB Sequestration 

24 Preview Report to the President and Congress for Fiscal 

25 Year 2014 and OMB Report to the Congress on the Joint 

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1 Committee Reductions for Fiscal Year 2014’’, issued on 

2 April 10, 2013, and corrected on May 20, 2013, shall have 

3 no force or effect. 

4 SEC. 102. REDUCTION OF DEFENSE DISCRETIONARY LIM5 ITS. 

6 The discretionary limits set forth in section 251(c) 

7 of the Balanced Budget and Emergency Deficit Control 

8 Act of 1985 for the security category for fiscal years 2017 

9 through 2021 are replaced with the following limits: for 

10 fiscal year 2017, $586,000,000,000; for fiscal year 2018, 

11 $595,000,000,000; for fiscal year 2019, 

12 $604,000,000,000; for fiscal year 2020, 

13 $614,000,000,000; and for fiscal year 2021, 

14 $624,000,000,000. 

15 SEC. 103. PROTECTING VETERANS PROGRAMS FROM SE16 QUESTER. 

17 Section 256(e)(2)(E) of the Balanced Budget and 

18 Emergency Deficit Control Act of 1985 is repealed. 

19 TITLE II—AGRICULTURAL 

20 SAVINGS 

21 SEC. 201. ONE-YEAR EXTENSION OF AGRICULTURAL COM22 MODITY PROGRAMS, EXCEPT DIRECT PAY23 MENT PROGRAMS. 

24 (a) EXTENSION.—Except as provided in subsection 

25 (b) and notwithstanding any other provision of law, the 

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1 authorities provided by each provision of title I of the 

2 Food, Conservation, and Energy Act of 2008 (Public Law 

3 110–246; 122 Stat. 1651) and each amendment made by 

4 that title (and for mandatory programs at such funding 

5 levels), as in effect on September 30, 2013, shall continue, 

6 and the Secretary of Agriculture shall carry out the au7 thorities, until September 30, 2014. 

8 (b) TERMINATION OF DIRECT PAYMENT PRO9 GRAMS.— 

10 (1) COVERED COMMODITIES.—The extension 

11 provided by subsection (a) shall not apply with re12 spect to the direct payment program under section 

13 1103 of the Food, Conservation, and Energy Act of 

14 2008 (7 U.S.C. 8713). 

15 (2) PEANUTS.—The extension provided by sub16 section (a) shall not apply with respect to the direct 

17 payment program under section 1303 of the Food, 

18 Conservation, and Energy Act of 2008 (7 U.S.C. 

19 7953). 

20 (c) EFFECTIVE DATE.—This section shall take effect 

21 on the earlier of— 

22 (1) the date of the enactment of this Act; and 

23 (2) September 30, 2013. 

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1 TITLE III—OIL AND GAS 

2 SUBSIDIES 

3 SEC. 301. PROHIBITION ON USING LAST-IN, FIRST-OUT AC4 COUNTING FOR MAJOR INTEGRATED OIL 

5 COMPANIES. 

6 (a) IN GENERAL.—Section 472 of the Internal Rev7 enue Code of 1986 is amended by adding at the end the 

8 following new subsection: 

9 ‘‘(h) MAJOR INTEGRATED OIL COMPANIES.—Not10 withstanding any other provision of this section, a major 

11 integrated oil company (as defined in section 

12 167(h)(5)(B)) may not use the method provided in sub13 section (b) in inventorying of any goods.’’. 

14 (b) EFFECTIVE DATE AND SPECIAL RULE.— 

15 (1) IN GENERAL.—The amendment made by 

16 subsection (a) shall apply to taxable years beginning 

17 after the date of the enactment of this Act. 

18 (2) CHANGE IN METHOD OF ACCOUNTING.—In 

19 the case of any taxpayer required by the amendment 

20 made by this section to change its method of ac21 counting for its first taxable year beginning after the 

22 date of the enactment of this Act— 

23 (A) such change shall be treated as initi24 ated by the taxpayer, 

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1 (B) such change shall be treated as made 

2 with the consent of the Secretary of the Treas3 ury, and 

4 (C) the net amount of the adjustments re5 quired to be taken into account by the taxpayer 

6 under section 481 of the Internal Revenue Code 

7 of 1986 shall be taken into account ratably over 

8 a period (not greater than 8 taxable years) be9 ginning with such first taxable year. 

10 SEC. 302. DEDUCTION FOR INCOME ATTRIBUTABLE TO DO11 MESTIC PRODUCTION ACTIVITIES NOT AL12 LOWED WITH RESPECT TO OIL AND GAS AC13 TIVITIES OF MAJOR INTEGRATED OIL COM14 PANIES. 

15 (a) IN GENERAL.—Subparagraph (A) of section 

16 199(d)(9) of the Internal Revenue Code of 1986 is amend17 ed by inserting ‘‘(9 percent in the case of any major inte18 grated oil company (as defined in section 167(h)(5)(B)))’’ 

19 after ‘‘3 percent’’. 

20 (b) EFFECTIVE DATE.—The amendment made by 

21 subsection (a) shall apply to taxable years beginning after 

22 the date of the enactment of this Act. 

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1 SEC. 303. LIMITATION ON DEDUCTION FOR INTANGIBLE 

2 DRILLING AND DEVELOPMENT COSTS OF 

3 MAJOR INTEGRATED OIL COMPANIES. 

4 (a) IN GENERAL.—Section 263(c) of the Internal 

5 Revenue Code of 1986 is amended by adding at the end 

6 the following new sentence: ‘‘This subsection shall not 

7 apply to amounts paid or incurred by a taxpayer in any 

8 taxable year in which such taxpayer is a major integrated 

9 oil company (as defined in section 167(h)(5)(B)).’’. 

10 (b) EFFECTIVE DATE.—The amendment made by 

11 this section shall apply to amounts paid or incurred in tax12 able years beginning after the date of the enactment of 

13 this Act. 

14 TITLE IV—THE BUFFETT RULE 

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

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

17 Internal Revenue Code of 1986 is amended by adding at 

18 the end the following new part: 

19 ‘‘PART VII—FAIR SHARE TAX ON HIGH-INCOME 

20 TAXPAYERS 

21 ‘‘SEC. 59B. FAIR SHARE TAX. 

22 ‘‘(a) GENERAL RULE.— 

23 ‘‘(1) PHASE-IN OF TAX.—In the case of any 

24 high-income taxpayer, there is hereby imposed for a 

25 taxable year (in addition to any other tax imposed 

26 by this subtitle) a tax equal to the product of— 

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1 ‘‘(A) the amount determined under para2 graph (2), and 

3 ‘‘(B) a fraction (not to exceed 1)— 

4 ‘‘(i) the numerator of which is the ex5 cess of— 

6 ‘‘(I) the taxpayer’s adjusted 

7 gross income, over 

8 ‘‘(II) the dollar amount in effect 

9 under subsection (c)(1), and 

10 ‘‘(ii) the denominator of which is the 

11 dollar amount in effect under subsection 

12 (c)(1). 

13 ‘‘(2) AMOUNT OF TAX.—The amount of tax de14 termined under this paragraph is an amount equal 

15 to the excess (if any) of— 

16 ‘‘(A) the tentative fair share tax for the 

17 taxable year, over 

18 ‘‘(B) the excess of— 

19 ‘‘(i) the sum of— 

20 ‘‘(I) the regular tax liability (as 

21 defined in section 26(b)) for the tax22 able year, 

23 ‘‘(II) the tax imposed by section 

24 55 for the taxable year, plus 

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1 ‘‘(III) the payroll tax for the tax2 able year, over 

3 ‘‘(ii) the credits allowable under part 

4 IV of subchapter A (other than sections 

5 27(a), 31, and 34). 

6 ‘‘(b) TENTATIVE FAIR SHARE TAX.—For purposes 

7 of this section— 

8 ‘‘(1) IN GENERAL.—The tentative fair share tax 

9 for the taxable year is 30 percent of the excess of— 

10 ‘‘(A) the adjusted gross income of the tax11 payer, over 

12 ‘‘(B) the modified charitable contribution 

13 deduction for the taxable year. 

14 ‘‘(2) MODIFIED CHARITABLE CONTRIBUTION

15 DEDUCTION.—For purposes of paragraph (1)— 

16 ‘‘(A) IN GENERAL.—The modified chari17 table contribution deduction for any taxable 

18 year is an amount equal to the amount which 

19 bears the same ratio to the deduction allowable 

20 under section 170 (section 642(c) in the case of 

21 a trust or estate) for such taxable year as— 

22 ‘‘(i) the amount of itemized deduc23 tions allowable under the regular tax (as 

24 defined in section 55) for such taxable 

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1 year, determined after the application of 

2 section 68, bears to 

3 ‘‘(ii) such amount, determined before 

4 the application of section 68. 

5 ‘‘(B) TAXPAYER MUST ITEMIZE.—In the 

6 case of any individual who does not elect to 

7 itemize deductions for the taxable year, the 

8 modified charitable contribution deduction shall 

9 be zero. 

10 ‘‘(c) HIGH-INCOME TAXPAYER.—For purposes of this 

11 section— 

12 ‘‘(1) IN GENERAL.—The term ‘high-income tax13 payer’ means, with respect to any taxable year, any 

14 taxpayer (other than a corporation) with an adjusted 

15 gross income for such taxable year in excess of 

16 $1,000,000 (50 percent of such amount in the case 

17 of a married individual who files a separate return). 

18 ‘‘(2) INFLATION ADJUSTMENT.— 

19 ‘‘(A) IN GENERAL.—In the case of a tax20 able year beginning after 2014, the $1,000,000 

21 amount under paragraph (1) shall be increased 

22 by an amount equal to— 

23 ‘‘(i) such dollar amount, multiplied by 

24 ‘‘(ii) the cost-of-living adjustment de25 termined under section 1(f)(3) for the calmstockstill on DSK4VPTVN1PROD with BILLS

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1 endar year in which the taxable year be2 gins, determined by substituting ‘calendar 

3 year 2013’ for ‘calendar year 1992’ in sub4 paragraph (B) thereof. 

5 ‘‘(B) ROUNDING.—If any amount as ad6 justed under subparagraph (A) is not a multiple 

7 of $10,000, such amount shall be rounded to 

8 the next lowest multiple of $10,000. 

9 ‘‘(d) PAYROLL TAX.—For purposes of this section, 

10 the payroll tax for any taxable year is an amount equal 

11 to the excess of— 

12 ‘‘(1) the taxes imposed on the taxpayer under 

13 sections 1401, 1411, 3101, 3201, and 3211(a) (to 

14 the extent such taxes are attributable to the rate of 

15 tax in effect under section 3101) with respect to 

16 such taxable year or wages or compensation received 

17 during the taxable year, over 

18 ‘‘(2) the deduction allowable under section 

19 164(f) for such taxable year. 

20 ‘‘(e) SPECIAL RULE FOR ESTATES AND TRUSTS.— 

21 For purposes of this section, in the case of an estate or 

22 trust, adjusted gross income shall be computed in the 

23 manner described in section 67(e). 

24 ‘‘(f) NOT TREATED AS TAX IMPOSED BY THIS CHAP25 TER FOR CERTAIN PURPOSES.—The tax imposed under 

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1 this section shall not be treated as tax imposed by this 

2 chapter for purposes of determining the amount of any 

3 credit under this chapter (other than the credit allowed 

4 under section 27(a)) or for purposes of section 55.’’. 

5 (b) CONFORMING AMENDMENT.—Section 26(b)(2) of 

6 such Code is amended by redesignating subparagraphs (C) 

7 through (X) as subparagraphs (D) through (Y), respec8 tively, and by inserting after subparagraph (B) the fol9 lowing new subparagraph: 

10 ‘‘(C) section 59B (relating to fair share 

11 tax),’’. 

12 (c) CLERICAL AMENDMENT.—The table of parts for 

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

14 adding at the end the following new item: 

‘‘Part VII—Fair Share Tax on High-Income Taxpayers’’. 

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

16 this section shall apply to taxable years beginning after 

17 December 31, 2013. 

18 TITLE V—SENSE OF THE HOUSE 

19 SEC. 501. SENSE OF THE HOUSE ON THE NEED FOR A FAIR, 

20 BALANCED AND BIPARTISAN APPROACH TO 

21 LONG-TERM DEFICIT REDUCTION. 

22 (a) The House finds that— 

23 (1) every bipartisan commission has rec24 ommended—and the majority of Americans agree— 

25 that we should take a balanced, bipartisan approach 

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1 to reducing the deficit that addresses both revenue 

2 and spending; and 

3 (2) sequestration is a meat-ax approach to def4 icit reduction that imposes deep and mindless cuts, 

5 regardless of their impact on vital services and in6 vestments. 

7 (b) It is the sense of the House that the Congress 

8 should replace the entire 10-year sequester established by 

9 the Budget Control Act of 2011 with a balanced approach 

10 that would increase revenues without increasing the tax 

11 burden on middle-income Americans, and decrease long12 term spending while maintaining the Medicare guarantee, 

13 protecting Social Security and a strong social safety net, 

14 and making strategic investments in education, science, 

15 research, and critical infrastructure necessary to compete 

16 in the global economy. 

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