175 
‘‘SEC. 59C. SURCHARGE ON HIGH INCOME INDIVIDUALS. 
‘‘(a) GENERAL RULE.—In the case of a taxpayer 
other than a corporation, there is hereby imposed (in addi-
tion to any other tax imposed by this subtitle) a tax equal 
to 5.4 percent of so much of the modified adjusted gross 
income of the taxpayer as exceeds $1,000,000. 
‘‘(b) TAXPAYERS NOT MAKING A JOINT RETURN.— 
In the case of any taxpayer other than a taxpayer making 
a joint return under section 6013 or a surviving spouse 
(as defined in section 2(a)), subsection (a) shall be applied 
by substituting ‘$500,000’ for ‘$1,000,000’. 
‘‘(c) MODIFIED ADJUSTED GROSS INCOME.—For 
purposes of this section, the term ‘modified adjusted gross 
income’ means adjusted gross income reduced by any de-
duction (not taken into account in determining adjusted 
gross income) allowed for investment interest (as defined 
in section 163(d)). In the case of an estate or trust, ad-
justed gross income shall be determined as provided in sec-
tion 67(e). 
‘‘(d) SPECIAL RULES.— 
‘‘(1) NONRESIDENT ALIEN.—In the case of a 
nonresident alien individual, only amounts taken 
into account in connection with the tax imposed 
under section 871(b) shall be taken into account 
under this section. 
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176 
‘‘(2) 
CITIZENS
AND
RESIDENTS
LIVING 
ABROAD.—The dollar amount in effect under sub-
section (a) (after the application of subsection (b)) 
shall be decreased by the excess of— 
‘‘(A) the amounts excluded from the tax-
payer’s gross income under section 911, over 
‘‘(B) the amounts of any deductions or ex-
clusions disallowed under section 911(d)(6) 
with respect to the amounts described in sub-
paragraph (A). 
‘‘(3) CHARITABLE
TRUSTS.—Subsection (a) 
shall not apply to a trust all the unexpired interests 
in which are devoted to one or more of the purposes 
described in section 170(c)(2)(B). 
‘‘(4) NOT TREATED AS TAX IMPOSED BY THIS 
CHAPTER
FOR
CERTAIN
PURPOSES.—The tax im-
posed 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 or for 
purposes of section 55.’’. 
(b) CLERICAL AMENDMENT.—The table of subparts 
for part VIII of subchapter A of chapter 1, as added by 
this title, is amended by inserting after the item relating 
to subpart A the following new item: 
‘‘SUBPART B. SURCHARGE ON HIGH INCOME INDIVIDUALS’’. 
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177 
(c) SECTION 15 NOT TO APPLY.—The amendment 
made by subsection (a) shall not be treated as a change 
in a rate of tax for purposes of section 15 of the Internal 
Revenue Code of 1986. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2012. 
Subtitle C—Other Financing 
Provisions 
SEC. 821. TAX ON SECURITIES TRANSACTIONS. 
(a) IN GENERAL.—Chapter 36 is amended by insert-
ing after subchapter B the following new subchapter: 
‘‘Subchapter C—Tax on Securities 
Transactions 
‘‘Sec. 4475. Tax on securities transactions. 
‘‘SEC. 4475. TAX ON SECURITIES TRANSACTIONS. 
‘‘(a) IMPOSITION OF TAX.— 
‘‘(1) STOCKS.—There is hereby imposed a tax 
on each covered transaction in a stock contract of 
0.25 percent of the value of the instruments involved 
in such transaction. 
‘‘(2) FUTURES.—There is hereby imposed a tax 
on each covered transaction in a futures contract of 
0.02 percent of the value of the instruments involved 
in such transaction. 
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178 
‘‘(3) SWAPS.—There is hereby imposed a tax on 
each covered transaction in a swaps contract of 0.02 
percent of the value of the instruments involved in 
such transaction. 
‘‘(4) CREDIT DEFAULT SWAPS.—There is here-
by imposed a tax on each covered transaction in a 
credit default swaps contract of 0.02 percent of the 
value of the instruments involved in such trans-
action. 
‘‘(5) OPTIONS.—There is hereby imposed a tax 
on each covered transaction in an options contract 
with respect to a transaction described in paragraph 
(1), (2), (3), or (4) of— 
‘‘(A) the rate imposed with respect to such 
underlying transaction under paragraph (1), 
(2), (3), or (4) (as the case may be), multiplied 
by 
‘‘(B) the premium paid on such option. 
‘‘(b) EXCEPTION
FOR
RETIREMENT
ACCOUNTS, 
ETC.—No tax shall be imposed under subsection (a) with 
respect to any stock contract, futures contract, swaps con-
tract, credit default swap, or options contract which is 
held in any plan, account, or arrangement described in 
section 220, 223, 401(a), 403(a), 403(b), 408, 408A, 529, 
or 530. 
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179 
‘‘(c) EXCEPTION
FOR
INTERESTS
IN
MUTUAL 
FUNDS.—No tax shall be imposed under subsection (a) 
with respect to the purchase or sale of any interest in a 
regulated investment company (as defined in section 851) 
or of any derivative of such an interest. 
‘‘(d) BY WHOM PAID.— 
‘‘(1) IN GENERAL.—The tax imposed by this 
section shall be paid by— 
‘‘(A) in the case of a transaction which oc-
curs on a trading facility located in the United 
States, such trading facility, or 
‘‘(B) in any other case, the purchaser with 
respect to the transaction. 
‘‘(2) WITHHOLDING
IF
BUYER
IS
NOT
A 
UNITED
STATES
PERSON.—See section 1447 for 
withholding by seller if buyer is a foreign person. 
‘‘(e) COVERED TRANSACTION.—The term ‘covered 
transaction’ means any purchase or sale if— 
‘‘(1) such purchase or sale occurs on a trading 
facility located in the United States, or 
‘‘(2) the purchaser or seller is a United States 
person. 
‘‘(f) ADMINISTRATION.—The Secretary shall carry 
out this section in consultation with the Securities and Ex-
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180 
change Commission and the Commodity Futures Trading 
Commission.’’. 
(b) CREDIT FOR FIRST $100,000 OF STOCK TRANS-
ACTIONS PER YEAR.—Subpart C of part IV of subchapter 
A of chapter 1 is amended by inserting after section 36A 
the following new section: 
‘‘SEC. 36B. CREDIT FOR SECURITIES TRANSACTION TAXES. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of any 
purchaser with respect to a covered transaction, there 
shall be allowed as a credit against the tax imposed by 
this subtitle for the taxable year an amount equal to the 
lesser of— 
‘‘(1) the aggregate amount of tax imposed 
under section 4475 on covered transactions during 
the taxable year with respect to which the taxpayer 
is the purchaser, or 
‘‘(2) $250 ($500 in the case of a joint return). 
‘‘(b) AGGREGATION RULE.—For purposes of this sec-
tion, all persons treated as a single employer under sub-
section (a) or (b) of section 52, or subsection (m) or (o) 
of section 414, shall be treated as one taxpayer. 
‘‘(c) DEFINITIONS.—For purposes of this section, 
any term used in this section which is also used in section 
4475 shall have the same meaning as when used in section 
4475.’’. 
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181 
(c) WITHHOLDING.—Subchapter A of chapter 3 is 
amended by adding at the end the following new section: 
‘‘SEC. 1447. WITHHOLDING ON SECURITIES TRANSACTIONS. 
‘‘(a) IN GENERAL.—In the case of any outbound se-
curities transaction, the transferor shall deduct and with-
hold a tax equal to the tax imposed under section 4475 
with respect to such transaction. 
‘‘(b) OUTBOUND SECURITIES TRANSACTION.—For 
purposes of this section, the term ‘outbound securities 
transaction’ means any covered transaction to which sec-
tion 4475(a) applies if— 
‘‘(1) such transaction does not occur on a trad-
ing facility located in the United States, and 
‘‘(2) the purchaser with respect to such trans-
action is not a United States person.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 6211(b)(4)(A) is amended by insert-
ing ‘‘36B,’’ after ‘‘36A,’’. 
(2) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘36B,’’ after 
‘‘36A,’’. 
(3) The table of subchapters for chapter 36 is 
amended by inserting after the item relating to sub-
chapter B the following new item: 
‘‘Subchapter C. Tax on securities transactions’’. 
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182 
(4) The table of sections for subchapter A of 
chapter 3 is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 1447. Withholding on securities transactions.’’. 
(5) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 is amended by in-
serting after the item relating to section 36A the fol-
lowing new item: 
‘‘Sec. 36B. Credit for securities transaction taxes.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to transactions occurring more 
than 180 days after the date of the enactment of this Act. 
TITLE IX—CONFORMING AMEND-
MENTS TO THE EMPLOYEE 
RETIREMENT INCOME SECU-
RITY ACT OF 1974 
SEC. 901. ERISA INAPPLICABLE TO HEALTH COVERAGE AR-
RANGEMENTS UNDER STATE HEALTH SECU-
RITY PROGRAMS. 
Section 4 of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1003) is amended— 
(1) in subsection (a), by striking ‘‘(b) or (c)’’ 
and inserting ‘‘(b), (c), or (d)’’; and 
(2) by adding at the end the following new sub-
section: 
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183 
‘‘(d) The provisions of this title shall not apply to 
any arrangement forming a part of a State health security 
program established pursuant to section 101(b) of the 
American Health Security Act of 2011.’’. 
SEC. 902. EXEMPTION OF STATE HEALTH SECURITY PRO-
GRAMS FROM ERISA PREEMPTION. 
Section 514(b) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1144(b)) (as amended 
by sections 904(b)(3)(B) and 1002(b) of this Act) is 
amended by adding at the end the following new para-
graph: 
‘‘(10) Subsection (a) of this section shall not apply 
to State health security programs established pursuant to 
section 101(b) of the American Health Security Act of 
2011.’’. 
SEC. 903. PROHIBITION OF EMPLOYEE BENEFITS DUPLICA-
TIVE OF BENEFITS UNDER STATE HEALTH 
SECURITY 
PROGRAMS; 
COORDINATION 
IN 
CASE OF WORKERS’ COMPENSATION. 
(a) IN GENERAL.—Part 5 of subtitle B of title I of 
the Employee Retirement Income Security Act of 1974 is 
amended by adding at the end the following new section: 
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184 
‘‘PROHIBITION OF EMPLOYEE BENEFITS DUPLICATIVE OF 
STATE HEALTH SECURITY PROGRAM BENEFITS; CO-
ORDINATION IN CASE OF WORKERS’ COMPENSATION 
‘‘SEC. 522. (a) Subject to subsection (b), no employee 
benefit plan may provide benefits which duplicate payment 
for any items or services for which payment may be made 
under a State health security program established pursu-
ant to section 101(b) of the American Health Security Act 
of 2011. 
‘‘(b)(1) Each workers compensation carrier that is 
liable for payment for workers compensation services fur-
nished in a State shall reimburse the State health security 
plan for the State in which the services are furnished for 
the cost of such services. 
‘‘(2) In this subsection: 
‘‘(A) The term ‘workers compensation carrier’ 
means an insurance company that underwrites work-
ers compensation medical benefits with respect to 1 
or more employers and includes an employer or fund 
that is financially at risk for the provision of work-
ers compensation medical benefits. 
‘‘(B) The term ‘workers compensation medical 
benefits’ means, with respect to an enrollee who is 
an employee subject to the workers compensation 
laws of a State, the comprehensive medical benefits 
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185 
for work-related injuries and illnesses provided for 
under such laws with respect to such an employee. 
‘‘(C) The term ‘workers compensation services’ 
means items and services included in workers com-
pensation medical benefits and includes items and 
services (including rehabilitation services and long- 
term-care services) commonly used for treatment of 
work-related injuries and illnesses.’’. 
(b) CONFORMING AMENDMENT.—Section 4(b) of 
such Act (29 U.S.C. 1003(b)) is amended by adding at 
the end the following: ‘‘Paragraph (3) shall apply subject 
to section 522(b) (relating to reimbursement of State 
health security plans by workers compensation carriers).’’. 
(c) CLERICAL AMENDMENT.—The table of contents 
in section 1 of such Act is amended by inserting after the 
item relating to section 521 the following new items: 
‘‘Sec. 522. Prohibition of employee benefits duplicative of state health security 
program benefits; coordination in case of workers’ compensa-
tion.’’. 
SEC. 904. REPEAL OF CONTINUATION COVERAGE REQUIRE-
MENTS UNDER ERISA AND CERTAIN OTHER 
REQUIREMENTS 
RELATING 
TO 
GROUP 
HEALTH PLANS. 
(a) IN GENERAL.—Part 6 of subtitle B of title I of 
the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1161 et seq.) is repealed. 
(b) CONFORMING AMENDMENTS.— 
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186 
(1) Section 502(a) of such Act (29 U.S.C. 
1132(a)) is amended— 
(A) by striking paragraph (7); and 
(B) by redesignating paragraphs (8), (9), 
and (10) as paragraphs (7), (8), and (9), re-
spectively. 
(2) Section 502(c)(1) of such Act (29 U.S.C. 
1132(c)(1)) is amended by striking ‘‘paragraph (1) 
or (4) of section 606,’’. 
(3) Section 514(b) of such Act (29 U.S.C. 
1144(b)) is amended— 
(A) in paragraph (7), by striking ‘‘section 
206(d)(3)(B)(i)),’’ and all that follows and in-
serting ‘‘section 206(d)(3)(B)(i)).’’; and 
(B) by striking paragraph (8). 
(4) The table of contents in section 1 of the 
Employee Retirement Income Security Act of 1974 
is amended by striking the items relating to part 6 
of subtitle B of title I of such Act. 
SEC. 905. EFFECTIVE DATE OF TITLE. 
The amendments made by this title shall take effect 
January 1, 2014. 
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187 
TITLE X—ADDITIONAL 
CONFORMING AMENDMENTS 
SEC. 1001. REPEAL OF CERTAIN PROVISIONS IN INTERNAL 
REVENUE CODE OF 1986. 
The provisions of titles III and IV of the Health In-
surance Portability and Accountability Act of 1996, other 
than subtitles D and H of title III and section 342, are 
repealed and the provisions of law that were amended or 
repealed by such provisions are hereby restored as if such 
provisions had not been enacted. 
SEC. 1002. REPEAL OF CERTAIN PROVISIONS IN THE EM-
PLOYEE 
RETIREMENT 
INCOME 
SECURITY 
ACT OF 1974. 
(a) IN GENERAL.—Part 7 of subtitle B of title I of 
the Employee Retirement Income Security Act of 1974 is 
repealed and the items relating to such part in the table 
of contents in section 1 of such Act are repealed. 
(b) CONFORMING AMENDMENT.—Section 514(b) of 
such Act (29 U.S.C. 1144(b)) is amended by striking 
paragraph (9). 
SEC. 1003. REPEAL OF CERTAIN PROVISIONS IN THE PUB-
LIC HEALTH SERVICE ACT AND RELATED 
PROVISIONS. 
(a) IN GENERAL.—Titles XXII and XXVII of the 
Public Health Service Act are repealed. 
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188 
(b) ADDITIONAL AMENDMENTS.— 
(1) Section 1301(b) of such Act (42 U.S.C. 
300e(b)) is amended by striking paragraph (6). 
(2) Sections 104 and 191 of the Health Insur-
ance Portability and Accountability Act of 1996 are 
repealed. 
SEC. 1004. EFFECTIVE DATE OF TITLE. 
The amendments made by this title shall take effect 
January 1, 2015. 
Æ 
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