II 
Calendar No. 502 
112TH CONGRESS 
2D SESSION 
H. R. 8 
IN THE SENATE OF THE UNITED STATES 
SEPTEMBER 10, 2012 
Received; read the first time 
SEPTEMBER 11, 2012 
Read the second time and placed on the calendar 
AN ACT 
To extend certain tax relief provisions enacted in 2001 and 
2003, and to provide for expedited consideration of a 
bill providing for comprehensive tax reform, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
TITLE I—JOB PROTECTION AND 
RECESSION PREVENTION ACT 
SEC. 101. SHORT TITLE. 
This title may be cited as the ‘‘Job Protection and 
Recession Prevention Act of 2012’’. 
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SEC. 102. EXTENSION OF 2001 AND 2003 TAX RELIEF. 
(a) EXTENSION OF 2001 TAX RELIEF.— 
(1) IN GENERAL.—Section 901 of the Economic 
Growth and Tax Relief Reconciliation Act of 2001 is 
amended by striking ‘‘December 31, 2012’’ both 
places it appears and inserting ‘‘December 31, 
2013’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this section shall take effect as if included in the 
enactment of the Economic Growth and Tax Relief 
Reconciliation Act of 2001. 
(b) EXTENSION OF 2003 TAX RELIEF.— 
(1) IN GENERAL.—Section 303 of the Jobs and 
Growth Tax Relief Reconciliation Act of 2003 is 
amended by striking ‘‘December 31, 2012’’ and in-
serting ‘‘December 31, 2013’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this section shall take effect as if included in the 
enactment of the Jobs and Growth Tax Relief Rec-
onciliation Act of 2003. 
SEC. 103. EXTENSION OF INCREASED SMALL BUSINESS EX-
PENSING. 
(a) DOLLAR LIMITATION.—Section 179(b)(1) of the 
Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (C), by redesignating subparagraph (D) as 
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subparagraph (E), and by inserting after subpara-
graph (C) the following new subparagraph: 
‘‘(D) $100,000 in the case of taxable years 
beginning in 2013, and’’, and 
(2) by striking ‘‘2012’’ in subparagraph (E) (as 
redesignated by paragraph (1)) and inserting 
‘‘2013’’. 
(b) REDUCTION IN LIMITATION.—Section 179(b)(2) 
of such Code is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (C), by redesignating subparagraph (D) as 
subparagraph (E), and by inserting after subpara-
graph (C) the following new subparagraph: 
‘‘(D) $400,000 in the case of taxable years 
beginning in 2013, and’’, and 
(2) by striking ‘‘2012’’ in subparagraph (E) (as 
redesignated by paragraph (1)) and inserting 
‘‘2013’’. 
(c) APPLICATION
OF INFLATION ADJUSTMENT.— 
Section 179(b)(6)(A) of such Code is amended— 
(1) by striking ‘‘calendar year 2012, the 
$125,000 and $500,000 amounts in paragraphs 
(1)(C) and (2)(C)’’ in the matter preceding clause 
(i) and inserting ‘‘calendar year 2013, the $100,000 
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and $400,000 amounts in paragraphs (1)(D) and 
(2)(D)’’, and 
(2) by striking ‘‘calendar year 2006’’ in clause 
(ii) and inserting ‘‘calendar year 2002’’. 
(d) 
COMPUTER
SOFTWARE.—Section 
179(d)(1)(A)(ii) of such Code is amended by striking 
‘‘2013’’ and inserting ‘‘2014’’. 
(e) SPECIAL RULE
FOR REVOCATION
OF ELEC-
TIONS.—Section 179(c)(2) of such Code is amended by 
striking ‘‘2013’’ and inserting ‘‘2014’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2012. 
SEC. 104. EXTENSION OF ALTERNATIVE MINIMUM TAX RE-
LIEF FOR INDIVIDUALS. 
(a) EXTENSION OF INCREASED ALTERNATIVE MIN-
IMUM TAX EXEMPTION AMOUNT.—Section 55(d)(1) of 
the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘$72,450’’ and all that follows 
through ‘‘2011’’ in subparagraph (A) and inserting 
‘‘$78,750 in the case of taxable years beginning in 
2012 and $79,850 in the case of taxable years be-
ginning in 2013’’, and 
(2) by striking ‘‘$47,450’’ and all that follows 
through ‘‘2011’’ in subparagraph (B) and inserting 
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‘‘$50,600 in the case of taxable years beginning in 
2012 and $51,150 in the case of taxable years be-
ginning in 2013’’. 
(b) EXTENSION OF ALTERNATIVE MINIMUM TAX RE-
LIEF FOR NONREFUNDABLE PERSONAL CREDITS.—Sec-
tion 26(a)(2) of such Code is amended— 
(1) by striking ‘‘during 2000, 2001, 2002, 
2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 
or 2011’’ and inserting ‘‘after 1999 and before 
2014’’, and 
(2) by striking ‘‘2011’’ in the heading thereof 
and inserting ‘‘2013’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
SEC. 105. TREATMENT FOR PAYGO PURPOSES. 
The budgetary effects of this Act shall not be entered 
on either PAYGO scorecard maintained pursuant to sec-
tion 4(d) of the Statutory Pay-As-You-Go Act of 2010. 
TITLE II—PATHWAY TO JOB CRE-
ATION THROUGH A SIMPLER, 
FAIRER TAX CODE ACT 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Pathway to Job Cre-
ation through a Simpler, Fairer Tax Code Act of 2012’’. 
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SEC. 202. FINDINGS AND PURPOSES. 
(a) FINDINGS.—Congress finds that the following 
problems exist with the Internal Revenue Code of 1986 
(in this section referred to as the ‘‘tax code’’): 
(1) The tax code is unfair, containing hundreds 
of provisions that only benefit certain special inter-
ests, resulting in a system of winners and losers. 
(2) The tax code violates the fundamental prin-
ciple of equal justice by subjecting families in similar 
circumstances to significantly different tax bills. 
(3)(A) Many tax preferences, sometimes re-
ferred to as ‘‘tax expenditures,’’ are similar to gov-
ernment spending—instead of markets directing eco-
nomic resources to their most efficient uses, the 
Government directs resources to other uses, creating 
a drag on economic growth and job creation. 
(B) The exclusions, deductions, credits, and 
special rules that make up such tax expenditures 
amount to over $1 trillion per year, nearly matching 
the total amount of annual revenue that is generated 
from the income tax itself. 
(C) In some cases, tax subsidies can literally 
take the form of spending through the tax code, re-
distributing taxes paid by some Americans to indi-
viduals and businesses who do not pay any income 
taxes at all. 
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(4) The failure to adopt a permanent tax code 
with stable statutory tax policy has created greater 
economic uncertainty. Tax rates have been scheduled 
to increase sharply in 3 of the last 5 years, requiring 
the enactment of repeated temporary extensions. Ad-
ditionally, approximately 70 other, more targeted tax 
provisions expired in 2011 or are currently sched-
uled to expire by the end of 2012. 
(5) Since 2001, there have been nearly 4,500 
changes made to the tax code, averaging more than 
one each day over the past decade. 
(6) The tax code’s complexity leads nearly nine 
out of ten families either to hire tax preparers (60 
percent) or purchase software (29 percent) to file 
their taxes, while 71 percent of unincorporated busi-
nesses are forced to pay someone else to prepare 
their taxes. 
(7) The cost of complying with the tax code is 
too burdensome, forcing individuals, families, and 
employers to spend over six billion hours and over 
$160 billion per year trying to comply with the law 
and pay the actual tax owed. 
(8) Compliance with the current tax code is a 
financial hardship for employers that falls dispropor-
tionately on small businesses, which spend an aver-
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age of $74 per hour on tax-related compliance, mak-
ing it the most expensive paperwork burden they en-
counter. 
(9) Small businesses have been responsible for 
two-thirds of the jobs created in the United States 
over the past 15 years, and approximately half of 
small-business profits are taxed at the current top 2 
individual rates. 
(10) The historic range for tax revenues col-
lected by the Federal government has averaged 18 
to 19 percent of Gross Domestic Product (GDP), 
but will rise to 21.2 percent of GDP under current 
law—a level never reached, let alone sustained, in 
the Nation’s history. 
(11) The current tax code is highly punitive, 
with a top Federal individual income tax rate of 35 
percent (which is set to climb to over 40 percent in 
2013 when taking into account certain hidden 
rates), meaning some Americans could face a com-
bined local, State and Federal tax rate of 50 per-
cent. 
(12) The tax code contains harmful provisions, 
such as the Alternative Minimum Tax (AMT), which 
was initially designed to affect only the very highest- 
income taxpayers but now threatens more than 30 
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million middle-class households because of a flawed 
design. 
(13) As of April 1, 2012, the United States 
achieved the dubious distinction of having the high-
est corporate tax rate (39.2 percent for Federal and 
State combined) in the developed world. 
(14) The United States corporate tax rate is 
more than 50 percent higher than the average rate 
of member states of the Organization for Economic 
Cooperation and Development (OECD)—a factor 
that discourages employers and investors from locat-
ing jobs and investments in the United States. 
(15) The United States has become an outlier 
in that it still uses a ‘‘worldwide’’ system of tax-
ation—one that has not been substantially reformed 
in 50 years, when the United States accounted for 
nearly half of global economic output and had no se-
rious competitors around the world. 
(16) The combination of the highest corporate 
tax rate with an antiquated ‘‘worldwide’’ system sub-
jects American companies to double taxation when 
they attempt to compete with foreign companies in 
overseas markets and then reinvest their earnings in 
the United States. 
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(17) The Nation’s outdated tax code has con-
tributed to the fact that the world’s largest compa-
nies are more likely to be headquartered overseas 
today than at any point in the last 50 years: In 
1960, 17 of the world’s 20 largest companies were 
based in the United States; by 2010, that number 
sank to a mere six out of 20. 
(18) The United States has one of the highest 
levels of taxation on capital—taxing it once at the 
corporate level and then again at the individual 
level—with integrated tax rates on certain invest-
ment income already reaching roughly 50 percent 
(and scheduled to reach nearly 70 percent in 2013). 
(19) The United States’ overall taxation of cap-
ital is higher than all but four of the 38 countries 
that make up the OECD and the BRIC (Brazil, 
Russia, India and China). 
(b) PURPOSES.—It is the purpose of this Act to pro-
vide for enactment of comprehensive tax reform in 2013 
that— 
(1) protects taxpayers by creating a fairer, sim-
pler, flatter tax code for individuals and families 
by— 
(A) lowering marginal tax rates and broad-
ening the tax base; 
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(B) eliminating special interest loopholes; 
(C) reducing complexity in the tax code, 
making tax compliance easier and less costly; 
(D) repealing the Alternative Minimum 
Tax; 
(E) maintaining modern levels of progres-
sivity so as to not overburden any one group or 
further erode the tax base; 
(F) making it easier for Americans to save; 
and 
(G) reducing the tax burdens imposed on 
married couples and families; 
(2) is comprehensive (addressing both indi-
vidual and corporate rates), so as to have the max-
imum economic impact by benefitting employers and 
their employees regardless of how a business is 
structured; 
(3) results in tax revenue consistent with his-
torical norms; 
(4) spurs greater investment, innovation and 
job creation, and therefore increases economic activ-
ity and the size of the economy on a dynamic basis 
as compared to the current tax code; and 
(5) makes American workers and businesses 
more competitive by— 
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(A) creating a stable, predictable tax code 
under which families and employers are best 
able to plan for the future; 
(B) keeping taxes on small businesses low; 
(C) reducing America’s corporate tax rate, 
which is currently the highest in the industri-
alized world; 
(D) maintaining a level of parity between 
individual and corporate rates to reduce eco-
nomic distortions; 
(E) promoting innovation in the United 
States; 
(F) transitioning to a globally competitive 
territorial tax system; 
(G) minimizing the double taxation of in-
vestment and capital; and 
(H) reducing the impact of taxes on busi-
ness decision-making to allow such decisions to 
be driven by their economic potential. 
SEC. 203. EXPEDITED CONSIDERATION OF A MEASURE PRO-
VIDING FOR COMPREHENSIVE TAX REFORM. 
(a) DEFINITION.—For purposes of this section, the 
term ‘‘tax reform bill’’ means a bill of the 113th Con-
gress— 
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(1) introduced in the House of Representatives 
by the chair of the Committee on Ways and Means 
not later than April 30, 2013, or the first legislative 
day thereafter if the House is not in session on that 
day, the title of which is as follows: ‘‘A bill to pro-
vide for comprehensive tax reform.’’; and 
(2) which is the subject of a certification under 
subsection (b). 
(b) CERTIFICATION.—The chair of the Joint Com-
mittee on Taxation shall notify the House and Senate in 
writing whenever the chair of the Joint Committee deter-
mines that an introduced bill described in subsection 
(a)(1) contains at least each of the following proposals: 
(1) a consolidation of the current 6 individual 
income tax brackets into not more than two brackets 
of 10 and not more than 25 percent; 
(2) a reduction in the corporate tax rate to not 
greater than 25 percent; 
(3) a repeal of the Alternative Minimum Tax; 
(4) a broadening of the tax base to maintain 
revenue between 18 and 19 percent of the economy; 
and 
(5) a change from a ‘‘worldwide’’ to a ‘‘terri-
torial’’ system of taxation. 
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(c) EXPEDITED CONSIDERATION IN THE HOUSE OF 
REPRESENTATIVES.— 
(1) Any committee of the House of Representa-
tives to which the tax reform bill is referred shall re-
port it to the House not later than 20 calendar days 
after the date of its introduction. If a committee 
fails to report the tax reform bill within that period, 
such committee shall be automatically discharged 
from further consideration of the bill. 
(2) If the House has not otherwise proceeded to 
the consideration of the tax reform bill upon the ex-
piration of 15 legislative days after the bill has been 
placed on the Union Calendar, it shall be in order 
for the Majority Leader or a designee (or, after the 
expiration of an additional 2 legislative days, any 
Member), to offer one motion that the House resolve 
into the Committee of the Whole House on the state 
of the Union for the consideration of the tax reform 
bill. The previous question shall be considered as or-
dered on the motion to its adoption without inter-
vening motion except 20 minutes of debate equally 
divided and controlled by the proponent and an op-
ponent. If such a motion is adopted, consideration 
shall proceed in accordance with paragraph (3). A 
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motion to reconsider the vote by which the motion 
is disposed of shall not be in order. 
(3) The first reading of the bill shall be dis-
pensed with. General debate shall be confined to the 
bill and shall not exceed 4 hours, equally divided and 
controlled by the chair and ranking minority mem-
ber of the Committee on Ways and Means. At the 
conclusion of general debate, the bill shall be read 
for amendment under the five-minute rule. Any com-
mittee amendment shall be considered as read. At 
the conclusion of consideration of the bill for amend-
ment the Committee shall rise and report the bill to 
the House with such amendments as may have been 
adopted. The previous question shall be considered 
as ordered on the bill and amendments thereto to 
final passage without intervening motion except one 
motion to recommit with or without instructions. A 
motion to reconsider the vote on passage of the bill 
shall not be in order. 
(d) EXPEDITED CONSIDERATION IN THE SENATE.— 
(1) COMMITTEE
CONSIDERATION.—A tax re-
form bill, as defined in subsection (a), received in 
the Senate shall be referred to the Committee on Fi-
nance. The Committee shall report the bill not later 
than 15 calendar days after receipt of the bill in the 
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Senate. If the Committee fails to report the bill 
within that period, that committee shall be dis-
charged from consideration of the bill, and the bill 
shall be placed on the calendar. 
(2) MOTION
TO
PROCEED.—Notwithstanding 
rule XXII of the Standing Rules of the Senate, it is 
in order, not later than 2 days of session after the 
date on which the tax reform bill is reported or dis-
charged from committee, for the majority leader of 
the Senate or the majority leader’s designee to move 
to proceed to the consideration of the tax reform 
bill. It shall also be in order for any Member of the 
Senate to move to proceed to the consideration of 
the tax reform bill at any time after the conclusion 
of such 2-day period. A motion to proceed is in order 
even though a previous motion to the same effect 
has been disagreed to. All points of order against 
the motion to proceed to the tax reform bill are 
waived. The motion to proceed is not debatable. The 
motion is not subject to a motion to postpone. 
(3) CONSIDERATION.—No motion to recommit 
shall be in order and debate on any motion or appeal 
shall be limited to one hour, to be divided in the 
usual form. 
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(4) AMENDMENTS.—All amendments must be 
relevant to the bill and debate on any amendment 
shall be limited to 2 hours to be equally divided in 
the usual form between the opponents and pro-
ponents of the amendment. Debate on any amend-
ment to an amendment, debatable motion, or appeal 
shall be limited to 1 hour to be equally divided in 
the usual form between the opponents and pro-
ponents of the amendment. 
(5) VOTE ON PASSAGE.—If the Senate has pro-
ceeded to the bill, and following the conclusion of all 
debate, the Senate shall proceed to a vote on pas-
sage of the bill as amended, if amended. 
(e) CONFERENCE IN THE HOUSE.—If the House re-
ceives a message that the Senate has passed the tax re-
form bill with an amendment or amendments, it shall be 
in order for the chair of the Committee on Ways and 
Means or a designee, without intervention of any point of 
order, to offer any motion specified in clause 1 of rule 
XXII. 
(f) CONFERENCE IN THE SENATE.—If the Senate re-
ceives from the House a message to accompany the tax 
reform bill, as defined in subsection (a), then no later than 
two session days after its receipt— 
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(1) the Chair shall lay the message before the 
Senate; 
(2) the motion to insist on the Senate amend-
ment or disagree to the House amendment or 
amendments to the Senate amendment, the request 
for a conference with the House or the motion to 
agree to the request of the House for a conference, 
and the motion to authorize the Chair to appoint 
conferees on the part of the Senate shall be agreed 
to; and 
(3) the Chair shall then be authorized to ap-
point conferees on the part of the Senate without in-
tervening motion, with a ratio agreed to with the 
concurrence of both leaders. 
(g) RULEMAKING.—This section is enacted by the 
Congress as an exercise of the rulemaking power of the 
House of Representatives and Senate, respectively, and as 
such is deemed a part of the rules of each House, respec-
tively, or of that House to which they specifically apply, 
and such procedures supersede other rules only to the ex-
tent that they are inconsistent with such rules; and with 
full recognition of the constitutional right of either House 
to change the rules (so far as relating to the procedures 
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of that House) at any time, in the same manner, and to 
the same extent as any other rule of that House. 
Passed the House of Representatives August 1, 
2012. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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Calendar No. 502 
112TH CONGRESS 
2D SESSION 
H. R. 8 
AN ACT 
To extend certain tax relief provisions enacted in 
2001 and 2003, and to provide for expedited con-
sideration of a bill providing for comprehensive 
tax reform, and for other purposes. 
SEPTEMBER 11, 2012 
Read the second time and placed on the calendar 
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