I 
112TH CONGRESS 
1ST SESSION H. R. 2710 
To amend the Internal Revenue Code of 1986 to repeal certain tax cuts 
extended for high income individuals. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 29, 2011 
Mr. TONKO introduced the following bill; which was referred to the Committee 
on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to repeal 
certain tax cuts extended for high income individuals. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fair and Impartial 
Reform Tax Act of 2011’’. 
SEC. 2. REPEAL OF CERTAIN TAX CUTS EXTENDED FOR 
HIGH INCOME INDIVIDUALS. 
(a) INDIVIDUAL INCOME TAX RATES.—Subsection (i) 
of section 1 of the Internal Revenue Code of 1986 is 
amended by striking paragraph (2), by redesignating 
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paragraph (3) as paragraph (4), and by inserting after 
paragraph (1) the following new paragraphs: 
‘‘(2) 25- AND 28-PERCENT RATE BRACKETS.— 
The tables under subsections (a), (b), (c), (d), and 
(e) shall be applied— 
‘‘(A) by substituting ‘25%’ for ‘28%’ each 
place it appears (before the application of sub-
paragraph (B)), and 
‘‘(B) by substituting ‘28%’ for ‘31%’ each 
place it appears. 
‘‘(3) 33-PERCENT RATE BRACKET.— 
‘‘(A) IN GENERAL.—In the case of taxable 
years beginning after December 31, 2011— 
‘‘(i) the rate of tax under subsections 
(a), (b), (c), and (d) on a taxpayer’s tax-
able income in the fourth rate bracket shall 
be 33 percent to the extent such income 
does not exceed an amount equal to the ex-
cess of— 
‘‘(I) the applicable amount, over 
‘‘(II) the dollar amount at which 
such bracket begins, and 
‘‘(ii) the 36-percent rate of tax under 
such subsections shall apply only to the 
taxpayer’s taxable income in such bracket 
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in excess of the amount to which clause (i) 
applies. 
‘‘(B) APPLICABLE AMOUNT.—For purposes 
of this paragraph, the term ‘applicable amount’ 
means the excess of— 
‘‘(i) the applicable threshold, over 
‘‘(ii) the sum of the following amounts 
in effect for the taxable year: 
‘‘(I) the basic standard deduction 
(within 
the 
meaning 
of 
section 
63(c)(2)), and 
‘‘(II) 
the 
exemption 
amount 
(within 
the 
meaning 
of 
section 
151(d)(1)) (or, in the case of sub-
section 
(a), 
such 
exemption 
amounts). 
‘‘(C) APPLICABLE THRESHOLD.—For pur-
poses of this paragraph, the term ‘applicable 
threshold’ means— 
‘‘(i) $500,000 in the case of sub-
section (a), 
‘‘(ii) $400,000 in the case of sub-
sections (b) and (c), and 
‘‘(iii) 1⁄2 the amount applicable under 
clause (i) (after adjustment, if any, under 
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subparagraph (E)) in the case of sub-
section (d). 
‘‘(D) FOURTH RATE BRACKET.—For pur-
poses of this paragraph, the term ‘fourth rate 
bracket’ means the bracket which would (deter-
mined without regard to this paragraph) be the 
36-percent rate bracket. 
‘‘(E) INFLATION ADJUSTMENT.—For pur-
poses of this paragraph, a rule similar to the 
rule of paragraph (1)(C) shall apply with re-
spect to taxable years beginning in calendar 
years after 2011, applied by substituting ‘2009’ 
for ‘1992’ in subsection (f)(3)(B).’’. 
(b) PHASEOUT
OF PERSONAL EXEMPTIONS
AND 
ITEMIZED DEDUCTIONS.— 
(1) OVERALL LIMITATION ON ITEMIZED DEDUC-
TIONS.—Section 68 of such Code is amended— 
(A) by striking ‘‘the applicable amount’’ 
the first place it appears in subsection (a) and 
inserting ‘‘the applicable threshold in effect 
under section 1(i)(3)’’, 
(B) by striking ‘‘the applicable amount’’ in 
subsection (a)(1) and inserting ‘‘such applicable 
threshold’’, 
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(C) by striking subsection (b) and redesig-
nating subsections (c), (d), and (e) as sub-
sections (b), (c), and (d), respectively, and 
(D) by striking subsections (f) and (g). 
(2) PHASEOUT OF DEDUCTIONS FOR PERSONAL 
EXEMPTIONS.— 
(A) IN GENERAL.—Paragraph (3) of sec-
tion 151(d) of such Code is amended— 
(i) by striking ‘‘the threshold amount’’ 
in subparagraphs (A) and (B) and insert-
ing ‘‘the applicable threshold in effect 
under section 1(i)(3)’’, 
(ii) by striking subparagraph (C) and 
redesignating subparagraph (D) as sub-
paragraph (C), and 
(iii) by striking subparagraphs (E) 
and (F). 
(B) 
CONFORMING
AMENDMENT.—Para-
graph (4) of section 151(d) of such Code is 
amended— 
(i) by striking subparagraph (B), 
(ii) by redesignating clauses (i) and 
(ii) of subparagraph (A) as subparagraphs 
(A) and (B), respectively, and by indenting 
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such subparagraphs (as so redesignated) 
accordingly, and 
(iii) by striking all that precedes ‘‘in 
a calendar year after 1989,’’ and inserting 
the following: 
‘‘(4) INFLATION ADJUSTMENT.—In the case of 
any taxable year beginning’’. 
(c) REDUCED RATE ON CAPITAL GAINS AND DIVI-
DENDS.— 
(1) IN
GENERAL.—Paragraph (1) of section 
(1)(h) of such Code is amended by striking subpara-
graph (C), by redesignating subparagraphs (D) and 
(E) as subparagraphs (E) and (F) and by inserting 
after subparagraph (B) the following new subpara-
graphs: 
‘‘(C) 15 percent of the lesser of— 
‘‘(i) so much of the adjusted net cap-
ital gain (or, if less, taxable income) as ex-
ceeds the amount on which a tax is deter-
mined under subparagraph (B), or 
‘‘(ii) the excess (if any) of— 
‘‘(I) the amount of taxable in-
come which would (without regard to 
this subsection) be taxed at a rate 
below 36 percent, over 
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‘‘(II) the sum of the amounts on 
which tax is determined under sub-
paragraphs (A) and (B), 
‘‘(D) 20 percent of the adjusted net capital 
gain (or, if less, taxable income) in excess of the 
sum of the amounts on which tax is determined 
under subparagraphs (B) and (C),’’. 
(2) DIVIDENDS.—Subparagraph (A) of section 
1(h)(11) of such Code is amended by striking 
‘‘qualified dividend income’’ and inserting ‘‘so much 
of the qualified dividend income as does not exceed 
the excess (if any) of— 
‘‘(i) the amount of taxable income 
which would (without regard to this sub-
section) be taxed at a rate below 36 per-
cent, over 
‘‘(ii) taxable income reduced by quali-
fied dividend income.’’. 
(3) MINIMUM TAX.—Section 55 of such Code is 
amended by adding at the end the following new 
subsection: 
‘‘(f) APPLICATION OF MAXIMUM RATE OF TAX ON 
NET CAPITAL GAIN OF NONCORPORATE TAXPAYERS.—In 
the case of taxable years beginning after December 31, 
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2011, the amount determined under subparagraph (C) of 
subsection (b)(3) shall be the sum of— 
‘‘(1) 15 percent of the lesser of— 
‘‘(A) so much of the adjusted net capital 
gain (or, if less, taxable excess) as exceeds the 
amount on which tax is determined under sub-
paragraph (B) of subsection (b)(3), or 
‘‘(B) the excess described in section 
1(h)(1)(C)(ii), plus 
‘‘(2) 20 percent of the adjusted net capital gain 
(or, if less, taxable excess) in excess of the sum of 
the amounts on which tax is determined under sub-
section (b)(3)(B) and paragraph (1).’’. 
(4) CONFORMING AMENDMENTS.— 
(A) The following provisions are amended 
by striking ‘‘15 percent’’ and inserting ‘‘20 per-
cent’’: 
(i) Section 1445(e)(1) of such Code. 
(ii) The second sentence of section 
7518(g)(6)(A) of such Code. 
(iii) Section 53511(f)(2) of title 46, 
United States Code. 
(B) Sections 531 and 541 of the Internal 
Revenue Code of 1986 are each amended by 
striking ‘‘15 percent of’’ and inserting ‘‘the 
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product of the highest rate of tax under section 
1(c) and’’. 
(C) Section 1445(e)(6) of such Code is 
amended by striking ‘‘15 percent (20 percent in 
the case of taxable years beginning after De-
cember 31, 2011)’’ and inserting ‘‘20 percent’’. 
(d) APPLICATION OF EGTRRA SUNSET.—Section 
901 of the Economic Growth and Tax Relief Reconcili-
ation Act of 2001 shall apply to the amendments made 
by this section. 
(e) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to taxable years beginning after Decem-
ber 31, 2011. 
(2) WITHHOLDING.—The amendments made by 
subparagraphs (A)(i) and (C) of subsection (c)(4) 
shall apply to amounts paid on or after January 1, 
2012. 
Æ 
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