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 2012, applied by substituting ‘2010’ 
for ‘1992’ in subsection (f)(3)(B).’’. 
(b) 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), respectively, and 
by inserting after subparagraph (B) the following 
new subparagraphs: 
‘‘(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 
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this subsection) be taxed at a rate 
below 36 percent, over 
‘‘(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 
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the case of taxable years beginning after December 31, 
2012, 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 
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striking ‘‘15 percent of’’ and inserting ‘‘the 
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’’. 
(c) 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, 2012. 
(2) WITHHOLDING.—The amendments made by 
subparagraphs (A)(i) and (C) of subsection (b)(4) 
shall apply to amounts paid on or after January 1, 
2013. 
Æ 
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