II 

Calendar No. 244 

112TH CONGRESS 

1ST SESSION S. 1931 

To provide civilian payroll tax relief, to reduce the Federal budget deficit, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 30, 2011 

Mr. HELLER introduced the following bill; which was read the first time 

DECEMBER 1, 2011 

Read the second time and placed on the calendar 

A BILL 

To provide civilian payroll tax relief, to reduce the Federal 

budget deficit, 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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Temporary Tax Holiday and Government Reduction 

6 Act’’. 

7 (b) TABLE OF CONTENTS.—The table of contents of 

8 this Act is as follows: 


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Sec. 1. Short title; table of contents. 

TITLE I—PAYROLL TAX RELIEF 

Sec. 101. Extension of payroll tax holiday. 

TITLE II—DEFICIT REDUCTION 

Subtitle A—Reform of Federal Benefits for Millionaires 

Sec. 201. Ending unemployment and supplemental nutrition assistance program benefits for millionaires. 

Sec. 202. Increase in the Medicare part B and D premiums for higher-income 

Medicare beneficiaries. 

Subtitle B—Federal Employee Provisions 

Sec. 211. Reduction in the number of Federal employees. 

Sec. 212. Extension of pay freeze for Federal employees. 

Sec. 213. Reduction of revised discretionary spending limits to achieve savings 

from Federal employee provisions. 

Subtitle C—Buffett Rule Act of 2011 

Sec. 221. Short title. 

Sec. 222. Donation to pay down national debt. 

1 TITLE I—PAYROLL TAX RELIEF 

2 SEC. 101. EXTENSION OF PAYROLL TAX HOLIDAY. 

3 Section 601(c) of the Tax Relief, Unemployment In4 surance Reauthorization, and Job Creation Act of 2010 

5 (26 U.S.C. 1401 note) is amended by striking ‘‘year 

6 2011’’ and inserting ‘‘years 2011 and 2012’’. 

7 TITLE II—DEFICIT REDUCTION 

8 Subtitle A—Reform of Federal 

9 Benefits for Millionaires 

10 SEC. 201. ENDING UNEMPLOYMENT AND SUPPLEMENTAL 

11 NUTRITION ASSISTANCE PROGRAM BENEFITS 

12 FOR MILLIONAIRES. 

13 (a) ENDING UNEMPLOYMENT BENEFITS FOR MIL14 LIONAIRES.— 


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1 (1) IN GENERAL.—Subtitle E of the Internal 

2 Revenue Code of 1986 is amended by adding at the 

3 end the following new chapter: 

4 ‘‘CHAPTER 56—EXCESS UNEMPLOYMENT 

5 COMPENSATION 

‘‘Sec. 5895. Excess unemployment compensation. 

6 ‘‘SEC. 5895. EXCESS UNEMPLOYMENT COMPENSATION. 

7 ‘‘(a) IMPOSITION OF TAX.—There is hereby imposed 

8 a tax equal to 100 percent of the excess unemployment 

9 compensation received by a taxpayer in any taxable year. 

10 ‘‘(b) EXCESS UNEMPLOYMENT COMPENSATION.— 

11 For purposes of this section, the term ‘excess unemploy12 ment compensation’ means, with respect to any State, the 

13 amount which bears the same ratio (not to exceed 1) to 

14 the amount of unemployment compensation received by 

15 the taxpayer from such State in the taxable year as— 

16 ‘‘(1) the excess of— 

17 ‘‘(A) the taxpayer’s adjusted gross income 

18 for such taxable year, over 

19 ‘‘(B) $750,000 ($1,500,000 in the case of 

20 a joint return), bears to 

21 ‘‘(2) $250,000 ($500,000 in the case of a joint 

22 return). 

23 ‘‘(c) ADDITIONAL DEFINITIONS.—For purposes of 

24 this section— 


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1 ‘‘(1) ADJUSTED GROSS INCOME.—The term ‘ad2 justed gross income’ has the meaning given such 

3 term by section 62. 

4 ‘‘(2) UNEMPLOYMENT COMPENSATION.—The 

5 term ‘unemployment compensation’ has the meaning 

6 given such term by section 85(b). 

7 ‘‘(d) ADMINISTRATIVE PROVISIONS.—For purposes 

8 of the deficiency procedures of subtitle F, any tax imposed 

9 by this section shall be treated as a tax imposed by subtitle 

10 A. 

11 ‘‘(e) TRANSFER OF TAX RECEIPTS.—With respect to 

12 excess unemployment compensation received by any tax13 payer from a State, there is hereby appropriated to the 

14 unemployment fund (as defined in section 3306(f)) of such 

15 State, an amount equal to the amount of the tax imposed 

16 under subsection (a) on such excess unemployment com17 pensation received in the Treasury.’’. 

18 (2) TAX NOT DEDUCTIBLE.—Section 275(a) of 

19 the Internal Revenue Code of 1986 is amended by 

20 inserting after paragraph (6) the following new 

21 paragraph: 

22 ‘‘(7) Tax imposed by section 5895.’’. 

23 (3) CLERICAL AMENDMENT.—The table of 

24 chapters for subtitle E of the Internal Revenue Code 


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1 of 1986 is amended by adding at the end the fol2 lowing new item: 

‘‘CHAPTER 56—EXCESS UNEMPLOYMENT COMPENSATION’’. 

3 (4) EFFECTIVE DATE.—The amendments made 

4 by this subsection shall apply to unemployment com5 pensation received in taxable years beginning after 

6 December 31, 2011. 

7 (b) ENDING SUPPLEMENTAL NUTRITION ASSIST8 ANCE PROGRAM BENEFITS FOR MILLIONAIRES.— 

9 (1) IN GENERAL.—Section 6 of the Food and 

10 Nutrition Act of 2008 (7 U.S.C. 2015) is amended 

11 by adding at the end the following: 

12 ‘‘(r) DISQUALIFICATION FOR RECEIPT OF ASSETS OF

13 AT LEAST $1,000,000.—Any household in which a mem14 ber receives income or assets with a fair market value of 

15 at least $1,000,000 shall, immediately on the receipt of 

16 the assets, become ineligible for further participation in 

17 the program until the date on which the household meets 

18 the income eligibility and allowable financial resources 

19 standards under section 5.’’. 

20 (2) CONFORMING AMENDMENTS.—Section 5(a) 

21 of the Food and Nutrition Act of 2008 (7 U.S.C. 

22 2014(a)) is amended in the second sentence by strik23 ing ‘‘sections 6(b), 6(d)(2), and 6(g)’’ and inserting 

24 ‘‘subsections (b), (d)(2), (g), and (r) of section 6’’. 


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1 SEC. 202. INCREASE IN THE MEDICARE PART B AND D PRE2 MIUMS FOR HIGHER-INCOME MEDICARE 

3 BENEFICIARIES. 

4 (a) INCREASE.— 

5 (1) IN GENERAL.—Section 1839(i)(3) of the 

6 Social Security Act (42 U.S.C. 1395r(i)(3)) is 

7 amended— 

8 (A) in subparagraph (A)(i), by inserting 

9 ‘‘and year’’ after ‘‘individual’’; 

10 (B) in the table specified in subparagraph 

11 (C)(i)— 

12 (i) in the fourth row, by inserting 

13 ‘‘but not more than $750,000’’ after 

14 ‘‘$200,000’’; and 

15 (ii) by adding at the end the following 

16 2 new rows: 

More than $750,000 but not more than $1,000,000 ..................... 95 percent 

More than $1,000,000 .................................................................... 100 percent 

17 (2) EFFECTIVE DATE.—The amendments made 

18 by paragraph (1) shall apply to 2013 and subse19 quent years. 

20 (b) EXTENSION OF FREEZE ON INFLATION ADJUST21 MENTS.—Section 1839(i)(6) of the Social Security Act (42 

22 U.S.C. 1395r(i)(6)) is amended, in the matter preceding 


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1 subparagraph (A), by striking ‘‘December 31, 2019’’ and 

2 inserting ‘‘December 31, 2022’’. 

3 Subtitle B—Federal Employee 

4 Provisions 

5 SEC. 211. REDUCTION IN THE NUMBER OF FEDERAL EM6 PLOYEES. 

7 (a) DEFINITIONS.—In this section— 

8 (1) the term ‘‘agency’’ means an executive 

9 agency as defined under section 105 of title 5, 

10 United States Code; and 

11 (2) the term ‘‘employee’’ has the meaning given 

12 that term under section 2105 of title 5, United 

13 States Code. 

14 (b) DETERMINATION OF NUMBER OF EMPLOYEES.— 

15 Not later than 60 days after the date of enactment of this 

16 Act, the Director of the Office of Management and Budget 

17 and the Director of the Office of Personnel Management 

18 shall determine the number of full-time employees em19 ployed in each agency. The head of each agency shall co20 operate with the Director of the Office of Management 

21 and Budget and the Director of the Office of Personnel 

22 Management in making the determinations. 

23 (c) REPLACEMENT HIRE RATE.— 

24 (1) IN GENERAL.—During the period described 

25 under paragraph (2), the head of each agency may 


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1 hire no more than 1 employee in that agency for 

2 every 3 full-time employees who leave employment in 

3 that agency. 

4 (2) PERIOD OF REPLACEMENT HIRE RATE.— 

5 Paragraph (1) shall apply to each agency during the 

6 period beginning 60 days after the date of enact7 ment of this Act and ending on the date on which 

8 the Director of the Office of Management and Budg9 et and the Director of the Office of Personnel Man10 agement make a determination that the number of 

11 full-time employees employed in that agency is 10 

12 percent less than the number of full-time employees 

13 employed in that agency determined under sub14 section (b). 

15 (d) WAIVERS.— 

16 (1) IN GENERAL.—This section may be waived 

17 upon a written determination by the President 

18 that— 

19 (A) the existence of a state of war or other 

20 national security concern so requires; or 

21 (B) the existence of an extraordinary 

22 emergency threatening life, health, public safe23 ty, property, or the environment so requires. 


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1 (2) SUBMISSION TO CONGRESS.—The President 

2 shall submit to Congress any written determination 

3 under paragraph (1). 

4 SEC. 212. EXTENSION OF PAY FREEZE FOR FEDERAL EM5 PLOYEES. 

6 (a) IN GENERAL.—Section 147 of the Continuing 

7 Appropriations Act, 2011 (Public Law 111–242; 5 U.S.C. 

8 5303 note) is amended— 

9 (1) in subsection (b)(1), by striking ‘‘December 

10 31, 2012’’ and inserting ‘‘December 31, 2015’’; and 

11 (2) in subsection (c), by striking ‘‘December 31, 

12 2012’’ and inserting ‘‘December 31, 2015’’. 

13 (b) CLARIFICATION THAT FREEZE APPLIES TO LEG14 ISLATIVE BRANCH.— 

15 (1) MEMBERS OF CONGRESS.—Notwithstanding 

16 any other provision of law, no adjustment shall be 

17 made under section 601(a) of the Legislative Reor18 ganization Act of 1946 (2 U.S.C. 31) (relating to 

19 cost of living adjustments for Members of Congress) 

20 during the period beginning on the first day of the 

21 first pay period beginning on or after February 1, 

22 2013 and ending on December 31, 2015. 

23 (2) LEGISLATIVE BRANCH EMPLOYEES.— 

24 (A) DEFINITION.—In this paragraph, the 

25 term ‘‘legislative branch employee’’ means— 


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1 (i) an employee whose pay is dis2 bursed by the Secretary of the Senate or 

3 the Chief Administrative Officer of the 

4 House of Representatives; and 

5 (ii) an employee of any agency estab6 lished in the legislative branch. 

7 (B) FREEZE.—Notwithstanding any other 

8 provision of law, no cost of living adjustment 

9 required by statute with respect to a legislative 

10 branch employee which (but for this subpara11 graph) would otherwise take effect during the 

12 period beginning on the date of enactment of 

13 this Act and ending on December 31, 2015 

14 shall be made. 

15 SEC. 213. REDUCTION OF REVISED DISCRETIONARY SPEND16 ING LIMITS TO ACHIEVE SAVINGS FROM FED17 ERAL EMPLOYEE PROVISIONS. 

18 Section 251A(2) of the Balanced Budget and Emer19 gency Deficit Control Act of 1985 (2 U.S.C. 901a(2)) is 

20 amended to read as follows: 

21 ‘‘(2) REVISED DISCRETIONARY SPENDING LIM22 ITS.—The discretionary spending limits for fiscal 

23 years 2013 through 2021 under section 251(c) shall 

24 be replaced with the following: 

25 ‘‘(A) For fiscal year 2013— 


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1 ‘‘(i) for the revised security category, 

2 $542,000,000,000 in budget authority; and 

3 ‘‘(ii) for the revised nonsecurity cat4 egory, $493,000,000,000 in budget author5 ity. 

6 ‘‘(B) For fiscal year 2014— 

7 ‘‘(i) for the revised security category, 

8 $548,000,000,000 in budget authority; and 

9 ‘‘(ii) for the revised nonsecurity cat10 egory, $497,000,000,000 in budget author11 ity. 

12 ‘‘(C) For fiscal year 2015— 

13 ‘‘(i) for the revised security category, 

14 $556,000,000,000 in budget authority; and 

15 ‘‘(ii) for the revised nonsecurity cat16 egory, $503,000,000,000 in budget author17 ity. 

18 ‘‘(D) For fiscal year 2016— 

19 ‘‘(i) for the revised security category, 

20 $567,000,000,000 in budget authority; and 

21 ‘‘(ii) for the revised nonsecurity cat22 egory, $512,000,000,000 in budget author23 ity. 

24 ‘‘(E) For fiscal year 2017— 


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1 ‘‘(i) for the revised security category, 

2 $579,000,000,000 in budget authority; and 

3 ‘‘(ii) for the revised nonsecurity cat4 egory, $522,000,000,000 in budget author5 ity. 

6 ‘‘(F) For fiscal year 2018— 

7 ‘‘(i) for the revised security category, 

8 $592,000,000,000 in budget authority; and 

9 ‘‘(ii) for the revised nonsecurity cat10 egory, $534,000,000,000 in budget author11 ity. 

12 ‘‘(G) For fiscal year 2019— 

13 ‘‘(i) for the revised security category, 

14 $605,000,000,000 in budget authority; and 

15 ‘‘(ii) for the revised nonsecurity cat16 egory, $546,000,000,000 in budget author17 ity. 

18 ‘‘(H) For fiscal year 2020— 

19 ‘‘(i) for the revised security category, 

20 $618,000,000,000 in budget authority; and 

21 ‘‘(ii) for the revised nonsecurity cat22 egory, $557,000,000,000 in budget author23 ity. 

24 ‘‘(I) For fiscal year 2021— 


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1 ‘‘(i) for the revised security category, 

2 $632,000,000,000 in budget authority; and 

3 ‘‘(ii) for the revised nonsecurity cat4 egory, $568,000,000,000 in budget author5 ity.’’. 

6 Subtitle C—Buffett Rule Act of 

7 2011 

8 SEC. 221. SHORT TITLE. 

9 This title may be cited as the ‘‘Buffett Rule Act of 

10 2011’’. 

11 SEC. 222. DONATION TO PAY DOWN NATIONAL DEBT. 

12 (a) IN GENERAL.—Subchapter A of chapter 61 of the 

13 Internal Revenue Code of 1986 is amended by adding at 

14 the end the following new part: 

15 ‘‘PART IX—DONATIONS TO PAY DOWN NATIONAL 

16 DEBT 

‘‘Sec. 6097. Donation to pay down national debt. 

17 ‘‘SEC. 6097. DONATION TO PAY DOWN NATIONAL DEBT. 

18 ‘‘(a) GENERAL RULE.—Every taxpayer who makes a 

19 return of the tax imposed by subtitle A for any taxable 

20 year may donate an amount (not less than $1), in addition 

21 to any payment of tax for such taxable year, which shall 

22 be deposited in the general fund of the Treasury. 

23 ‘‘(b) MANNER AND TIME OF DESIGNATION.—Any do24 nation under subsection (a) for any taxable year— 


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1 ‘‘(1) shall be made at the time of filing the re2 turn of the tax imposed by subtitle A for such tax3 able year and in such manner as the Secretary may 

4 by regulation prescribe, except that— 

5 ‘‘(A) the designation for such donation 

6 shall be either on the first page of the return 

7 or on the page bearing the taxpayer’s signature, 

8 and 

9 ‘‘(B) the designation shall be by a box 

10 added to the return, and the text beside the box 

11 shall provide: 

‘‘By checking here, I signify that in addition to my tax liability, I would like to 

donate the included payment to be used exclusively for the purpose of paying 

down the national debt.’’, 

12 and 

13 ‘‘(2) shall be accompanied by a payment of the 

14 amount so designated. 

15 ‘‘(c) TREATMENT OF AMOUNTS DONATED.—For pur16 poses of this title, the amount donated by any taxpayer 

17 under subsection (a) shall be treated as a contribution 

18 made by such taxpayer to the United States on the last 

19 date prescribed for filing the return of tax imposed by sub20 title A (determined without regard to extensions) or, if 

21 later, the date the return is filed. 

22 ‘‘(d) TRANSFERS TO ACCOUNT TO REDUCE PUBLIC

23 DEBT.—The Secretary shall, from time to time, transfer 


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1 to the special account established by section 3113(d) of 

2 title 31, United States Code, amounts equal to the 

3 amounts donated under this section.’’. 

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

5 subchapter A of such chapter is amended by adding at 

6 the end the following new item: 

‘‘PART IX. DONATIONS TO PAY DOWN NATIONAL DEBT’’. 

7 (c) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to returns for taxable years ending 

9 after December 31, 2011. 


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Calendar No. 244 

112TH CONGRESS 

1ST SESSION S. 1931 

A BILL 

To provide civilian payroll tax relief, to reduce the 

Federal budget deficit, and for other purposes. 

DECEMBER 1, 2011 

Read the second time and placed on the calendar 


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