I 

112TH CONGRESS 

2D SESSION H. R. 15 

To amend the Internal Revenue Code of 1986 to provide tax relief to middleclass families. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 30, 2012 

Mr. LEVIN (for himself, Ms. PELOSI, Mr. HOYER, Mr. CLYBURN, Mr. RANGEL, Mr. MCDERMOTT, Mr. LEWIS of Georgia, Mr. NEAL, Mr. LARSON

of Connecticut, Mr. BLUMENAUER, Mr. PASCRELL, Mr. CROWLEY, Mr. 

VAN HOLLEN, Mr. DICKS, Ms. CHU, Mr. HONDA, Mr. TONKO, Ms. 

HAHN, Mr. GEORGE MILLER of California, Mr. WELCH, Mr. RICHMOND, 

Mr. CICILLINE, Ms. SCHAKOWSKY, Ms. EDDIE BERNICE JOHNSON of 

Texas, Mr. SERRANO, Mrs. CAPPS, and Ms. PINGREE of Maine) introduced the following bill; which was referred to the Committee on Ways 

and Means, and in addition to the Committee on the Budget, 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 Internal Revenue Code of 1986 to provide 

tax relief to middle-class families. 

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; ETC. 

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

5 ‘‘Middle Class Tax Cut Act’’. 


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1 (b) AMENDMENT OF 1986 CODE.—Except as other2 wise expressly provided, whenever in this Act an amend3 ment or repeal is expressed in terms of an amendment 

4 to, or repeal of, a section or other provision, the reference 

5 shall be considered to be made to a section or other provi6 sion of the Internal Revenue Code of 1986. 

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

8 this Act is as follows: 

Sec. 1. Short title; etc. 

TITLE I—TEMPORARY EXTENSION OF TAX RELIEF 

Sec. 101. Temporary extension of 2001 tax relief. 

Sec. 102. Temporary extension of 2003 tax relief. 

Sec. 103. Temporary extension of 2010 tax relief. 

Sec. 104. Temporary extension of election to expense certain depreciable business assets. 

TITLE II—ALTERNATIVE MINIMUM TAX RELIEF 

Sec. 201. Temporary extension of increased alternative minimum tax exemption 

amount. 

Sec. 202. Temporary extension of alternative minimum tax relief for nonrefundable personal credits. 

TITLE III—TREATMENT FOR PAYGO PURPOSES 

Sec. 301. Treatment for PAYGO purposes. 

9 TITLE I—TEMPORARY 

10 EXTENSION OF TAX RELIEF 

11 SEC. 101. TEMPORARY EXTENSION OF 2001 TAX RELIEF. 

12 (a) TEMPORARY EXTENSION.— 

13 (1) IN GENERAL.—Section 901(a)(1) of the 

14 Economic Growth and Tax Relief Reconciliation Act 

15 of 2001 is amended by striking ‘‘December 31, 

16 2012’’ and inserting ‘‘December 31, 2013’’. 


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1 (2) EFFECTIVE DATE.—The amendment made 

2 by this subsection shall take effect as if included in 

3 the enactment of the Economic Growth and Tax Re4 lief Reconciliation Act of 2001. 

5 (b) APPLICATION TO CERTAIN HIGH-INCOME TAX6 PAYERS.— 

7 (1) INCOME TAX RATES.— 

8 (A) TREATMENT OF 25- AND 28-PERCENT

9 RATE BRACKETS.—Paragraph (2) of section 

10 1(i) is amended to read as follows: 

11 ‘‘(2) 25- AND 28-PERCENT RATE BRACKETS.— 

12 The tables under subsections (a), (b), (c), (d), and 

13 (e) shall be applied— 

14 ‘‘(A) by substituting ‘25%’ for ‘28%’ each 

15 place it appears (before the application of sub16 paragraph (B)), and 

17 ‘‘(B) by substituting ‘28%’ for ‘31%’ each 

18 place it appears.’’. 

19 (B) 33-PERCENT RATE BRACKET.—Sub20 section (i) of section 1 is amended by redesig21 nating paragraph (3) as paragraph (4) and by 

22 inserting after paragraph (2) the following new 

23 paragraph: 

24 ‘‘(3) 33-PERCENT RATE BRACKET.— 


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

2 years beginning after December 31, 2012— 

3 ‘‘(i) the rate of tax under subsections 

4 (a), (b), (c), and (d) on a taxpayer’s tax5 able income in the fourth rate bracket shall 

6 be 33 percent to the extent such income 

7 does not exceed an amount equal to the ex8 cess of— 

9 ‘‘(I) the applicable amount, over 

10 ‘‘(II) the dollar amount at which 

11 such bracket begins, and 

12 ‘‘(ii) the 36 percent rate of tax under 

13 such subsections shall apply only to the 

14 taxpayer’s taxable income in such bracket 

15 in excess of the amount to which clause (i) 

16 applies. 

17 ‘‘(B) APPLICABLE AMOUNT.—For purposes 

18 of this paragraph, the term ‘applicable amount’ 

19 means the excess of— 

20 ‘‘(i) the applicable threshold, over 

21 ‘‘(ii) the sum of the following amounts 

22 in effect for the taxable year: 

23 ‘‘(I) the basic standard deduction 

24 (within the meaning of section 

25 63(c)(2)), and 


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1 ‘‘(II) the exemption amount 

2 (within the meaning of section 

3 151(d)(1)) (or, in the case of sub4 section (a), 2 such exemption 

5 amounts). 

6 ‘‘(C) APPLICABLE THRESHOLD.—For pur7 poses of this paragraph, the term ‘applicable 

8 threshold’ means— 

9 ‘‘(i) $250,000 in the case of sub10 section (a), 

11 ‘‘(ii) $225,000 in the case of sub12 section (b), 

13 ‘‘(iii) $200,000 in the case of sub14 sections (c), and 

‘‘(iv) 1 15 ⁄2 the amount applicable under 

16 clause (i) (after adjustment, if any, under 

17 subparagraph (E)) in the case of sub18 section (d). 

19 ‘‘(D) FOURTH RATE BRACKET.—For pur20 poses of this paragraph, the term ‘fourth rate 

21 bracket’ means the bracket which would (deter22 mined without regard to this paragraph) be the 

23 36-percent rate bracket. 

24 ‘‘(E) INFLATION ADJUSTMENT.—For pur25 poses of this paragraph, with respect to taxable 


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1 years beginning in calendar years after 2012, 

2 each of the dollar amounts under clauses (i), 

3 (ii), and (iii) of subparagraph (C) shall be ad4 justed in the same manner as under paragraph 

5 (1)(C), except that subsection (f)(3)(B) shall be 

6 applied by substituting ‘2008’ for ‘1992’.’’. 

7 (2) PHASEOUT OF PERSONAL EXEMPTIONS AND

8 ITEMIZED DEDUCTIONS.— 

9 (A) OVERALL LIMITATION ON ITEMIZED

10 DEDUCTIONS.—Section 68 is amended— 

11 (i) by striking ‘‘the applicable 

12 amount’’ the first place it appears in sub13 section (a) and inserting ‘‘the applicable 

14 threshold in effect under section 1(i)(3)’’, 

15 (ii) by striking ‘‘the applicable 

16 amount’’ in subsection (a)(1) and inserting 

17 ‘‘such applicable threshold’’, 

18 (iii) by striking subsection (b) and re19 designating subsections (c), (d), and (e) as 

20 subsections (b), (c), and (d), respectively, 

21 and 

22 (iv) by striking subsections (f) and 

23 (g). 

24 (B) PHASEOUT OF DEDUCTIONS FOR PER25 SONAL EXEMPTIONS.— 


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1 (i) IN GENERAL.—Paragraph (3) of 

2 section 151(d) is amended— 

3 (I) by striking ‘‘the threshold 

4 amount’’ in subparagraphs (A) and 

5 (B) and inserting ‘‘the applicable 

6 threshold in effect under section 

7 1(i)(3)’’, 

8 (II) by striking subparagraph (C) 

9 and redesignating subparagraph (D) 

10 as subparagraph (C), and 

11 (III) by striking subparagraphs 

12 (E) and (F). 

13 (ii) CONFORMING AMENDMENTS.— 

14 Paragraph (4) of section 151(d) is amend15 ed— 

16 (I) by striking subparagraph (B), 

17 (II) by redesignating clauses (i) 

18 and (ii) of subparagraph (A) as sub19 paragraphs (A) and (B), respectively, 

20 and by indenting such subparagraphs 

21 (as so redesignated) accordingly, and 

22 (III) by striking all that precedes 

23 ‘‘in a calendar year after 1989,’’ and 

24 inserting the following: 


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1 ‘‘(4) INFLATION ADJUSTMENT.—In the case of 

2 any taxable year beginning’’. 

3 (c) EFFECTIVE DATE.—Except as otherwise pro4 vided, the amendments made by this section shall apply 

5 to taxable years beginning after December 31, 2012. 

6 (d) APPLICATION OF EGTRRA SUNSET.—Each 

7 amendment made by subsection (b) shall be subject to title 

8 IX of the Economic Growth and Tax Relief Reconciliation 

9 Act of 2001 to the same extent and in the same manner 

10 as if such amendment was included in title I of such Act. 

11 SEC. 102. TEMPORARY EXTENSION OF 2003 TAX RELIEF. 

12 (a) EXTENSION.— 

13 (1) IN GENERAL.—Section 303 of the Jobs and 

14 Growth Tax Relief Reconciliation Act of 2003 is 

15 amended by striking ‘‘December 31, 2012’’ and in16 serting ‘‘December 31, 2013’’. 

17 (2) EFFECTIVE DATE.—The amendment made 

18 by this subsection shall take effect as if included in 

19 the enactment of the Jobs and Growth Tax Relief 

20 Reconciliation Act of 2003. 

21 (b) 20-PERCENT CAPITAL GAINS RATE FOR CERTAIN

22 HIGH INCOME INDIVIDUALS.— 

23 (1) IN GENERAL.—Paragraph (1) of section 

24 1(h) is amended by striking subparagraph (C), by 

25 redesignating subparagraphs (D) and (E) as subVerDate Mar 15 2010 03:55 Aug 01, 2012 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H15.IH H15

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1 paragraphs (E) and (F) and by inserting after sub2 paragraph (B) the following new subparagraphs: 

3 ‘‘(C) 15 percent of the lesser of— 

4 ‘‘(i) so much of the adjusted net cap5 ital gain (or, if less, taxable income) as ex6 ceeds the amount on which a tax is deter7 mined under subparagraph (B), or 

8 ‘‘(ii) the excess (if any) of— 

9 ‘‘(I) the amount of taxable in10 come which would (without regard to 

11 this paragraph) be taxed at a rate 

12 below 36 percent, over 

13 ‘‘(II) the sum of the amounts on 

14 which a tax is determined under sub15 paragraphs (A) and (B), 

16 ‘‘(D) 20 percent of the adjusted net capital 

17 gain (or, if less, taxable income) in excess of the 

18 sum of the amounts on which tax is determined 

19 under subparagraphs (B) and (C),’’. 

20 (2) MINIMUM TAX.—Paragraph (3) of section 

21 55(b) is amended by striking subparagraph (C), by 

22 redesignating subparagraph (D) as subparagraph 

23 (E), and by inserting after subparagraph (B) the 

24 following new subparagraphs: 

25 ‘‘(C) 15 percent of the lesser of— 


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1 ‘‘(i) so much of the adjusted net cap2 ital gain (or, if less, taxable excess) as ex3 ceeds the amount on which tax is deter4 mined under subparagraph (B), or 

5 ‘‘(ii) the excess described in section 

6 1(h)(1)(C)(ii), plus 

7 ‘‘(D) 20 percent of the adjusted net capital 

8 gain (or, if less, taxable excess) in excess of the 

9 sum of the amounts on which tax is determined 

10 under subparagraphs (B) and (C), plus’’. 

11 (c) CONFORMING AMENDMENTS.— 

12 (1) The following provisions are each amended 

13 by striking ‘‘15 percent’’ and inserting ‘‘20 per14 cent’’: 

15 (A) Section 531. 

16 (B) Section 541. 

17 (C) Section 1445(e)(1). 

18 (D) The second sentence of section 

19 7518(g)(6)(A). 

20 (E) Section 53511(f)(2) of title 46, United 

21 States Code. 

22 (2) Sections 1(h)(1)(B) and 55(b)(3)(B) are 

23 each amended by striking ‘‘5 percent (0 percent in 

24 the case of taxable years beginning after 2007)’’ and 

25 inserting ‘‘0 percent’’. 


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1 (3) Section 1445(e)(6) is amended by striking 

2 ‘‘15 percent (20 percent in the case of taxable years 

3 beginning after December 31, 2010)’’ and inserting 

4 ‘‘20 percent’’. 

5 (d) EFFECTIVE DATES.— 

6 (1) IN GENERAL.—Except as otherwise pro7 vided, the amendments made by subsections (b) and 

8 (c) shall apply to taxable years beginning after De9 cember 31, 2012. 

10 (2) WITHHOLDING.—The amendments made by 

11 paragraphs (1)(C) and (3) of subsection (c) shall 

12 apply to amounts paid on or after January 1, 2013. 

13 (e) APPLICATION OF JGTRRA SUNSET.—Each 

14 amendment made by subsections (b) and (c) shall be sub15 ject to section 303 of the Jobs and Growth Tax Relief 

16 Reconciliation Act of 2003 to the same extent and in the 

17 same manner as if such amendment was included in title 

18 III of such Act. 

19 SEC. 103. TEMPORARY EXTENSION OF 2010 TAX RELIEF. 

20 (a) AMERICAN OPPORTUNITY TAX CREDIT.— 

21 (1) IN GENERAL.—Section 25A(i) is amended 

22 by striking ‘‘or 2012’’ and inserting ‘‘2012, or 

23 2013’’. 

24 (2) TREATMENT OF POSSESSIONS.—Section 

25 1004(c)(1) of division B of the American Recovery 


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1 and Reinvestment Tax Act of 2009 is amended by 

2 striking ‘‘and 2012’’ each place it appears and in3 serting ‘‘2012, and 2013’’. 

4 (b) CHILD TAX CREDIT.—Section 24(d)(4) is amend5 ed— 

6 (1) by striking ‘‘AND 2012’’ in the heading and 

7 inserting ‘‘2012, AND 2013’’, and 

8 (2) by striking ‘‘or 2012’’ and inserting ‘‘2012, 

9 or 2013’’. 

10 (c) EARNED INCOME TAX CREDIT.—Section 32(b)(3) 

11 is amended— 

12 (1) by striking ‘‘AND 2012’’ in the heading and 

13 inserting ‘‘2012, AND 2013’’, and 

14 (2) by striking ‘‘or 2012’’ and inserting ‘‘2012, 

15 or 2013’’. 

16 (d) TEMPORARY EXTENSION OF RULE DIS17 REGARDING REFUNDS IN THE ADMINISTRATION OF FED18 ERAL PROGRAMS AND FEDERALLY ASSISTED PRO19 GRAMS.—Subsection (b) of section 6409 is amended by 

20 striking ‘‘December 31, 2012’’ and inserting ‘‘December 

21 31, 2013’’. 

22 (e) EFFECTIVE DATES.— 

23 (1) IN GENERAL.—Except as provided in para24 graph (2), the amendments made by this section 


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1 shall apply to taxable years beginning after Decem2 ber 31, 2012. 

3 (2) RULE DISREGARDING REFUNDS IN THE AD4 MINISTRATION OF CERTAIN PROGRAMS.—The 

5 amendment made by subsection (d) shall apply to 

6 amounts received after December 31, 2012. 

7 SEC. 104. TEMPORARY EXTENSION OF ELECTION TO EX8 PENSE CERTAIN DEPRECIABLE BUSINESS AS9 SETS. 

10 (a) IN GENERAL.— 

11 (1) DOLLAR LIMITATION.—Section 179(b)(1) is 

12 amended— 

13 (A) by striking ‘‘and’’ at the end of sub14 paragraph (C), 

15 (B) by redesignating subparagraph (D) as 

16 subparagraph (E), 

17 (C) by inserting after subparagraph (C) 

18 the following new subparagraph: 

19 ‘‘(D) $250,000 in the case of taxable years 

20 beginning in 2013, and’’, and 

21 (D) in subparagraph (E), as so redesig22 nated, by striking ‘‘2012’’ and inserting 

23 ‘‘2013’’. 

24 (2) REDUCTION IN LIMITATION.—Section 

25 179(b)(2) is amended— 


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1 (A) by striking ‘‘and’’ at the end of sub2 paragraph (C), 

3 (B) by redesignating subparagraph (D) as 

4 subparagraph (E), 

5 (C) by inserting after subparagraph (C) 

6 the following new subparagraph: 

7 ‘‘(D) $800,000 in the case of taxable years 

8 beginning in 2013, and’’, and 

9 (D) in subparagraph (E), as so redesig10 nated, by striking ‘‘2012’’ and inserting 

11 ‘‘2013’’. 

12 (b) COMPUTER SOFTWARE.—Section 

13 179(d)(1)(A)(ii) is amended by striking ‘‘2013’’ and in14 serting ‘‘2014’’. 

15 (c) ELECTION.—Section 179(c)(2) is amended by 

16 striking ‘‘2013’’ and inserting ‘‘2014’’. 

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

18 this section shall apply to taxable years beginning after 

19 December 31, 2012. 

20 TITLE II—ALTERNATIVE 

21 MINIMUM TAX RELIEF 

22 SEC. 201. TEMPORARY EXTENSION OF INCREASED ALTER23 NATIVE MINIMUM TAX EXEMPTION AMOUNT. 

24 (a) IN GENERAL.—Paragraph (1) of section 55(d) is 

25 amended— 


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1 (1) by striking ‘‘$72,450’’ and all that follows 

2 through ‘‘2011’’ in subparagraph (A) and inserting 

3 ‘‘$78,750 in the case of taxable years beginning in 

4 2012’’, and 

5 (2) by striking ‘‘$47,450’’ and all that follows 

6 through ‘‘2011’’ in subparagraph (B) and inserting 

7 ‘‘$50,600 in the case of taxable years beginning in 

8 2012’’. 

9 (b) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to taxable years beginning after 

11 December 31, 2011. 

12 SEC. 202. TEMPORARY EXTENSION OF ALTERNATIVE MIN13 IMUM TAX RELIEF FOR NONREFUNDABLE 

14 PERSONAL CREDITS. 

15 (a) IN GENERAL.—Paragraph (2) of section 26(a) is 

16 amended— 

17 (1) by striking ‘‘or 2011’’ and inserting ‘‘2011, 

18 or 2012’’, and 

19 (2) by striking ‘‘2011’’ in the heading thereof 

20 and inserting ‘‘2012’’. 

21 (b) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to taxable years beginning after 

23 December 31, 2011. 


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1 TITLE III—TREATMENT FOR 

2 PAYGO PURPOSES 

3 SEC. 301. TREATMENT FOR PAYGO PURPOSES. 

4 The budgetary effects of this Act shall not be entered 

5 on either PAYGO scorecard maintained pursuant to sec6 tion 4(d) of the Statutory Pay-As-You-Go Act of 2010. 

Æ 


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