I 

111TH CONGRESS 

2D SESSION H. R. 6467 

To amend the Internal Revenue Code of 1986 to provide middle class tax 

relief, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 1, 2010 

Mr. LEVIN 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 

middle class tax relief, 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; ETC. 

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

5 ‘‘Middle Class Tax Relief Act of 2010’’. 

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this Act an amend8 ment or repeal is expressed in terms of an amendment 

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


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1 shall be considered to be made to a section or other provi2 sion of the Internal Revenue Code of 1986. 

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

4 this Act is as follows: 

Sec. 1. Short title; etc. 

TITLE I—MIDDLE CLASS TAX RELIEF MADE PERMANENT 

Sec. 101. Middle class tax relief made permanent. 

Sec. 102. Certain provisions not applicable to high income individuals. 

Sec. 103. Related amendments. 

TITLE II—EXPENSING BY SMALL BUSINESSES OF CERTAIN 

DEPRECIABLE ASSETS 

Sec. 201. Increased limitations on expensing by small businesses of certain depreciable assets. 

TITLE III—EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF 

Sec. 301. Extension of alternative minimum tax relief for nonrefundable personal credits. 

Sec. 302. Extension of increased alternative minimum tax exemption amount. 

TITLE IV—BUDGETARY PROVISION 

Sec. 401. PAYGO compliance. 

5 TITLE I—MIDDLE CLASS TAX 

6 RELIEF MADE PERMANENT 

7 SEC. 101. MIDDLE CLASS TAX RELIEF MADE PERMANENT. 

8 (a) IN GENERAL.—Section 901 of the Economic 

9 Growth and Tax Relief Reconciliation Act of 2001 shall 

10 not apply to the following provisions of such Act (and to 

11 the amendments made by such provisions): 

12 (1) Title I (relating to individual income tax 

13 rate reductions). 

14 (2) Title II (relating to tax benefits related to 

15 children). 


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1 (3) Title III (relating to marriage penalty re2 lief). 

3 (4) Title IV (relating to affordable education 

4 provisions). 

5 (b) REDUCED RATES ON CAPITAL GAINS AND DIVI6 DENDS.—The Jobs and Growth Tax Relief Reconciliation 

7 Act of 2003 is amended by striking section 303. 

8 SEC. 102. CERTAIN PROVISIONS NOT APPLICABLE TO HIGH 

9 INCOME INDIVIDUALS. 

10 (a) INDIVIDUAL INCOME TAX RATES.—Subsection (i) 

11 of section 1 is amended by striking paragraph (2), by re12 designating paragraph (3) as paragraph (4), and by in13 serting after paragraph (1) the following new paragraphs: 

14 ‘‘(2) 25- AND 28-PERCENT RATE BRACKETS.— 

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

16 (e) shall be applied— 

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

18 place it appears (before the application of sub19 paragraph (B)), and 

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

21 place it appears. 

22 ‘‘(3) 33-PERCENT RATE BRACKET.— 

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

24 years beginning after December 31, 2010— 


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

2 (a), (b), (c), and (d) on a taxpayer’s tax3 able income in the fourth rate bracket shall 

4 be 33 percent to the extent such income 

5 does not exceed an amount equal to the ex6 cess of— 

7 ‘‘(I) the applicable amount, over 

8 ‘‘(II) the dollar amount at which 

9 such bracket begins, and 

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

11 such subsections shall apply only to the 

12 taxpayer’s taxable income in such bracket 

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

14 applies. 

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

16 of this paragraph, the term ‘applicable amount’ 

17 means the excess of— 

18 ‘‘(i) the applicable threshold, over 

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

20 in effect for the taxable year: 

21 ‘‘(I) the basic standard deduction 

22 (within the meaning of section 

23 63(c)(2)), and 

24 ‘‘(II) the exemption amount 

25 (within the meaning of section 


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1 151(d)(1)) (or, in the case of sub2 section (a), 2 such exemption 

3 amounts). 

4 ‘‘(C) APPLICABLE THRESHOLD.—For pur5 poses of this paragraph, the term ‘applicable 

6 threshold’ means— 

7 ‘‘(i) $250,000 in the case of sub8 section (a), 

9 ‘‘(ii) $200,000 in the case of sub10 sections (b) and (c), and 

‘‘(iii) 1 11 ⁄2 the amount applicable under 

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

13 subparagraph (E)) in the case of sub14 section (d). 

15 ‘‘(D) FOURTH RATE BRACKET.—For pur16 poses of this paragraph, the term ‘fourth rate 

17 bracket’ means the bracket which would (deter18 mined without regard to this paragraph) be the 

19 36-percent rate bracket. 

20 ‘‘(E) INFLATION ADJUSTMENT.—For pur21 poses of this paragraph, a rule similar to the 

22 rule of paragraph (1)(C) shall apply with re23 spect to taxable years beginning in calendar 

24 years after 2010, applied by substituting ‘2008’ 

25 for ‘1992’ in subsection (f)(3)(B).’’. 


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1 (b) PHASEOUT OF PERSONAL EXEMPTIONS AND

2 ITEMIZED DEDUCTIONS.— 

3 (1) OVERALL LIMITATION ON ITEMIZED DEDUC4 TIONS.—Section 68 is amended— 

5 (A) by striking ‘‘the applicable amount’’ 

6 the first place it appears in subsection (a) and 

7 inserting ‘‘the applicable threshold in effect 

8 under section 1(i)(3)’’, 

9 (B) by striking ‘‘the applicable amount’’ in 

10 subsection (a)(1) and inserting ‘‘such applicable 

11 threshold’’, 

12 (C) by striking subsection (b) and redesig13 nating subsections (c), (d), and (e) as sub14 sections (b), (c), and (d), respectively, and 

15 (D) by striking subsections (f) and (g). 

16 (2) PHASEOUT OF DEDUCTIONS FOR PERSONAL

17 EXEMPTIONS.— 

18 (A) IN GENERAL.—Paragraph (3) of sec19 tion 151(d) is amended— 

20 (i) by striking ‘‘the threshold amount’’ 

21 in subparagraphs (A) and (B) and insert22 ing ‘‘the applicable threshold in effect 

23 under section 1(i)(3)’’, 


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1 (ii) by striking subparagraph (C) and 

2 redesignating subparagraph (D) as sub3 paragraph (C), and 

4 (iii) by striking subparagraphs (E) 

5 and (F). 

6 (B) CONFORMING AMENDMENT.—Para7 graph (4) of section 151(d) is amended— 

8 (i) by striking subparagraph (B), 

9 (ii) by redesignating clauses (i) and 

10 (ii) of subparagraph (A) as subparagraphs 

11 (A) and (B), respectively, and by indenting 

12 such subparagraphs (as so redesignated) 

13 accordingly, and 

14 (iii) by striking all that precedes ‘‘in 

15 a calendar year after 1989,’’ and inserting 

16 the following: 

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

18 any taxable year beginning’’. 

19 (c) REDUCED RATE ON CAPITAL GAINS AND DIVI20 DENDS.— 

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

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

23 redesignating subparagraphs (D) and (E) as sub24 paragraphs (E) and (F) and by inserting after sub25 paragraph (B) the following new subparagraphs: 


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1 ‘‘(C) 15 percent of the lesser of— 

2 ‘‘(i) so much of the adjusted net cap3 ital gain (or, if less, taxable income) as ex4 ceeds the amount on which a tax is deter5 mined under subparagraph (B), or 

6 ‘‘(ii) the excess (if any) of— 

7 ‘‘(I) the amount of taxable in8 come which would (without regard to 

9 this subsection) be taxed at a rate 

10 below 36 percent, over 

11 ‘‘(II) the sum of the amounts on 

12 which tax is determined under sub13 paragraphs (A) and (B), 

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

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

16 sum of the amounts on which tax is determined 

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

18 (2) DIVIDENDS.—Subparagraph (A) of section 

19 1(h)(11) is amended by striking ‘‘qualified dividend 

20 income’’ and inserting ‘‘so much of the qualified div21 idend income as does not exceed the excess (if any) 

22 of— 

23 ‘‘(i) the amount of taxable income 

24 which would (without regard to this subVerDate Mar 15 2010 01:23 Dec 02, 2010 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H6467.IH H6467

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1 section) be taxed at a rate below 36 per2 cent, over 

3 ‘‘(ii) taxable income reduced by quali4 fied dividend income.’’. 

5 (3) MINIMUM TAX.—Section 55 is amended by 

6 adding at the end the following new subsection: 

7 ‘‘(f) APPLICATION OF MAXIMUM RATE OF TAX ON

8 NET CAPITAL GAIN OF NONCORPORATE TAXPAYERS.—In 

9 the case of taxable years beginning after December 31, 

10 2010, the amount determined under subparagraph (C) of 

11 subsection (b)(3) shall be the sum of— 

12 ‘‘(1) 15 percent of the lesser of— 

13 ‘‘(A) so much of the adjusted net capital 

14 gain (or, if less, taxable excess) as exceeds the 

15 amount on which tax is determined under sub16 paragraph (B) of subsection (b)(3), or 

17 ‘‘(B) the excess described in section 

18 1(h)(1)(C)(ii), plus 

19 ‘‘(2) 20 percent of the adjusted net capital gain 

20 (or, if less, taxable excess) in excess of the sum of 

21 the amounts on which tax is determined under sub22 section (b)(3)(B) and paragraph (1).’’. 

23 (4) CONFORMING AMENDMENTS.— 


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1 (A) The following provisions are amended 

2 by striking ‘‘15 percent’’ and inserting ‘‘20 per3 cent’’: 

4 (i) Section 1445(e)(1). 

5 (ii) The second sentence of section 

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

7 (iii) Section 53511(f)(2) of title 46, 

8 United States Code. 

9 (B) Sections 531 and 541 are each amend10 ed by striking ‘‘15 percent of’’ and inserting 

11 ‘‘the product of the highest rate of tax under 

12 section 1(c) and’’. 

13 (C) Section 1445(e)(6) is amended by 

14 striking ‘‘15 percent (20 percent in the case of 

15 taxable years beginning after December 31, 

16 2010)’’ and inserting ‘‘20 percent’’. 

17 (d) EFFECTIVE DATES.— 

18 (1) IN GENERAL.—Except as provided in para19 graph (2), the amendments made by this section 

20 shall apply to taxable years beginning after Decem21 ber 31, 2010. 

22 (2) WITHHOLDING.—The amendments made by 

23 subparagraphs (A)(i) and (C) of subsection (c)(4) 

24 shall apply to amounts paid on or after January 1, 

25 2011. 


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1 SEC. 103. RELATED AMENDMENTS. 

2 (a) APPLICATION OF INCREASE IN REFUNDABLE

3 PORTION OF CHILD TAX CREDIT.— 

4 (1) IN GENERAL.—Subsection (d) of section 24 

5 is amended— 

6 (A) by striking ‘‘$10,000’’ in paragraph 

7 (1)(B)(i) and inserting ‘‘$3,000’’, and 

8 (B) by striking paragraphs (3) and (4). 

9 (2) EFFECTIVE DATE.—The amendments made 

10 by this subsection shall apply to taxable years begin11 ning after December 31, 2010. 

12 (b) APPLICATION OF INCREASE IN EARNED INCOME

13 TAX CREDIT.— 

14 (1) IN GENERAL.—Subparagraph (B) of section 

15 32(b)(2) is amended to read as follows: 

16 ‘‘(B) JOINT RETURNS.— 

17 ‘‘(i) IN GENERAL.—In the case of a 

18 joint return filed by an eligible individual 

19 and such individual’s spouse, the phaseout 

20 amount determined under subparagraph 

21 (A) shall be increased by $5,000. 

22 ‘‘(ii) INFLATION ADJUSTMENT.—In 

23 the case of any taxable year beginning 

24 after 2010, the $5,000 amount in clause 

25 (i) shall be increased by an amount equal 

26 to— 


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1 ‘‘(I) such dollar amount, multi2 plied by 

3 ‘‘(II) the cost of living adjust4 ment determined under section 1(f)(3) 

5 for the calendar year in which the tax6 able year begins determined by sub7 stituting ‘calendar year 2008’ for ‘cal8 endar year 1992’ in subparagraph (B) 

9 thereof. 

10 Subparagraph (A) of subsection (j)(2) 

11 shall apply after taking into account any 

12 increase under the preceding sentence.’’. 

13 (2) CONFORMING AMENDMENT.—Subsection (b) 

14 of section 32 is amended by striking paragraph (3). 

15 (3) EFFECTIVE DATE.—The amendments made 

16 by this subsection shall apply to taxable years begin17 ning after December 31, 2010. 

18 (c) APPLICATION TO ADOPTION CREDIT AND ADOP19 TION ASSISTANCE PROGRAMS.—Subsection (c) of section 

20 10909 of the Patient Protection and Affordable Care Act 

21 is amended to read as follows: 

22 ‘‘(c) The amendments made by this section shall not 

23 apply to taxable years beginning after December 31, 

24 2011.’’. 


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1 TITLE II—EXPENSING BY SMALL 

2 BUSINESSES OF CERTAIN DE3 PRECIABLE ASSETS 

4 SEC. 201. INCREASED LIMITATIONS ON EXPENSING BY 

5 SMALL BUSINESSES OF CERTAIN DEPRE6 CIABLE ASSETS. 

7 (a) DOLLAR LIMITATION.—Subparagraph (C) of sec8 tion 179(b)(1) is amended by striking ‘‘$25,000’’ and in9 serting ‘‘$125,000’’. 

10 (b) THRESHOLD AT WHICH PHASEOUT BEGINS.— 

11 Subparagraph (C) of section 179(b)(2) is amended by 

12 striking ‘‘$200,000’’ and inserting ‘‘$500,000’’. 

13 (c) INFLATION ADJUSTMENT.—Subsection (b) of sec14 tion 179 is amended by adding at the end the following 

15 new paragraph: 

16 ‘‘(6) INFLATION ADJUSTMENTS.— 

17 ‘‘(A) IN GENERAL.—In the case of any 

18 taxable beginning in a calendar year after 2011, 

19 the $125,000 and $500,000 amounts in para20 graphs (1)(C) and (2)(C) shall each be in21 creased by an amount equal to— 

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

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1 gins determined by substituting ‘calendar 

2 year 2006’ for ‘calendar year 1992’ in sub3 paragraph (B) thereof. 

4 ‘‘(B) ROUNDING.— 

5 ‘‘(i) DOLLAR LIMITATION.—If the 

6 amount in paragraph (1) as increased 

7 under subparagraph (A) is not a multiple 

8 of $1,000, such amount shall be rounded 

9 to the nearest multiple of $1,000. 

10 ‘‘(ii) PHASEOUT AMOUNT.—If the 

11 amount in paragraph (2) as increased 

12 under subparagraph (A) is not a multiple 

13 of $10,000, such amount shall be rounded 

14 to the nearest multiple of $10,000.’’. 

15 (d) AUTHORITY TO REVOKE ELECTION MADE PER16 MANENT.—Paragraph (2) of section 179(c) is amended by 

17 striking ‘‘and before 2012’’. 

18 (e) TREATMENT OF CERTAIN COMPUTER SOFTWARE

19 AS SECTION 179 PROPERTY MADE PERMANENT.—Clause 

20 (ii) of section 179(d)(1)(A) is amended by striking ‘‘and 

21 before 2012’’. 

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

23 this section shall apply to taxable years beginning after 

24 December 31, 2011. 


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1 TITLE III—EXTENSION OF AL2 TERNATIVE MINIMUM TAX 

3 RELIEF 

4 SEC. 301. EXTENSION OF ALTERNATIVE MINIMUM TAX RE5 LIEF FOR NONREFUNDABLE PERSONAL 

6 CREDITS. 

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

8 amended— 

9 (1) by striking ‘‘2000, 2001, 2002, 2003, 2004, 

10 2005, 2006, 2007, 2008, or 2009’’ and inserting 

11 ‘‘the period beginning with calendar year 2000 and 

12 ending with calendar year 2011’’, and 

13 (2) by striking ‘‘2009’’ in the heading thereof 

14 and inserting ‘‘2011’’. 

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

16 this section shall apply to taxable years beginning after 

17 December 31, 2009. 

18 SEC. 302. EXTENSION OF INCREASED ALTERNATIVE MIN19 IMUM TAX EXEMPTION AMOUNT. 

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

21 amended— 

22 (1) by striking ‘‘($70,950 in the case of taxable 

23 years beginning in 2009)’’ in subparagraph (A) and 

24 inserting ‘‘($72,450 in the case of taxable years be25 ginning in 2010 or 2011)’’, and 


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1 (2) by striking ‘‘($46,700 in the case of taxable 

2 years beginning in 2009)’’ in subparagraph (B) and 

3 inserting ‘‘($47,450 in the case of taxable years be4 ginning in 2010 or 2011)’’. 

5 (b) NONAPPLICATION OF EGTRRA SUNSET.—Sec6 tion 901 of the Economic Growth and Tax Relief Rec7 onciliation Act of 2001 shall not apply to the amendments 

8 made by section 701 of such Act. 

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

10 this section shall apply to taxable years beginning after 

11 December 31, 2009. 

12 TITLE IV—BUDGETARY 

13 PROVISION 

14 SEC. 401. PAYGO COMPLIANCE. 

15 The budgetary effects of this Act, for the purpose of 

16 complying with the Statutory Pay-As-You-Go Act of 2010, 

17 shall be determined by reference to the latest statement 

18 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

19 Act, submitted for printing in the Congressional Record 

20 by the Chairman of the House Budget Committee, pro21 vided that such statement has been submitted prior to the 

22 vote on passage. 

Æ 


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