II 

112TH CONGRESS 

2D SESSION S. 3714 

To alleviate the fiscal cliff, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 30, 2012 

Mr. MANCHIN introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To alleviate the fiscal cliff, 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 ‘‘Cliff Alleviation at 

5 Last Minute Act’’ or the ‘‘CALM Act’’. 

6 TITLE I—TAXES 

7 SEC. 101. PERMANENT EXTENSION AND GRADUAL IN8 CREASE IN CERTAIN TAX RATES ON INCOME, 

9 CAPITAL GAINS, AND DIVIDENDS. 

10 (a) IN GENERAL.—Notwithstanding section 

11 901(a)(1) the Economic Growth and Tax Relief Reconcili12 ation Act of 2001 and section 303 of the Tax Relief, UnVerDate Mar 15 2010 04:45 Dec 31, 2012 Jkt 029200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3714.IS S3714

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1 employment Insurance Reauthorization, and Job Creation 

2 Act of 2010, section 901 of the Economic Growth and Tax 

3 Relief Reconciliation Act of 2001 shall not apply to— 

4 (1) the provisions of, and amendments made 

5 by, such Act, or 

6 (2) the amendments made by title III of the 

7 Tax Relief, Unemployment Insurance Reauthoriza8 tion, and Job Creation Act of 2010. 

9 (b) INCOME TAX RATES.—Subsection (i) of section 

10 1 of the Internal Revenue Code of 1986 is amended— 

11 (1) by inserting ‘‘, and before January 1, 

12 2015’’ after ‘‘December 31, 2000’’ in subparagraph 

13 (A), 

14 (2) by inserting ‘‘(11.6 percent for taxable 

15 years beginning in 2013 and 13.3 percent for tax16 able years beginning in 2014)’’ after ‘‘10 percent’’ 

17 in subparagraph (A)(i), and 

18 (3) by striking the last row in the table con19 tained in paragraph (2) and inserting the following: 

‘‘2003 through 2012 ............... 25.0% 28.0% 33.0% 35.0%

2013 ........................................ 26.0% 29.0% 34.0% 36.5%

2014 ........................................ 27.0% 30.0% 35.0% 38.0%

2015 and thereafter ................ 28.0% 31.0% 36.0% 39.6%’’. 

20 (c) CAPITAL GAINS AND DIVIDENDS.—Subparagraph 

21 (C) of section 1(h)(1) of the Internal Revenue Code of 

22 1986 is amended by inserting ‘‘(16.6 percent for taxable 


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1 years beginning in 2013, 18.2 percent for taxable years 

2 beginning in 2014, and 20 percent for taxable years begin3 ning after 2014)’’ after ‘‘15 percent’’. 

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

5 this section shall apply to taxable years beginning after 

6 December 31, 2012. 

7 SEC. 102. PERMANENT EXTENSION OF ESTATE TAX LAW. 

8 (a) IN GENERAL.—Notwithstanding section 

9 901(a)(2) the Economic Growth and Tax Relief Reconcili10 ation Act of 2001 and section 303 of the Tax Relief, Un11 employment Insurance Reauthorization, and Job Creation 

12 Act of 2010, section 901 of the Economic Growth and Tax 

13 Relief Reconciliation Act of 2001 shall not apply to— 

14 (1) the provisions of, and amendments made 

15 by, title V of such Act, or 

16 (2) the amendments made by title III of the 

17 Tax Relief, Unemployment Insurance Reauthoriza18 tion, and Job Creation Act of 2010. 

19 (b) EXCLUSION EQUIVALENT OF UNIFIED CREDIT

20 EQUAL TO $3,500,000.— 

21 Subsection (c) of section 2010 of the Internal 

22 Revenue Code of 1986, as amended by sections 

23 302(a)(1) and 303(a) of the Tax Relief, Unemploy24 ment Insurance Reauthorization, and Job Creation 

25 Act of 2010, is amended— 


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1 (1) by striking ‘‘$5,000,000’’ in paragraph 

2 (3)(A) and inserting ‘‘$3,500,000’’, 

3 (2) by striking ‘‘2011’’ in paragraph (3)(B) and 

4 inserting ‘‘2013’’, and 

5 (3) by striking ‘‘2010’’ in paragraph (3)(B)(ii) 

6 and inserting ‘‘2012’’. 

7 (c) MAXIMUM ESTATE TAX RATE EQUAL TO 45 PER8 CENT.—The table contained in subsection (c) of section 

9 2001 of the Internal Revenue Code of 1986, as amended 

10 by section 302(a)(2) of the Tax Relief, Unemployment In11 surance Reauthorization, and Job Creation Act of 2010, 

12 is amended by striking ‘‘Over $500,000’’ and all that fol13 lows and inserting the following: 

‘‘Over $500,000 but not over $750,000 $155,800, plus 37 percent of the excess of such amount over $500,000. 

Over $750,000 but not over 

$1,000,000.

$248,300, plus 39 percent of the excess of such amount over $750,000. 

Over $1,000,000 but not over 

$1,250,000.

$345,800, plus 41 percent of the excess of such amount over 

$1,000,000. 

Over $1,250,000 but not over 

$1,500,000.

$448,300, plus 43 percent of the excess of such amount over 

$1,250,000. 

Over $1,500,000 .................................. $555,800, plus 45 percent of the excess of such amount over 

$1,500,000.’’. 

14 (d) COORDINATION WITH GIFT TAX TO REFLECT

15 DECREASE IN APPLICABLE CREDIT AMOUNT.—Section 

16 2001 of the Internal Revenue Code of 1986 is amended 

17 by adding at the end the following new subsection: 

18 ‘‘(h) MODIFICATION TO GIFT TAX TO REFLECT RE19 DUCED APPLICABLE CREDIT AMOUNT.—The amount deVerDate Mar 15 2010 04:45 Dec 31, 2012 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3714.IS S3714

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1 termined under section 2505(a)(1) for each calendar year 

2 shall not exceed the estate’s applicable credit amount 

3 under section 2010(c).’’. 

4 (e) REPEAL OF DEADWOOD.— 

5 (1) Sections 2011, 2057, and 2604 are hereby 

6 repealed. 

7 (2) The table of sections for part II of sub8 chapter A of chapter 11 is amended by striking the 

9 item relating to section 2011. 

10 (3) The table of sections for part IV of sub11 chapter A of chapter 11 is amended by striking the 

12 item relating to section 2057. 

13 (4) The table of sections for subchapter A of 

14 chapter 13 is amended by striking the item relating 

15 to section 2604. 

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

17 this section shall apply to estates of decedents dying, gen18 eration-skipping transfers, and gifts made, after Decem19 ber 31, 2012. 

20 TITLE II—DISCRETIONARY 

21 SPENDING CUTS 

22 SEC. 201. DISCRETIONARY SPENDING CUTS. 

23 (a) IN GENERAL.—Section 251A of the Balanced 

24 Budget and Emergency Deficit Control Act of 1985 (2 

25 U.S.C. 901a) is amended— 


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1 (1) in paragraph (3), by adding at the end the 

2 following: 

3 ‘‘In calculating the amount of the deficit reduction 

4 required for a fiscal year under this paragraph, 

5 OMB shall take into account any reduction in ex6 penditures achieved for that fiscal year under the 

7 authority under section 1899B of the Social Security 

8 Act.’’; 

9 (2) by striking paragraphs (5) through (10) 

10 and inserting the following: 

11 ‘‘(5) IMPLEMENTING REDUCTIONS.— 

12 ‘‘(A) IN GENERAL.—Subject to section 

13 255, for each of fiscal years 2013 through 

14 2021, OMB may determine from which ac15 counts and in what amounts funds shall be re16 duced in order to achieve the reduction cal17 culated pursuant to paragraph (3) and allocated 

18 pursuant to paragraph (4) for that year— 

19 ‘‘(i) to discretionary appropriations 

20 and direct spending accounts within func21 tion 050 (defense function); and 

22 ‘‘(ii) to discretionary appropriations 

23 and direct spending accounts in all other 

24 functions (nondefense functions). 


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1 ‘‘(B) REPORT.—For each of fiscal years 

2 2013 through 2021, OMB shall submit to Con3 gress a report detailing from which accounts 

4 and in what amounts OMB has determined 

5 funds shall be reduced for the fiscal year under 

6 subparagraph (A). 

7 ‘‘(C) ORDER.—For each of fiscal years 

8 2013 through 2021, the President shall order a 

9 sequestration, effective upon issuance, to reduce 

10 accounts as determined under subparagraph 

11 (A).’’; and 

12 (3) by redesignating paragraph (11) as para13 graph (6). 

14 (b) CONGRESSIONAL DISAPPROVAL PROCEDURES.— 

15 (1) DEFINITION.—In this subsection, the term 

16 ‘‘joint resolution’’ means only a joint resolution in17 troduced after the date on which the report of the 

18 Office of Management and Budget under section 

19 251A(5)(B) of the Balanced Budget and Emergency 

20 Deficit Control Act of 1985 relating to a fiscal year 

21 is received by Congress, the matter after the resolv22 ing clause of which is as follows: ‘‘That Congress 

23 disapproves the reductions determined by the Office 

24 of Management and Budget for fiscal year 

25 llllll as detailed in the report submitted by 


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1 the Office of Management and Budget on 

2 llllll.’’ (the blank spaces being appro3 priately filled in). 

4 (2) EFFECT OF DISAPPROVAL.—For each of fis5 cal years 2013 through 2021, and notwithstanding 

6 section 251A of the Balanced Budget and Emer7 gency Deficit Control Act of 1985 (2 U.S.C. 901a) 

8 (as amended by subsection (a)), if, within 60 days 

9 after the date on which Congress receives a report 

10 under section 251A(5)(B) of the Balanced Budget 

11 and Emergency Deficit Control Act of 1985, Con12 gress enacts a joint resolution disapproving the re13 ductions determined by the Office of Management 

14 and Budget relating to that fiscal year— 

15 (A) the President may not order a seques16 tration for that fiscal year under section 251A 

17 of the Balanced Budget and Emergency Deficit 

18 Control Act of 1985, as in effect on the date of 

19 enactment of the joint resolution; and 

20 (B) the President shall order a sequestra21 tion for that fiscal year under section 251A of 

22 the Balanced Budget and Emergency Deficit 

23 Control Act of 1985, as in effect on the day be24 fore the date of enactment of this Act. 


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1 (3) REFERRAL TO COMMITTEE.—A joint resolu2 tion introduced in the House of Representatives 

3 shall be referred to the Committee on the Budget of 

4 the House of Representatives. A joint resolution in5 troduced in the Senate shall be referred to the Com6 mittee on the Budget of the Senate. Such a joint 

7 resolution may not be reported before the 8th day 

8 after its introduction. 

9 (4) DISCHARGE OF COMMITTEE.—If the com10 mittee to which a joint resolution is referred has not 

11 reported such joint resolution at the end of 15 cal12 endar days after its introduction, such committee 

13 shall be deemed to be discharged from further con14 sideration of such joint resolution and such joint res15 olution shall be placed on the appropriate calendar 

16 of the House involved. 

17 (5) FLOOR CONSIDERATION.— 

18 (A) IN GENERAL.—When the committee to 

19 which a joint resolution is referred has re20 ported, or has been deemed to be discharged 

21 (under paragraph (4)) from further consider22 ation of, a joint resolution, it is at any time 

23 thereafter in order (even though a previous mo24 tion to the same effect has been disagreed to) 

25 for any Member of the respective House to 


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1 move to proceed to the consideration of the 

2 joint resolution, and all points of order against 

3 the joint resolution (and against consideration 

4 of the joint resolution) are waived. The motion 

5 is highly privileged in the House of Representa6 tives and is privileged in the Senate and is not 

7 debatable. The motion is not subject to amend8 ment, or to a motion to postpone, or to a mo9 tion to proceed to the consideration of other 

10 business. A motion to reconsider the vote by 

11 which the motion is agreed to or disagreed to 

12 shall not be in order. If a motion to proceed to 

13 the consideration of the joint resolution is 

14 agreed to, the resolution shall remain the unfin15 ished business of the respective House until dis16 posed of. 

17 (B) DEBATE.—Debate on the joint resolu18 tion, and on all debatable motions and appeals 

19 in connection therewith, shall be limited to not 

20 more than 10 hours, which shall be divided 

21 equally between those favoring and those oppos22 ing the joint resolution. A motion further to 

23 limit debate is in order and not debatable. An 

24 amendment to, or a motion to postpone, or a 

25 motion to proceed to the consideration of other 


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1 business, or a motion to recommit the joint res2 olution is not in order. A motion to reconsider 

3 the vote by which the joint resolution is agreed 

4 to or disagreed to is not in order. 

5 (C) VOTE ON FINAL PASSAGE.—Imme6 diately following the conclusion of the debate on 

7 a joint resolution, and a single quorum call at 

8 the conclusion of the debate if requested in ac9 cordance with the rules of the appropriate 

10 House, the vote on final passage of the joint 

11 resolution shall occur. 

12 (D) RULINGS OF THE CHAIR ON PROCE13 DURE.—Appeals from the decisions of the Chair 

14 relating to the application of the rules of the 

15 Senate or the House of Representatives, as the 

16 case may be, to the procedure relating to a joint 

17 resolution shall be decided without debate. 

18 (6) COORDINATION WITH ACTION BY OTHER

19 HOUSE.—If, before the passage by one House of a 

20 joint resolution of that House, that House receives 

21 from the other House a joint resolution, then the fol22 lowing procedures shall apply: 

23 (A) The joint resolution of the other House 

24 shall not be referred to a committee. 


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1 (B) With respect to a joint resolution of 

2 the House receiving the resolution— 

3 (i) the procedure in that House shall 

4 be the same as if no joint resolution had 

5 been received from the other House; but 

6 (ii) the vote on final passage shall be 

7 on the joint resolution of the other House. 

8 (7) RULES OF HOUSE OF REPRESENTATIVES

9 AND SENATE.—This subsection is enacted by Con10 gress— 

11 (A) as an exercise of the rulemaking power 

12 of the Senate and House of Representatives, re13 spectively, and as such it is deemed a part of 

14 the rules of each House, respectively, but appli15 cable only with respect to the procedure to be 

16 followed in that House in the case of a joint 

17 resolution, and it supersedes other rules only to 

18 the extent that it is inconsistent with such 

19 rules; and 

20 (B) with full recognition of the constitu21 tional right of either House to change the rules 

22 (so far as relating to the procedure of that 

23 House) at any time, in the same manner, and 

24 to the same extent as in the case of any other 

25 rule of that House. 


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1 TITLE III—ENTITLEMENT 

2 REFORM 

3 SEC. 301. ENTITLEMENT REFORM. 

4 Title XVIII of the Social Security Act (42 U.S.C. 

5 1395 et seq.) is amended by adding at the end the fol6 lowing new section: 

7 ‘‘REFORMS

8 ‘‘SEC. 1899B. (a) IN GENERAL.—Notwithstanding 

9 any provision of this title or any other provision of law, 

10 subject to subsection (b), for each of fiscal years 2014 

11 through 2023, the Secretary shall implement reforms 

12 under this title that result in reduced expenditures under 

13 this title equal to $40,000,000,000 in the fiscal year. 

14 ‘‘(b) BENEFICIARY PROTECTIONS.—The provisions 

15 of section 1899A(c)(2)(A)(ii) shall apply to the reforms 

16 under subsection (a) in the same manner as such provi17 sions apply to a proposal under section 1899A.’’. 

18 TITLE IV—COMPREHENSIVE TAX 

19 REFORM 

20 SEC. 401. SENSE OF SENATE. 

21 It is the sense of the Senate that Congress should 

22 address comprehensive tax reform in the 113th Congress. 

Æ 


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