II 

113TH CONGRESS 

2D SESSION S. 2292 

To amend the Higher Education Act of 1965 to provide for the refinancing 

of certain Federal student loans, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 6, 2014 

Ms. WARREN (for herself, Mrs. BOXER, Mrs. MURRAY, Mr. DURBIN, Mr. 

REED, Ms. LANDRIEU, Ms. STABENOW, Mr. BROWN, Mr. WHITEHOUSE, 

Mr. UDALL of Colorado, Mr. UDALL of New Mexico, Mrs. SHAHEEN, Mr. 

MERKLEY, Mr. BEGICH, Mrs. GILLIBRAND, Mr. FRANKEN, Mr. 

BLUMENTHAL, Mr. SCHATZ, Ms. BALDWIN, Mr. MURPHY, Ms. HIRONO, 

Ms. HEITKAMP, Mr. MARKEY, Mr. BOOKER, Mr. SANDERS, Mr. LEAHY, 

and Mr. HEINRICH) introduced the following bill; which was read twice 

and referred to the Committee on Finance 

A BILL 

To amend the Higher Education Act of 1965 to provide 

for the refinancing of certain Federal student loans, 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 ‘‘Bank on Students 

5 Emergency Loan Refinancing Act’’. 


smartinez on DSK6TPTVN1PROD with BILLS
2 

•S 2292 IS

1 SEC. 2. REFINANCING PROGRAMS. 

2 (a) PROGRAM AUTHORITY.—Section 451(a) of the 

3 Higher Education Act of 1965 (20 U.S.C. 1087a(a)) is 

4 amended— 

5 (1) by striking ‘‘and (2)’’ and inserting ‘‘(2)’’; 

6 and 

7 (2) by inserting ‘‘; and (3) to make loans under 

8 section 460A and section 460B’’ after ‘‘section 

9 459A’’. 

10 (b) REFINANCING PROGRAM.—Part D of title IV of 

11 the Higher Education Act of 1965 (20 U.S.C. 1087a et 

12 seq.) is amended by adding at the end the following: 

13 ‘‘SEC. 460A. REFINANCING FFEL AND FEDERAL DIRECT 

14 LOANS. 

15 ‘‘(a) IN GENERAL.—Beginning not later than 180 

16 days after the date of enactment of the Bank on Students 

17 Emergency Loan Refinancing Act, the Secretary shall es18 tablish a program under which the Secretary, upon the 

19 receipt of an application from a qualified borrower, re20 issues the borrower’s original loan under this part or part 

21 B as a loan under this part, in accordance with the provi22 sions of this section, in order to permit the borrower to 

23 obtain the interest rate provided under subsection (c). 

24 ‘‘(b) REISSUING LOANS.— 

25 ‘‘(1) FEDERAL DIRECT LOANS.—Upon applica26 tion of a qualified borrower, the Secretary shall reVerDate Mar 15 2010 23:43 May 06, 2014 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2292.IS S2292

smartinez on DSK6TPTVN1PROD with BILLS
3 

•S 2292 IS

1 issue a Federal Direct Stafford Loan, a Federal Di2 rect Unsubsidized Stafford Loan, a Federal Direct 

3 PLUS Loan, or a Federal Direct Consolidation 

4 Loan of the qualified borrower, for which the first 

5 disbursement was made, or the application for the 

6 consolidation loan was received before July 1, 2013, 

7 in an amount equal to the sum of— 

8 ‘‘(A) the unpaid principal, accrued unpaid 

9 interest, and late charges of the original loan; 

10 and 

11 ‘‘(B) the administrative fee under sub12 section (d)(3). 

13 ‘‘(2) DISCHARGING AND REISSUING FFEL PRO14 GRAM LOANS AS REFINANCED FEDERAL DIRECT

15 LOANS.—Upon application of a qualified borrower 

16 for any loan that was made, insured, or guaranteed 

17 under part B and for which the first disbursement 

18 was made, or the application for the consolidation 

19 loan was received, before July 1, 2010, the Secretary 

20 shall reissue such loan as a loan under this part, in 

21 an amount equal to the sum of the unpaid principal, 

22 accrued unpaid interest, and late charges of the 

23 original loan and the administrative fee under sub24 section (d)(3), to the borrower in accordance with 

25 the following: 


smartinez on DSK6TPTVN1PROD with BILLS
4 

•S 2292 IS

1 ‘‘(A) The Secretary shall pay the proceeds 

2 of such reissued loan to the eligible lender of 

3 the loan made, insured, or guaranteed under 

4 part B, in order to discharge the borrower from 

5 any remaining obligation to the lender with re6 spect to the original loan. 

7 ‘‘(B) The Secretary shall reissue— 

8 ‘‘(i) a loan originally made, insured, 

9 or guaranteed under section 428 as a Fed10 eral Direct Stafford Loan; 

11 ‘‘(ii) a loan originally made, insured, 

12 or guaranteed under section 428B as a 

13 Federal Direct PLUS Loan; 

14 ‘‘(iii) a loan originally made, insured, 

15 or guaranteed under section 428H as a 

16 Federal Direct Unsubsidized Stafford 

17 Loan; and 

18 ‘‘(iv) a loan originally made, insured, 

19 or guaranteed under section 428C as a 

20 Federal Direct Consolidation Loan. 

21 ‘‘(C) The interest rate for each loan re22 issued under this paragraph shall be the rate 

23 provided under subsection (c). 

24 ‘‘(c) INTEREST RATES.— 


smartinez on DSK6TPTVN1PROD with BILLS
5 

•S 2292 IS

1 ‘‘(1) IN GENERAL.—The interest rate for the 

2 reissued Federal Direct Stafford Loans, Federal Di3 rect Unsubsidized Stafford Loans, Federal Direct 

4 PLUS Loans, and Federal Direct Consolidation 

5 Loans, shall be a rate equal to— 

6 ‘‘(A) in any case where the original loan 

7 was a loan under section 428 or 428H, a Fed8 eral Direct Stafford loan, or a Federal Direct 

9 Unsubsidized Stafford Loan, that was issued to 

10 an undergraduate student, a rate equal to the 

11 rate for Federal Direct Stafford Loans and 

12 Federal Direct Unsubsidized Stafford Loans 

13 issued to undergraduate students for the 12- 

14 month period beginning on July 1, 2013, and 

15 ending on June 30, 2014; 

16 ‘‘(B) in any case where the original loan 

17 was a loan under section 428 or 428H, a Fed18 eral Direct Stafford Loan, or a Federal Direct 

19 Unsubsidized Stafford Loan, that was issued to 

20 a graduate or professional student, a rate equal 

21 to the rate for Federal Direct Unsubsidized 

22 Stafford Loans issued to graduate or profes23 sional students for the 12-month period begin24 ning on July 1, 2013, and ending on June 30, 

25 2014; 


smartinez on DSK6TPTVN1PROD with BILLS
6 

•S 2292 IS

1 ‘‘(C) in any case where the original loan 

2 was a loan under section 428B or a Federal Di3 rect PLUS Loan, a rate equal to the rate for 

4 Federal Direct PLUS Loans for the 12-month 

5 period beginning on July 1, 2013, and ending 

6 on June 30, 2014; and 

7 ‘‘(D) in any case where the original loan 

8 was a loan under section 428C or a Federal Di9 rect Consolidation Loan, a rate equal to the 

10 rate for Federal Direct PLUS Loans for the 

11 12-month period beginning on July 1, 2013, 

12 and ending on June 30, 2014. 

13 ‘‘(2) FIXED RATE.—The applicable rate of in14 terest determined under paragraph (1) for a re15 issued loan under this section shall be fixed for the 

16 period of the loan. 

17 ‘‘(d) TERMS AND CONDITIONS OF LOANS.— 

18 ‘‘(1) IN GENERAL.—A loan that is reissued 

19 under this section shall have the same terms and 

20 conditions as the original loan, except as otherwise 

21 provided in this section. 

22 ‘‘(2) NO AUTOMATIC EXTENSION OF REPAY23 MENT PERIOD.—Reissuing a loan under this section 

24 shall not result in the extension of the duration of 

25 the repayment period of the loan, and the borrower 


smartinez on DSK6TPTVN1PROD with BILLS
7 

•S 2292 IS

1 shall retain the same repayment term that was in ef2 fect on the original loan. Nothing in this paragraph 

3 shall be construed to prevent a borrower from elect4 ing a different repayment plan at any time in ac5 cordance with section 455(d)(3). 

6 ‘‘(3) ADMINISTRATIVE FEE.—The Secretary 

7 shall charge the borrower of a loan reissued under 

8 this section an administrative fee of not more than 

9 0.5 percent of the sum of the unpaid principal, and 

10 accrued unpaid interest and late charges, of the 

11 original loan. 

12 ‘‘(e) DEFINITION OF QUALIFIED BORROWER.— 

13 ‘‘(1) IN GENERAL.—For purposes of this sec14 tion, the term ‘qualified borrower’ means a bor15 rower— 

16 ‘‘(A) of a loan under this part or part B 

17 for which the first disbursement was made, or 

18 the application for a consolidation loan was re19 ceived, before July 1, 2013; and 

20 ‘‘(B) who meets the eligibility requirements 

21 based on income or debt-to-income ratio estab22 lished by the Secretary. 

23 ‘‘(2) INCOME REQUIREMENTS.—Not later than 

24 180 days after the date of enactment of the Bank 

25 on Students Emergency Loan Refinancing Act, the 


smartinez on DSK6TPTVN1PROD with BILLS
8 

•S 2292 IS

1 Secretary shall establish eligibility requirements 

2 based on income or debt-to-income ratio that take 

3 into consideration providing access to refinancing 

4 under this section for borrowers with the greatest fi5 nancial need. 

6 ‘‘(f) EXPIRATION OF AUTHORITY.—The Secretary’s 

7 authority to reissue loans under this section shall expire 

8 on the date that is determined in accordance with section 

9 4 of the Bank on Students Emergency Loan Refinancing 

10 Act. 

11 ‘‘SEC. 460B. FEDERAL DIRECT REFINANCED PRIVATE LOAN 

12 PROGRAM. 

13 ‘‘(a) DEFINITIONS.—In this section: 

14 ‘‘(1) ELIGIBLE PRIVATE EDUCATION LOAN.— 

15 The term ‘eligible private education loan’ means a 

16 private education loan, as defined in section 140 of 

17 the Truth in Lending Act (15 U.S.C. 1650), that— 

18 ‘‘(A) was disbursed to the borrower before 

19 July 1, 2013; and 

20 ‘‘(B) was for the borrower’s own postsec21 ondary educational expenses for an eligible pro22 gram at an institution of higher education par23 ticipating in the loan program under this part, 

24 as of the date that the loan was disbursed. 


smartinez on DSK6TPTVN1PROD with BILLS
9 

•S 2292 IS

1 ‘‘(2) FEDERAL DIRECT REFINANCED PRIVATE

2 LOAN.—The term ‘Federal Direct Refinanced Pri3 vate Loan’ means a loan issued under subsection 

4 (b)(1). 

5 ‘‘(3) PRIVATE EDUCATIONAL LENDER.—The 

6 term ‘private educational lender’ has the meaning 

7 given the term in section 140 of the Truth in Lend8 ing Act (15 U.S.C. 1650). 

9 ‘‘(4) QUALIFIED BORROWER.—The term ‘quali10 fied borrower’ means an individual who— 

11 ‘‘(A) has an eligible private education loan; 

12 ‘‘(B) has been current on payments on the 

13 eligible private education loan for the 6 months 

14 prior to the date of the qualified borrower’s ap15 plication for refinancing under this section, and 

16 is in good standing on the loan at the time of 

17 such application; 

18 ‘‘(C) is not in default on the eligible pri19 vate education loan or on any loan made, in20 sured, or guaranteed under this part or part B 

21 or E; and 

22 ‘‘(D) meets the eligibility requirements 

23 based on income or debt-to-income ratio estab24 lished by the Secretary under subsection (b)(2). 

25 ‘‘(b) PROGRAM AUTHORIZED.— 


smartinez on DSK6TPTVN1PROD with BILLS
10 

•S 2292 IS

1 ‘‘(1) IN GENERAL.—The Secretary, in consulta2 tion with the Secretary of the Treasury, shall carry 

3 out a program under which the Secretary, upon ap4 plication by a qualified borrower who has an eligible 

5 private education loan, shall issue such borrower a 

6 loan under this part in accordance with the fol7 lowing: 

8 ‘‘(A) The loan issued under this program 

9 shall be in an amount equal to the sum of the 

10 unpaid principal, accrued unpaid interest, and 

11 late charges of the private education loan and 

12 the origination fee under subsection (f). 

13 ‘‘(B) The Secretary shall pay the proceeds 

14 of the loan issued under this program to the 

15 private educational lender of the private edu16 cation loan, in order to discharge the qualified 

17 borrower from any remaining obligation to the 

18 lender with respect to the original loan. 

19 ‘‘(C) The Secretary shall require that the 

20 qualified borrower undergo loan counseling that 

21 provides all of the information and counseling 

22 required under clauses (i) through (viii) of sec23 tion 485(b)(1)(A) before the loan is reissued in 

24 accordance with this section, and before the 


smartinez on DSK6TPTVN1PROD with BILLS
11 

•S 2292 IS

1 proceeds of such loan are paid to the private 

2 educational lender. 

3 ‘‘(D) The Secretary shall issue the loan as 

4 a Federal Direct Refinanced Private Loan, 

5 which shall have the same terms, conditions, 

6 and benefits as a Federal Direct Unsubsidized 

7 Stafford Loan, except as otherwise provided in 

8 this section. 

9 ‘‘(2) INCOME REQUIREMENTS.—Not later than 

10 180 days after the date of enactment of the Bank 

11 on Students Emergency Loan Refinancing Act, the 

12 Secretary shall establish eligibility requirements 

13 based on income or debt-to-income ratio that take 

14 into consideration providing access to refinancing 

15 under this section for borrowers with the greatest fi16 nancial need. 

17 ‘‘(c) INTEREST RATE.— 

18 ‘‘(1) IN GENERAL.—The interest rate for a 

19 Federal Direct Refinanced Private Loan is— 

20 ‘‘(A) in the case of a Federal Direct Refi21 nanced Private Loan for a private education 

22 loan originally issued for undergraduate post23 secondary educational expenses, a rate equal to 

24 the rate for Federal Direct Stafford Loans and 

25 Federal Direct Unsubsidized Stafford Loans 


smartinez on DSK6TPTVN1PROD with BILLS
12 

•S 2292 IS

1 issued to undergraduate students for the 12- 

2 month period beginning on July 1, 2013, and 

3 ending on June 30, 2014; and 

4 ‘‘(B) in the case of a Federal Direct Refi5 nanced Private Loan for a private education 

6 loan originally issued for graduate or profes7 sional degree postsecondary educational ex8 penses, a rate equal to the rate for Federal Di9 rect Unsubsidized Stafford Loans issued to 

10 graduate or professional students for the 12- 

11 month period beginning on July 1, 2013, and 

12 ending on June 30, 2014. 

13 ‘‘(2) COMBINED UNDERGRADUATE AND GRAD14 UATE STUDY LOANS.—If a Federal Direct Refi15 nanced Private Loan is for a private educational 

16 loan originally issued for both undergraduate and 

17 graduate or professional postsecondary educational 

18 expenses, the interest rate shall be a rate equal to 

19 the rate for Federal Direct PLUS Loans for the 12- 

20 month period beginning on July 1, 2013, and ending 

21 on June 30, 2014. 

22 ‘‘(3) FIXED RATE.—The applicable rate of in23 terest determined under this subsection for a Fed24 eral Direct Refinanced Private Loan shall be fixed 

25 for the period of the loan. 


smartinez on DSK6TPTVN1PROD with BILLS
13 

•S 2292 IS

1 ‘‘(d) NO INCLUSION IN AGGREGATE LIMITS.—The 

2 amount of a Federal Direct Refinanced Private Loan, or 

3 a Federal Direct Consolidated Loan to the extent such 

4 loan was used to repay a Federal Direct Refinanced Pri5 vate Loan, shall not be included in calculating a bor6 rower’s annual or aggregate loan limits under section 428 

7 or 428H. 

8 ‘‘(e) NO ELIGIBILITY FOR SERVICE-RELATED RE9 PAYMENT.—Notwithstanding sections 428K(a)(2)(A), 

10 428L(b)(2), 455(m)(3)(A), and 460(b), a Federal Direct 

11 Refinanced Private Loan, or any Federal Direct Consoli12 dation Loan to the extent such loan was used to repay 

13 a Federal Direct Refinanced Private Loan, shall not be 

14 eligible for any loan repayment or loan forgiveness pro15 gram under section 428K, 428L, or 460 or for the repay16 ment plan for public service employees under section 

17 455(m). 

18 ‘‘(f) ORIGINATION FEE.—The Secretary shall charge 

19 the borrower of a Federal Direct Refinanced Private Loan 

20 an origination fee that equals the origination fee charged 

21 for Federal Direct Unsubsidized Stafford Loans disbursed 

22 on the date upon which the Federal Direct Refinanced 

23 Private Loan is issued. 

24 ‘‘(g) EXPIRATION OF AUTHORITY.—The Secretary’s 

25 authority to reissue loans under this section shall expire 


smartinez on DSK6TPTVN1PROD with BILLS
14 

•S 2292 IS

1 on the date that is determined in accordance with section 

2 4 of the Bank on Students Emergency Loan Refinancing 

3 Act.’’. 

4 (c) AMENDMENTS TO PUBLIC SERVICE REPAYMENT

5 PLAN PROVISIONS.—Section 455(m) of the Higher Edu6 cation Act of 1965 (20 U.S.C. 1087e(m)) is amended— 

7 (1) by redesignating paragraphs (3) and (4) as 

8 paragraphs (4) and (5), respectively; 

9 (2) by inserting after paragraph (2) the fol10 lowing: 

11 ‘‘(3) SPECIAL RULES FOR SECTION 460A

12 LOANS.— 

13 ‘‘(A) REFINANCED FEDERAL DIRECT

14 LOANS.—Notwithstanding paragraph (1), in de15 termining the number of monthly payments 

16 that meet the requirements of such paragraph 

17 for an eligible Federal Direct Loan reissued 

18 under section 460A that was originally a loan 

19 under this part, the Secretary shall include all 

20 monthly payments made on the original loan 

21 that meet the requirements of such paragraph. 

22 ‘‘(B) REFINANCED FFEL LOANS.—In the 

23 case of an eligible Federal Direct Loan reissued 

24 under section 460A that was originally a loan 

25 under part B, only monthly payments made 


smartinez on DSK6TPTVN1PROD with BILLS
15 

•S 2292 IS

1 after the date on which the loan was reissued 

2 may be included for purposes of paragraph 

3 (1).’’; and 

4 (3) in paragraph (4)(A) (as redesignated by 

5 paragraph (1)), by inserting ‘‘(including any Federal 

6 Direct Stafford Loan, Federal Direct PLUS Loan, 

7 Federal Direct Unsubsidized Stafford Loan, or Fed8 eral Direct Consolidation Loan reissued under sec9 tion 460A)’’ before the period at the end. 

10 (d) INCOME-BASED REPAYMENT.—Section 493C of 

11 the Higher Education Act of 1965 (20 U.S.C. 1098e) is 

12 amended by adding at the end the following: 

13 ‘‘(f) SPECIAL RULE FOR REFINANCED LOANS.— 

14 ‘‘(1) REFINANCED FEDERAL DIRECT AND FFEL

15 LOANS.—In calculating the period of time during 

16 which a borrower of a loan that is reissued under 

17 section 460A has made monthly payments for pur18 poses of subsection (b)(7), the Secretary shall deem 

19 the period to include all monthly payments made for 

20 the original loan, and all monthly payments made 

21 for the reissued loan, that otherwise meet the re22 quirements of this section. 

23 ‘‘(2) FEDERAL DIRECT REFINANCED PRIVATE

24 LOANS.—In calculating the period of time during 

25 which a borrower of a Federal Direct Refinanced 


smartinez on DSK6TPTVN1PROD with BILLS
16 

•S 2292 IS

1 Private Loan under section 460B has made monthly 

2 payments for purposes of subsection (b)(7), the Sec3 retary shall include only payments— 

4 ‘‘(A) that are made after the date of the 

5 issuance of the Federal Direct Refinanced Pri6 vate Loan; and 

7 ‘‘(B) that otherwise meet the requirements 

8 of this section.’’. 

9 SEC. 3. FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS. 

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

11 Internal Revenue Code of 1986 is amended by adding at 

12 the end the following new part: 

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

14 TAXPAYERS 

‘‘Sec. 59B. Fair share tax. 

15 ‘‘SEC. 59B. FAIR SHARE TAX. 

16 ‘‘(a) GENERAL RULE.— 

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

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

19 taxable year (in addition to any other tax imposed 

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

21 ‘‘(A) the amount determined under para22 graph (2), and 

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


smartinez on DSK6TPTVN1PROD with BILLS
17 

•S 2292 IS

1 ‘‘(i) the numerator of which is the ex2 cess of— 

3 ‘‘(I) the taxpayer’s adjusted 

4 gross income, over 

5 ‘‘(II) the dollar amount in effect 

6 under subsection (c)(1), and 

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

8 dollar amount in effect under subsection 

9 (c)(1). 

10 ‘‘(2) AMOUNT OF TAX.—The amount of tax de11 termined under this paragraph is an amount equal 

12 to the excess (if any) of— 

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

14 taxable year, over 

15 ‘‘(B) the excess of— 

16 ‘‘(i) the sum of— 

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

18 defined in section 26(b)) for the tax19 able year, 

20 ‘‘(II) the tax imposed by section 

21 55 for the taxable year, plus 

22 ‘‘(III) the payroll tax for the tax23 able year, over 


smartinez on DSK6TPTVN1PROD with BILLS
18 

•S 2292 IS

1 ‘‘(ii) the credits allowable under part 

2 IV of subchapter A (other than sections 

3 27(a), 31, and 34). 

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

5 of this section— 

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

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

8 ‘‘(A) the adjusted gross income of the tax9 payer, over 

10 ‘‘(B) the modified charitable contribution 

11 deduction for the taxable year. 

12 ‘‘(2) MODIFIED CHARITABLE CONTRIBUTION

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

14 ‘‘(A) IN GENERAL.—The modified chari15 table contribution deduction for any taxable 

16 year is an amount equal to the amount which 

17 bears the same ratio to the deduction allowable 

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

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

20 ‘‘(i) the amount of itemized deduc21 tions allowable under the regular tax (as 

22 defined in section 55) for such taxable 

23 year, determined after the application of 

24 section 68, bears to 


smartinez on DSK6TPTVN1PROD with BILLS
19 

•S 2292 IS

1 ‘‘(ii) such amount, determined before 

2 the application of section 68. 

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

4 case of any individual who does not elect to 

5 itemize deductions for the taxable year, the 

6 modified charitable contribution deduction shall 

7 be zero. 

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

9 section— 

10 ‘‘(1) IN GENERAL.—The term ‘high-income tax11 payer’ means, with respect to any taxable year, any 

12 taxpayer (other than a corporation) with an adjusted 

13 gross income for such taxable year in excess of 

14 $1,000,000 (50 percent of such amount in the case 

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

16 ‘‘(2) INFLATION ADJUSTMENT.— 

17 ‘‘(A) IN GENERAL.—In the case of a tax18 able year beginning after 2015, the $1,000,000 

19 amount under paragraph (1) shall be increased 

20 by an amount equal to— 

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

22 ‘‘(ii) the cost-of-living adjustment de23 termined under section 1(f)(3) for the cal24 endar year in which the taxable year be25 gins, determined by substituting ‘calendar 


smartinez on DSK6TPTVN1PROD with BILLS
20 

•S 2292 IS

1 year 2014’ for ‘calendar year 1992’ in sub2 paragraph (B) thereof. 

3 ‘‘(B) ROUNDING.—If any amount as ad4 justed under subparagraph (A) is not a multiple 

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

6 the next lowest multiple of $10,000. 

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

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

9 to the excess of— 

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

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

12 the extent such taxes are attributable to the rate of 

13 tax in effect under section 3101) with respect to 

14 such taxable year or wages or compensation received 

15 during the taxable year, over 

16 ‘‘(2) the deduction allowable under section 

17 164(f) for such taxable year. 

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

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

20 trust, adjusted gross income shall be computed in the 

21 manner described in section 67(e). 

22 ‘‘(f) NOT TREATED AS TAX IMPOSED BY THIS CHAP23 TER FOR CERTAIN PURPOSES.—The tax imposed under 

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

25 chapter for purposes of determining the amount of any 


smartinez on DSK6TPTVN1PROD with BILLS
21 

•S 2292 IS

1 credit under this chapter (other than the credit allowed 

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

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

4 the Internal Revenue Code of 1986 is amended by redesig5 nating subparagraphs (C) through (X) as subparagraphs 

6 (D) through (Y), respectively, and by inserting after sub7 paragraph (B) the following new subparagraph: 

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

9 tax),’’. 

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

11 subchapter A of chapter 1 of the Internal Revenue Code 

12 of 1986 is amended by adding at the end the following 

13 new item: 

‘‘PART VII—FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS’’. 

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

15 this section shall apply to taxable years beginning after 

16 December 31, 2014. 

17 SEC. 4. DEFICIT NEUTRAL IMPLEMENTATION OF STUDENT 

18 LOAN REFINANCING PROGRAMS. 

19 (a) AMOUNT OF REVENUE.—The Secretary of Edu20 cation shall estimate the amount that is equal to the 

21 amount of the net increase in revenue received in the 

22 Treasury during the 10-year period beginning on the date 

23 of enactment of the Bank on Students Emergency Loan 

24 Refinancing Act attributable to the amendments made by 


smartinez on DSK6TPTVN1PROD with BILLS
22 

•S 2292 IS

1 section 3 of the Bank on Students Emergency Loan Refi2 nancing Act. 

3 (b) DEFICIT-NEUTRAL TERMINATION OF THE REFI4 NANCING PROGRAM.—The Secretary of Education shall 

5 terminate the refinancing programs carried out under sec6 tions 460A and 460B of the Higher Education Act of 

7 1965 on the date that the net cost of carrying out such 

8 refinancing programs is equal to the amount of additional 

9 revenue estimated under subsection (a). 

10 (c) METHODOLOGY.—When estimating cost and rev11 enue under this section, the Secretary shall utilize the ac12 counting methods and assumptions that are used by the 

13 Congressional Budget Office, as of the date of enactment 

14 of this Act, to make such estimations. 

Æ 


smartinez on DSK6TPTVN1PROD with BILLS