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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 388 Placed on Calendar Senate (PCS)]

                                                        Calendar No. 18
113th CONGRESS
  1st Session
                                 S. 388

 To appropriately limit sequestration, to eliminate tax loopholes, and 
                          for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           February 26, 2013

 Mr. Reid (for Ms. Mikulski (for herself, Mrs. Murray, and Mr. Reid)) 
 introduced the following bill; which was read twice and placed on the 
          calendar pursuant to the order of February 14, 2013

_______________________________________________________________________

                                 A BILL

 
 To appropriately limit sequestration, to eliminate tax loopholes, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Family Economic Protection 
Act of 2013''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                       TITLE I--BUDGET PROVISIONS

Sec. 101. Adjustments to discretionary spending limits.
Sec. 102. Treatment of sequester.
Sec. 103. Budgetary effects.
                    TITLE II--AGRICULTURAL PROGRAMS

Sec. 201. Extension of agricultural programs.
Sec. 202. Supplemental agricultural disaster assistance programs.
Sec. 203. Noninsured crop assistance program.
Sec. 204. Exemption of agriculture, nutrition, and forestry from BCA 
                            sequestration.
Sec. 205. Effective date.
                     TITLE III--REVENUE PROVISIONS

Sec. 301. Reference.
Sec. 302. Fair share tax on high-income taxpayers.
Sec. 303. Denial of deduction for outsourcing expenses.
Sec. 304. Modifications to the tax on petroleum.

                       TITLE I--BUDGET PROVISIONS

SEC. 101. ADJUSTMENTS TO DISCRETIONARY SPENDING LIMITS.

    (a) In General.--Section 251(c) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 901(c)) is amended by 
striking paragraphs (2) through (10) and inserting the following:
            ``(2) For fiscal year 2013--
                    ``(A) for the security category, $684,000,000,000 
                in new budget authority; and
                    ``(B) for the nonsecurity category, 
                $359,000,000,000 in new budget authority;
            ``(3) for fiscal year 2014--
                    ``(A) for the revised security category, 
                $552,000,000,000 in new budget authority; and
                    ``(B) for the revised nonsecurity category, 
                $506,000,000,000 in new budget authority;
            ``(4) for fiscal year 2015--
                    ``(A) for the revised security category, 
                $563,040,000,000 in new budget authority; and
                    ``(B) for the revised nonsecurity category, 
                $520,000,000,000 in new budget authority;
            ``(5) for fiscal year 2016--
                    ``(A) for the revised security category, 
                $574,301,000,000 in new budget authority; and
                    ``(B) for the revised nonsecurity category, 
                $530,000,000,000 in new budget authority;
            ``(6) for fiscal year 2017--
                    ``(A) for the revised security category, 
                $586,361,000,000 in new budget authority; and
                    ``(B) for the revised nonsecurity category, 
                $541,000,000,000 in new budget authority;
            ``(7) for fiscal year 2018--
                    ``(A) for the revised security category, 
                $598,675,000,000 in new budget authority; and
                    ``(B) for the revised nonsecurity category, 
                $553,000,000,000 in new budget authority;
            ``(8) for fiscal year 2019--
                    ``(A) for the revised security category, 
                $611,846,000,000 in new budget authority; and
                    ``(B) for the revised nonsecurity category, 
                $566,000,000,000 in new budget authority;
            ``(9) for fiscal year 2020--
                    ``(A) for the revised security category, 
                $625,306,000,000 in new budget authority; and
                    ``(B) for the revised nonsecurity category, 
                $578,000,000,000 in new budget authority; and
            ``(10) for fiscal year 2021--
                    ``(A) for the revised security category, 
                $638,972,000,000 in new budget authority; and
                    ``(B) for the revised nonsecurity category, 
                $590,000,000,000 in new budget authority;''.
    (b) Technical and Conforming Amendments.--Part C of title II of the 
Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900 
et seq.) is amended--
            (1) in section 250(c)(4) (2 U.S.C. 900(c)(4)), by adding at 
        the end the following:
            ``(D) The term `revised security category' means 
        discretionary appropriations in budget function 050.
            ``(E) The term `revised nonsecurity category' means 
        discretionary appropriations other than in budget function 
        050.''; and
            (2) in section 251A (2 U.S.C. 901A)--
                    (A) by striking the matter preceding paragraph (1) 
                and inserting the following: ``The discretionary 
                spending caps under section 251(c) shall be applied in 
                accordance with this section as follows:'';
                    (B) by striking paragraphs (1) and (2);
                    (C) by redesignating paragraphs (3) through (11) as 
                paragraphs (1) through (9), respectively;
                    (D) in paragraph (2), as redesignated, by striking 
                ``paragraph (3)'' and inserting ``paragraph (1)'';
                    (E) in paragraph (3), as redesignated, by striking 
                ``paragraph (4)'' each place it appears and inserting 
                ``paragraph (2)'';
                    (F) in paragraph (4), as redesignated, by striking 
                ``paragraph (4)'' each place it appears and inserting 
                ``paragraph (2)'';
                    (G) in paragraph (5), as redesignated--
                            (i) by striking ``paragraph (5)'' each 
                        place it appears and inserting ``paragraph 
                        (3)''; and
                            (ii) by striking ``paragraph (6)'' each 
                        place it appears and inserting ``paragraph 
                        (4)'';
                    (H) in paragraph (6), as redesignated--
                            (i) by striking ``paragraph (4)'' and 
                        inserting ``paragraph (2)''; and
                            (ii) by striking ``paragraphs (5) and (6)'' 
                        and inserting ``paragraphs (3) and (4)'';
                    (I) in paragraph (7), as redesignated--
                            (i) by striking ``paragraph (8)'' and 
                        inserting ``paragraph (6)''; and
                            (ii) by striking ``paragraph (6)'' each 
                        place it appears and inserting ``paragraph 
                        (4)''; and
                    (J) in paragraph (9), as redesignated, by striking 
                ``paragraph (4)'' and inserting ``paragraph (2)''.

SEC. 102. TREATMENT OF SEQUESTER.

    (a) Adjustment.--Section 251A(1) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 901a(1)), as 
redesignated by section 101 of this Act, is amended--
            (1) in subparagraph (D), by striking ``and'' at the end;
            (2) in subparagraph (E)--
                    (A) by striking ``$24,000,000,000'' and inserting 
                ``$109,333,000,000''; and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
                    (C) by adding at the end the following:
                    ``(F) for fiscal year 2014, reducing the amount 
                calculated under subparagraphs (A) through (D) by 
                $25,500,000,000.''.
    (b) Postponement of Budget Control Act Sequester for Calendar Year 
2013.--
            (1) Repeal.--Section 901(e) of the American Taxpayer Relief 
        Act of 2012 (Public Law 112-240) is repealed.
            (2) BBEDCA.--Section 251A of the Balanced Budget and 
        Emergency Deficit Control Act (2 U.S.C. 901a) is amended--
                    (A) in paragraph (2), as redesignated by section 
                101 of this Act, by striking ``On March 1, 2013, for 
                fiscal year 2013, and in its sequestration preview 
                report for fiscal years 2014'' and inserting ``On 
                January 2, 2014, for fiscal year 2014, and in its 
                sequestration preview report for fiscal years 2015'';
                    (B) in paragraph (3), as redesignated by section 
                101 of this Act, by striking ``2013'' and inserting 
                ``2014'';
                    (C) in paragraph (4), as redesignated by section 
                101 of this Act, by striking ``2013'' and inserting 
                ``2014''; and
                    (D) in paragraph (5), as redesignated by section 
                101 of this Act--
                            (i) in subparagraph (A), by striking 
                        ``Fiscal year 2013.--On March 1, 2013, for 
                        fiscal year 2013'' and inserting ``Fiscal year 
                        2014.--On January 2, 2014, for fiscal year 
                        2014''; and
                            (ii) in subparagraph (B)--
                                    (I) by striking ``Fiscal years 
                                2014-2021'' and inserting ``Fiscal 
                                years 2015-2021''; and
                                    (II) by striking ``2014'' each 
                                place it appears and inserting 
                                ``2015''.

SEC. 103. BUDGETARY EFFECTS.

    (a) PAYGO Scorecard.--The budgetary effects of this Act shall not 
be entered on either PAYGO scorecard maintained pursuant to section 
4(d) of the Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 933(d)).
    (b) Senate PAYGO Scorecard.--The budgetary effects of this Act 
shall not be entered on any PAYGO scorecard maintained for purposes of 
section 201 of S. Con. Res. 21 (110th Congress).

                    TITLE II--AGRICULTURAL PROGRAMS

SEC. 201. EXTENSION OF AGRICULTURAL PROGRAMS.

    (a) Commodity Programs.--Section 701(b) of the American Taxpayer 
Relief Act of 2012 (Public Law 112-240; 126 Stat. 2362) is amended--
            (1) by striking ``(1) In general.--The terms'' and 
        inserting the following:
            ``(1) Covered and loan commodities.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the terms''; and
            (2) by adding at the end the following:
                    ``(B) Payment acres.--Notwithstanding any other 
                provision of law, in the case of direct payments for 
                the 2013 crop year, the payment acres in section 
                1001(11) and section 1301(5) of the Food, Conservation, 
                and Energy Act of 2008 (7 U.S.C. 8702(11), 8751(5)) 
                shall be 0 percent of the base acres for the covered 
                commodities and peanuts on a farm on which direct 
                payments are made.''.
    (b) Conservation Programs.--
            (1) Conservation stewardship program.--Notwithstanding 
        section 726 of the Consolidated and Further Continuing 
        Appropriations Act, 2012 (Public Law 112-55; 125 Stat. 584) and 
        section 101(a)(1) of the Continuing Appropriations Resolution, 
        2013 (Public Law 112-175; 126 Stat. 1313), the acreage 
        enrollment requirement in section 1238G(d)(1) of the Food 
        Security Act of 1985 (16 U.S.C. 3838g(d)(1)) shall apply for 
        fiscal year 2013.
            (2) Voluntary public access.--Section 1240R(f)(1) of the 
        Food Security Act of 1985 (16 U.S.C. 3839bb-5) is amended--
                    (A) in the heading, by striking ``Fiscal years 2009 
                through 2012'' and inserting ``Mandatory funding''; and
                    (B) by inserting ``, and $5,000,000 for fiscal year 
                2013'' before the period at the end.
            (3) Desert terminal lakes.--Section 2507 of the Farm 
        Security and Rural Investment Act of 2002 (43 U.S.C. 2211 note; 
        Public Law 107-171) is amended by adding at the end the 
        following:
    ``(c) Mandatory Funding.--Of the funds of the Commodity Credit 
Corporation, the Secretary of Agriculture shall use to carry out this 
section $35,000,000 for fiscal year 2013, to remain available until 
expended.''.
    (c) Supplemental Nutrition Assistance Program.--
            (1) Employment and training program.--Section 16(h)(1)(A) 
        of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(h)(1)(A)) 
        is amended by striking ``, except that for fiscal year 2013, 
        the amount shall be $79,000,000''.
            (2) Nutrition education.--Section 28(d)(1) of the Food and 
        Nutrition Act of 2008 (7 U.S.C. 2036a(d)(1)) is amended--
                    (A) in subparagraph (A), by adding ``and'' after 
                the semicolon at the end; and
                    (B) by striking subparagraphs (B) through (F) and 
                inserting the following:
                    ``(B) for fiscal year 2012 and each subsequent 
                fiscal year, the applicable amount during the preceding 
                fiscal year, as adjusted to reflect any increases for 
                the 12-month period ending the preceding June 30 in the 
                Consumer Price Index for All Urban Consumers published 
                by the Bureau of Labor Statistics of the Department of 
                Labor.''.
    (d) Research Programs.--
            (1) Organic agriculture research and extension 
        initiative.--Section 1672B(f) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5925b(f)) is 
        amended--
                    (A) in paragraph (1)--
                            (i) in the heading, by striking ``for 
                        fiscal years 2009 through 2012''; and
                            (ii) in subparagraph (B), by striking 
                        ``2012'' and inserting ``2013'';
                    (B) in paragraph (2)--
                            (i) in the heading, by striking ``for 
                        fiscal years 2009 through 2012''; and
                            (ii) by striking ``2012'' and inserting 
                        ``2013''; and
                    (C) by striking paragraph (3).
            (2) Specialty crop research initiative.--Section 412(h) of 
        the Agricultural Research, Extension, and Education Reform Act 
        of 1998 (7 U.S.C. 7632(h)) is amended--
                    (A) in paragraph (1)--
                            (i) in the heading, by striking ``for 
                        fiscal years 2008 through 2012''; and
                            (ii) by striking ``2012'' and inserting 
                        ``2013'';
                    (B) in paragraph (2)--
                            (i) in the heading, by striking ``for 
                        fiscal years 2008 through 2012''; and
                            (ii) by striking ``2012'' and inserting 
                        ``2013'';
                    (C) by striking paragraph (3); and
                    (D) by redesignating paragraphs (4) and (5) as 
                paragraphs (3) and (4), respectively.
            (3) Beginning farmer and rancher development program.--
        Section 7405(h) of the Farm Security and Rural Investment Act 
        of 2002 (7 U.S.C. 3319f(h)) is amended--
                    (A) in paragraph (1)--
                            (i) in the heading, by striking ``for 
                        fiscal years 2009 through 2012''; and
                            (ii) in subparagraph (B), by striking 
                        ``2012'' and inserting ``2013'';
                    (B) in paragraph (2)--
                            (i) in the heading, by striking ``for 
                        fiscal years 2008 through 2012''; and
                            (ii) by striking ``2012'' and inserting 
                        ``2013''; and
                    (C) by striking paragraph (3).
    (e) Energy Programs.--
            (1) Biobased markets program.--Section 9002(h)(1)(B) of the 
        Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
        8102(h)(1)(B)) is amended by striking ``2012'' and inserting 
        ``2013''.
            (2) Biorefinery assistance.--Section 9003(h)(1) of the Farm 
        Security and Rural Investment Act of 2002 (7 U.S.C. 8103(h)(1)) 
        is amended--
                    (A) in subparagraph (A), by striking ``and'' at the 
                end;
                    (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(C) $100,000,000 for fiscal year 2013.''.
            (3) Bioenergy program for advanced biofuels.--Section 
        9005(g)(1) of the Farm Security and Rural Investment Act of 
        2002 (7 U.S.C. 8105(g)(1)) is amended--
                    (A) in subparagraph (C), by striking ``and'' at the 
                end;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(E) $55,000,000 for fiscal year 2013.''.
            (4) Biodiesel fuel education program.--Section 9006(d)(1) 
        of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
        8106(d)(1)) is amended--
                    (A) in the heading, by striking ``Fiscal years 2009 
                through 2012.--'' and inserting ``Mandatory funding.--
                ''; and
                    (B) by striking ``2012'' and inserting ``2013.''
            (5) Rural energy for america program.--Section 9007(g)(1) 
        of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
        8107(g)(1)) is amended--
                    (A) in subparagraph (C), by striking ``and'' at the 
                end;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(E) $51,000,000 for fiscal year 2013.''.
            (6) Biomass research and development.--Section 9008(h)(1) 
        of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
        8108(h)(1)) is amended--
                    (A) in subparagraph (C), by striking ``and'' at the 
                end;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(E) $33,600,000 for fiscal year 2013.''.
            (7) Biomass crop assistance program.--Section 9011(f)(1) of 
        the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
        8111(f)) is amended--
                    (A) in the heading, by striking ``Fiscal years 2008 
                through 2012'' and inserting ``Mandatory funding''; and
                    (B) by inserting ``, and not more than $38,600,000 
                for fiscal year 2013'' after ``2012''.
    (f) Horticulture and Organic Agriculture Programs.--
            (1) Farmers market promotion program.--Section 6(e)(1) of 
        the Farmer-to-Consumer Direct Marketing Act of 1976 (7 U.S.C. 
        3005(e)(1)) is amended--
                    (A) in the heading, by striking ``Fiscal years 2008 
                through 2012.--'' and inserting ``Mandatory funding.--
                ''; and
                    (B) subparagraph (C), by striking ``and 2012'' and 
                inserting ``through 2013''.
            (2) National clean plant network.--Section 10202(e)(1) of 
        the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 
        7761(e)(1)) is amended--
                    (A) in the heading, by striking ``Fiscal years 2009 
                through 2012.--'' and inserting ``Mandatory funding.--
                ''; and
                    (B) by striking ``2012'' and inserting ``2013''.
            (3) National organic certification cost-share program.--
        Section 10606(d)(1) of the Farm Security and Rural Investment 
        Act of 2002 (7 U.S.C. 6523(d)(1)) is amended by--
                    (A) in the heading, by striking ``for fiscal years 
                2008 through 2012''; and
                    (B) by inserting ``, and $5,000,000 for fiscal year 
                2013'' after ``2012''.
            (4) Organic production and market data initiatives.--
        Section 7407(d) of the Farm Security and Rural Investment Act 
        of 2002 (7 U.S.C. 5925c(d)) is amended by striking paragraph 
        (1) and inserting the following:
            ``(1) Mandatory funding.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall use to carry out this 
        section, to remain available until expended--
                    ``(A) $5,000,000 for each fiscal year through 
                fiscal year 2012; and
                    ``(B) $1,000,000 for fiscal year 2013.''.
    (g) Outreach and Assistance for Socially Disadvantaged Farmers and 
Ranchers.--Section 2501(a)(4)(A) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 2279(a)(4)(A)) is 
amended--
            (1) in the heading, by striking ``Fiscal years 2009 through 
        2012.--'' and inserting ``Mandatory funding.--'';
            (2) in clause (i), by striking ``and'' at the end;
            (3) in clause (ii), by striking the period at the end and 
        inserting ``; and''; and
            (4) by adding at the end the following:
                            ``(iii) $15,000,000 for fiscal year 
                        2013.''.
    (h) Rural Development.--
            (1) Rural microentrepreneur assistance program.--Section 
        379E(d) of the Consolidated Farm and Rural Development Act (7 
        U.S.C. 2008s(d)) is amended--
                    (A) in paragraph (1)(B), by striking ``fiscal year 
                2012'' and inserting ``for each of fiscal years 2012 
                and 2013''; and
                    (B) in paragraph (2), by striking ``2012'' and 
                inserting ``2013''.
            (2) Value-added agricultural product market development 
        grants.--Section 231(b)(7) of the Agricultural Risk Protection 
        Act of 2000 (7 U.S.C. 1632a(b)(7)) is amended--
                    (A) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) Mandatory funding.--Of the funds of the 
                Commodity Credit Corporation, the Secretary shall make 
                available to carry out this subsection, to remain 
                available until expended--
                            ``(i) on October 1, 2008, $15,000,000; and
                            ``(ii) on October 1, 2012, $3,000,000.''; 
                        and
                    (B) in subparagraph (B), by striking ``2012'' and 
                inserting ``2013''.

SEC. 202. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE PROGRAMS.

    (a) In General.--Section 531 of the Federal Crop Insurance Act (7 
U.S.C. 1531) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)(A), by striking ``The 
                Secretary shall use such sums as are necessary from the 
                Trust Fund'' and inserting ``Of the funds of the 
                Commodity Credit Corporation, the Secretary shall use 
                such sums as are necessary for fiscal year 2012'';
                    (B) in paragraph (2)(A), in the matter preceding 
                clause (i), by striking ``60 percent'' and inserting 
                ``52 percent''; and
                    (C) in paragraph (4)(A)(ii), by striking ``15 
                percent'' and inserting ``100 percent'';
            (2) in subsection (c), by adding at the end the following:
            ``(4) Mandatory funding.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall use such sums as are 
        necessary to carry out this subsection for each of fiscal years 
        2012 and 2013.'';
            (3) in subsection (d), by adding at the end the following:
            ``(8) Mandatory funding.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall use such sums as are 
        necessary to carry out this subsection for each of fiscal years 
        2012 and 2013.'';
            (4) in subsection (e), by adding at the end the following:
            ``(4) Mandatory funding.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall use up to $5,000,000 to 
        carry out this subsection for each of fiscal years 2012 and 
        2013.'';
            (5) in subsection (f), by adding at the end the following:
            ``(6) Mandatory funding.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall use such sums as are 
        necessary to carry out this subsection for each of fiscal years 
        2012 and 2013.''; and
            (6) in subsection (i), by striking ``September 30, 2011'' 
        and inserting ``September 30, 2012''.
    (b) Effective Date.--The amendments made by subsection (a) take 
effect on October 1, 2011.

SEC. 203. NONINSURED CROP ASSISTANCE PROGRAM.

    (a) In General.--Section 196 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7333) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) In general.--
                    ``(A) Coverages.--In the case of an eligible crop 
                described in paragraph (2), the Secretary of 
                Agriculture shall operate a noninsured crop disaster 
                assistance program to provide coverages based on 
                individual yields (other than for value-loss crops) 
                equivalent to--
                            ``(i) catastrophic risk protection 
                        available under section 508(b) of the Federal 
                        Crop Insurance Act (7 U.S.C. 1508(b)); or
                            ``(ii) additional coverage available under 
                        subsections (c) and (h) of section 508 of that 
                        Act (7 U.S.C. 1508) that does not exceed 65 
                        percent.
                    ``(B) Administration.--The Secretary shall carry 
                out this section through the Farm Service Agency 
                (referred to in this section as the `Agency').''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) in clause (i), by striking 
                                ``and'' after the semicolon at the end;
                                    (II) by redesignating clause (ii) 
                                as clause (iii); and
                                    (III) by inserting after clause (i) 
                                the following:
                                            ``(ii) for which additional 
                                        coverage under subsections (c) 
                                        and (h) of section 508 of that 
                                        Act (7 U.S.C. 1508) is not 
                                        available; and''; and
                            (ii) in subparagraph (B)--
                                    (I) by inserting ``(except ferns)'' 
                                after ``floricultural'';
                                    (II) by inserting ``(except 
                                ferns)'' after ``ornamental nursery''; 
                                and
                                    (III) by striking ``(including 
                                ornamental fish)'' and inserting 
                                ``(including ornamental fish, but 
                                excluding tropical fish)'';
            (2) in subsection (d), by striking ``The Secretary'' and 
        inserting ``Subject to subsection (l), the Secretary'';
            (3) in subsection (k)(1)--
                    (A) in subparagraph (A), by striking ``$250'' and 
                inserting ``$260''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``$750'' and inserting 
                        ``$780''; and
                            (ii) by striking ``$1,875'' and inserting 
                        ``$1,950''; and
            (4) by adding at the end the following:
    ``(l) Payment Equivalent to Additional Coverage.--
            ``(1) In general.--The Secretary shall make available to a 
        producer eligible for noninsured assistance under this section 
        a payment equivalent to an indemnity for additional coverage 
        under subsections (c) and (h) of section 508 of the Federal 
        Crop Insurance Act (7 U.S.C. 1508) that does not exceed 65 
        percent, computed by multiplying--
                    ``(A) the quantity that is less than 50 to 65 
                percent of the established yield for the crop, as 
                determined by the Secretary, specified in increments of 
                5 percent;
                    ``(B) 100 percent of the average market price for 
                the crop, as determined by the Secretary; and
                    ``(C) a payment rate for the type of crop, as 
                determined by the Secretary, that reflects--
                            ``(i) in the case of a crop that is 
                        produced with a significant and variable 
                        harvesting expense, the decreasing cost 
                        incurred in the production cycle for the crop 
                        that is, as applicable--
                                    ``(I) harvested;
                                    ``(II) planted but not harvested; 
                                or
                                    ``(III) prevented from being 
                                planted because of drought, flood, or 
                                other natural disaster, as determined 
                                by the Secretary; or
                            ``(ii) in the case of a crop that is 
                        produced without a significant and variable 
                        harvesting expense, such rate as shall be 
                        determined by the Secretary.
            ``(2) Premium.--To be eligible to receive a payment under 
        this subsection, a producer shall pay--
                    ``(A) the service fee required by subsection (k); 
                and
                    ``(B) a premium for the applicable crop year that 
                is equal to--
                            ``(i) the product obtained by multiplying--
                                    ``(I) the number of acres devoted 
                                to the eligible crop;
                                    ``(II) the yield, as determined by 
                                the Secretary under subsection (e);
                                    ``(III) the coverage level elected 
                                by the producer;
                                    ``(IV) the average market price, as 
                                determined by the Secretary; and
                            ``(ii) 5.25-percent premium fee.
            ``(3) Limited resource, beginning, and socially 
        disadvantaged farmers.--The additional coverage made available 
        under this subsection shall be available to limited resource, 
        beginning, and socially disadvantaged producers, as determined 
        by the Secretary, in exchange for a premium that is 50 percent 
        of the premium determined for a producer under paragraph (2).
            ``(4) Additional availability.--
                    ``(A) In general.--As soon as practicable, the 
                Secretary shall make assistance available to producers 
                of an otherwise eligible crop described in subsection 
                (a)(2) that suffered losses--
                            ``(i) to a 2012 annual fruit crop grown on 
                        a bush or tree; and
                            ``(ii) in a county covered by a declaration 
                        by the Secretary of a natural disaster for 
                        production losses due to a freeze or frost.
                    ``(B) Assistance.--The Secretary shall make 
                assistance available under subparagraph (A) in an 
                amount equivalent to assistance available under 
                paragraph (1), less any fees not previously paid under 
                paragraph (2).''.
    (b) Termination Date.--
            (1) In general.--Effective October 1, 2017, subsection (a) 
        and the amendments made by subsection (a) (other than the 
        amendments made by clauses (i)(I) and (ii) of subsection 
        (a)(1)(B)) are repealed
            (2) Administration.--Effective October 1, 2017, section 196 
        of the Federal Agriculture Improvement and Reform Act of 1996 
        (7 U.S.C. 7333) shall be applied and administered as if 
        subsection (a) and the amendments made by subsection (a) (other 
        than the amendments made by clauses (i)(I) and (ii) of 
        subsection (a)(1)(B)) had not been enacted.

SEC. 204. EXEMPTION OF AGRICULTURE, NUTRITION, AND FORESTRY FROM BCA 
              SEQUESTRATION.

    Section 251A(6) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 (2 U.S.C. 901a(6)), as redesignated by section 101 
of this Act, is amended--
            (1) by striking ``On the date'' and inserting the 
        following:
                    ``(A) In general.--On the date'';
            (2) in subparagraph (A), as so designated, in the second 
        sentence, by inserting ``subparagraph (B) of this paragraph 
        and'' after ``the exemptions specified in''; and
            (3) by adding at the end the following:
                    ``(B) Exemption of agriculture, nutrition, and 
                forestry.--The following shall be exempt from reduction 
                under any order issued pursuant to this paragraph:
                            ``(i) All programs, projects, and 
                        activities of the Commodity Credit Corporation.
                            ``(ii) All programs, projects, and 
                        activities of the Federal Crop Insurance 
                        Corporation.
                            ``(iii) All programs, projects, and 
                        activities carried out under section 32 of the 
                        Act of August 24, 1935 (7 U.S.C. 612c).
                            ``(iv) All other direct spending accounts 
                        of the Department of Agriculture.''.

SEC. 205. EFFECTIVE DATE.

    Except as otherwise provided in this title, this title and the 
amendments made by this title take effect on the date of enactment of, 
and as if included in, the American Taxpayer Relief Act of 2012 (Public 
Law 112-240; 126 Stat. 2313).

                     TITLE III--REVENUE PROVISIONS

SEC. 301. REFERENCE.

    Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Internal Revenue Code of 
1986.

SEC. 302. FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS.

    (a) In General.--Subchapter A of chapter 1 is amended by adding at 
the end the following new part:

          ``PART VIII--FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS

``Sec. 59B. Fair share tax.

``SEC. 59B. FAIR SHARE TAX.

    ``(a) General Rule.--
            ``(1) Phase-in of tax.--In the case of any high-income 
        taxpayer, there is hereby imposed for a taxable year (in 
        addition to any other tax imposed by this subtitle) a tax equal 
        to the product of--
                    ``(A) the amount determined under paragraph (2), 
                and
                    ``(B) a fraction (not to exceed 1)--
                            ``(i) the numerator of which is the excess 
                        of--
                                    ``(I) the taxpayer's adjusted gross 
                                income, over
                                    ``(II) the dollar amount in effect 
                                under subsection (c)(1), and
                            ``(ii) the denominator of which is 
                        $4,000,000 ($2,000,000 in the case of a married 
                        individual who files a separate return).
            ``(2) Amount of tax.--The amount of tax determined under 
        this paragraph is an amount equal to the excess (if any) of--
                    ``(A) the tentative fair share tax for the taxable 
                year, over
                    ``(B) the excess of--
                            ``(i) the sum of--
                                    ``(I) the regular tax liability (as 
                                defined in section 26(b)) for the 
                                taxable year, determined without regard 
                                to any tax liability determined under 
                                this section,
                                    ``(II) the tax imposed by section 
                                55 for the taxable year, plus
                                    ``(III) the payroll tax for the 
                                taxable year, over
                            ``(ii) the credits allowable under part IV 
                        of subchapter A (other than sections 27(a), 31, 
                        and 34).
    ``(b) Tentative Fair Share Tax.--For purposes of this section--
            ``(1) In general.--The tentative fair share tax for the 
        taxable year is 30 percent of the excess of--
                    ``(A) the adjusted gross income of the taxpayer, 
                over
                    ``(B) the modified charitable contribution 
                deduction for the taxable year.
            ``(2) Modified charitable contribution deduction.--For 
        purposes of paragraph (1)--
                    ``(A) In general.--The modified charitable 
                contribution deduction for any taxable year is an 
                amount equal to the amount which bears the same ratio 
                to the deduction allowable under section 170 (section 
                642(c) in the case of a trust or estate) for such 
                taxable year as--
                            ``(i) the amount of itemized deductions 
                        allowable under the regular tax (as defined in 
                        section 55) for such taxable year, determined 
                        after the application of section 68, bears to
                            ``(ii) such amount, determined before the 
                        application of section 68.
                    ``(B) Taxpayer must itemize.--In the case of any 
                individual who does not elect to itemize deductions for 
                the taxable year, the modified charitable contribution 
                deduction shall be zero.
    ``(c) High-Income Taxpayer.--For purposes of this section--
            ``(1) In general.--The term `high-income taxpayer' means, 
        with respect to any taxable year, any taxpayer (other than a 
        corporation) with an adjusted gross income for such taxable 
        year in excess of $1,000,000 (50 percent of such amount in the 
        case of a married individual who files a separate return).
            ``(2) Inflation adjustment.--
                    ``(A) In general.--In the case of a taxable year 
                beginning after 2013, the $1,000,000 amount under 
                paragraph (1) shall be increased by an amount equal 
                to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2012' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--If any amount as adjusted under 
                subparagraph (A) is not a multiple of $10,000, such 
                amount shall be rounded to the next lowest multiple of 
                $10,000.
    ``(d) Payroll Tax.--For purposes of this section, the payroll tax 
for any taxable year is an amount equal to the excess of--
            ``(1) the taxes imposed on the taxpayer under sections 
        1401, 1411, 3101, 3201, and 3211(a) (to the extent such tax is 
        attributable to the rate of tax in effect under section 3101) 
        with respect to such taxable year or wages or compensation 
        received during such taxable year, over
            ``(2) the deduction allowable under section 164(f) for such 
        taxable year.
    ``(e) Special Rule for Estates and Trusts.--For purposes of this 
section, in the case of an estate or trust, adjusted gross income shall 
be computed in the manner described in section 67(e).
    ``(f) Not Treated as Tax Imposed by This Chapter for Certain 
Purposes.--The tax imposed under this section shall not be treated as 
tax imposed by this chapter for purposes of determining the amount of 
any credit under this chapter (other than the credit allowed under 
section 27(a)) or for purposes of section 55.''.
    (b) Clerical Amendment.--The table of parts for subchapter A of 
chapter 1 is amended by adding at the end the following new item:

        ``Part VIII--Fair Share Tax on High-Income Taxpayers''.

    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2013.

SEC. 303. DENIAL OF DEDUCTION FOR OUTSOURCING EXPENSES.

    (a) In General.--Part IX of subchapter B of chapter 1 is amended by 
adding at the end the following new section:

``SEC. 280I. OUTSOURCING EXPENSES.

    ``(a) In General.--No deduction otherwise allowable under this 
chapter shall be allowed for any specified outsourcing expense.
    ``(b) Specified Outsourcing Expense.--For purposes of this 
section--
            ``(1) In general.--The term `specified outsourcing expense' 
        means--
                    ``(A) any eligible expense paid or incurred by the 
                taxpayer in connection with the elimination of any 
                business unit of the taxpayer (or of any member of any 
                expanded affiliated group in which the taxpayer is also 
                a member) located within the United States, and
                    ``(B) any eligible expense paid or incurred by the 
                taxpayer in connection with the establishment of any 
                business unit of the taxpayer (or of any member of any 
                expanded affiliated group in which the taxpayer is also 
                a member) located outside the United States,
        if such establishment constitutes the relocation of the 
        business unit so eliminated. For purposes of the preceding 
        sentence, a relocation shall not be treated as failing to occur 
        merely because such elimination occurs in a different taxable 
        year than such establishment.
            ``(2) Eligible expenses.--The term `eligible expenses' 
        means--
                    ``(A) any amount for which a deduction is allowed 
                to the taxpayer under section 162, and
                    ``(B) permit and license fees, lease brokerage 
                fees, equipment installation costs, and, to the extent 
                provided by the Secretary, other similar expenses.
        Such term does not include any compensation which is paid or 
        incurred in connection with severance from employment and, to 
        the extent provided by the Secretary, any similar amount.
            ``(3) Business unit.--The term `business unit' means--
                    ``(A) any trade or business, and
                    ``(B) any line of business, or functional unit, 
                which is part of any trade or business.
            ``(4) Expanded affiliated group.--The term `expanded 
        affiliated group' means an affiliated group as defined in 
        section 1504(a), determined without regard to section 
        1504(b)(3) and by substituting `more than 50 percent' for `at 
        least 80 percent' each place it appears in section 1504(a). A 
        partnership or any other entity (other than a corporation) 
        shall be treated as a member of an expanded affiliated group if 
        such entity is controlled (within the meaning of section 
        954(d)(3)) by members of such group (including any entity 
        treated as a member of such group by reason of this paragraph).
            ``(5) Operating expenses not taken into account.--Any 
        amount paid or incurred in connection with the on-going 
        operation of a business unit shall not be treated as an amount 
        paid or incurred in connection with the establishment or 
        elimination of such business unit.
    ``(c) Special Rules.--
            ``(1) Application to deductions for depreciation and 
        amortization.--In the case of any portion of a specified 
        outsourcing expense which is not deductible in the taxable year 
        in which paid or incurred, such portion shall neither be 
        chargeable to capital account nor amortizable.
            ``(2) Possessions treated as part of the united states.--
        For purposes of this section, the term `United States' shall be 
        treated as including each possession of the United States 
        (including the Commonwealth of Puerto Rico and the Commonwealth 
        of the Northern Mariana Islands).
    ``(d) Regulations.--The Secretary shall prescribe such regulations 
or other guidance as may be necessary or appropriate to carry out the 
purposes of this section, including regulations which provide (or 
create a rebuttable presumption) that certain establishments of 
business units outside the United States will be treated as relocations 
(based on timing or such other factors as the Secretary may provide) of 
business units eliminated within the United States.''.
    (b) Limitation on Subpart F Income of Controlled Foreign 
Corporations Determined Without Regard to Specified Outsourcing 
Expenses.--Subsection (c) of section 952 is amended by adding at the 
end the following new paragraph:
            ``(4) Earnings and profits determined without regard to 
        specified outsourcing expenses.--For purposes of this 
        subsection, earnings and profits of any controlled foreign 
        corporation shall be determined without regard to any specified 
        outsourcing expense (as defined in section 280I(b)).''.
    (c) Clerical Amendment.--The table of sections for part IX of 
subchapter B of chapter 1 is amended by adding at the end the following 
new item:

``Sec. 280I. Outsourcing expenses.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act.

SEC. 304. MODIFICATIONS TO THE TAX ON PETROLEUM.

    (a) Definition of Crude Oil.--Paragraph (1) of section 4612(a) is 
amended to read as follows:
            ``(1) Crude oil.--The term `crude oil' includes crude oil 
        condensates, natural gasoline, any bitumen or bituminous 
        mixture, and any oil derived from a bitumen or bituminous 
        mixture.''.
    (b) Removing Restrictions Relating to Oil Wells and Extraction 
Methods.--Paragraph (2) of section 4612(a) is amended by striking 
``from a well located''.
    (c) Clerical Amendment.--Subclause (I) of section 4612(e)(2)(B)(ii) 
is amended by striking ``tranferred'' and inserting ``transferred''.
    (d) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply to oil and petroleum products received or entered during 
calendar quarters beginning more than 60 days after the date of the 
enactment of this Act.
                                                        Calendar No. 18

113th CONGRESS

  1st Session

                                 S. 388

_______________________________________________________________________

                                 A BILL

 To appropriately limit sequestration, to eliminate tax loopholes, and 
                          for other purposes.

_______________________________________________________________________

                           February 26, 2013

Read twice and placed on the calendar pursuant to the order of February 
                                14, 2013
```