I 
113TH CONGRESS 
1ST SESSION 
H. R. 699 
To amend the Balanced Budget and Emergency Deficit Control Act of 1985 
to repeal and replace the fiscal year 2013 sequestration. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 14, 2013 
Mr. VAN HOLLEN (for himself, Mr. HOYER, Mr. GEORGE MILLER of Cali-
fornia, Ms. DELAURO, Mr. POCAN, Ms. CASTOR of Florida, Mr. MORAN, 
Mr. KILDEE, Mr. HUFFMAN, and Mr. HOLT) introduced the following 
bill; which was referred to the Committee on Ways and Means, and in 
addition to the Committees on the Budget and Agriculture, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To amend the Balanced Budget and Emergency Deficit Con-
trol Act of 1985 to repeal and replace the fiscal year 
2013 sequestration. 
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 ‘‘Stop the Sequester 
Job Loss Now Act’’. 
SEC. 2. TABLE OF CONTENTS. 
Sec. 1. Short title. 
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Sec. 2. Table of contents. 
TITLE I—BUDGET PROCESS AMENDMENTS TO REPLACE FISCAL 
YEAR 2013 SEQUESTRATION 
Sec. 101. Repeal and replace the 2013 sequester. 
Sec. 102. Protecting veterans programs from sequester. 
TITLE II—AGRICULTURAL SAVINGS 
Sec. 201. One-year extension of agricultural commodity programs, except direct 
payment programs. 
TITLE III—OIL AND GAS SUBSIDIES 
Sec. 301. Limitation on section 199 deduction attributable to oil, natural gas, 
or primary products thereof. 
Sec. 302. Prohibition on using last-in, first-out accounting for major integrated 
oil companies. 
Sec. 303. Modifications of foreign tax credit rules applicable to major inte-
grated oil companies which are dual capacity taxpayers. 
TITLE IV—THE BUFFETT RULE 
Sec. 401. Fair share tax on high-income taxpayers. 
TITLE V—SENSE OF THE HOUSE 
Sec. 501. Sense of the House on the need for a fair, balanced and bipartisan 
approach to long-term deficit reduction. 
TITLE 
I—BUDGET 
PROCESS 
AMENDMENTS TO REPLACE 
FISCAL YEAR 2013 SEQUES-
TRATION 
SEC. 101. REPEAL THE 2013 SEQUESTER AND DELAY THE 
2014 SEQUESTER. 
(a) CALCULATION OF TOTAL DEFICIT REDUCTION 
AND ALLOCATION
TO FUNCTIONS.—(1) Subparagraph 
(E) of section 251A(3) is amended to read as follows: 
‘‘(E) For fiscal year 2014, reducing the amount 
calculated under subparagraphs (A) through (D) by 
$27,500,000,000.’’. 
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(2) Paragraph (4) of section 251A of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (2 
U.S.C. 901a) is amended by striking ‘‘On March 1, 2013, 
for fiscal year 2013, and in its sequestration preview re-
port for fiscal years 2014 through 2021’’ and inserting 
‘‘On January 2, 2014, for fiscal year 2014, and in its se-
questration preview report for fiscal years 2015 through 
2021’’. 
(b) DEFENSE AND NONDEFENSE FUNCTION REDUC-
TIONS.—Paragraphs (5) and (6) of section 251A of the 
Balanced Budget and Emergency Deficit Control Act of 
1985 are amended by striking ‘‘2013’’ and inserting 
‘‘2014’’ each place it appears. 
(c) IMPLEMENTING DISCRETIONARY REDUCTIONS.— 
(1) Section 251A(7)(A) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by 
striking ‘‘2013.—On January 2, 2013, for fiscal year 
2013’’ and inserting ‘‘2014.—On January 2, 2014, for fis-
cal year 2014’’. 
(2) Section 251A(7)(B) of such Act is amended by 
striking ‘‘2014’’ and inserting ‘‘2015’’ each place it ap-
pears. 
(d) SAVINGS.—The savings set forth by the enact-
ment of title II shall achieve the savings that would other-
wise have occurred as a result of the sequestration under 
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section 251A of the Balanced Budget and Emergency Def-
icit Control Act of 1985. 
SEC. 102. PROTECTING VETERANS PROGRAMS FROM SE-
QUESTER. 
Section 256(e)(2)(E) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is repealed. 
TITLE II—AGRICULTURAL 
SAVINGS 
SEC. 201. ONE-YEAR EXTENSION OF AGRICULTURAL COM-
MODITY PROGRAMS, EXCEPT DIRECT PAY-
MENT PROGRAMS. 
(a) EXTENSION.—Except as provided in subsection 
(b) and notwithstanding any other provision of law, the 
authorities provided by each provision of title I of the 
Food, Conservation, and Energy Act of 2008 (Public Law 
110–246; 122 Stat. 1651) and each amendment made by 
that title (and for mandatory programs at such funding 
levels), as in effect on September 30, 2013, shall continue, 
and the Secretary of Agriculture shall carry out the au-
thorities, until September 30, 2014. 
(b) TERMINATION
OF
DIRECT
PAYMENT
PRO-
GRAMS.— 
(1) COVERED
COMMODITIES.—The extension 
provided by subsection (a) shall not apply with re-
spect to the direct payment program under section 
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1103 of the Food, Conservation, and Energy Act of 
2008 (7 U.S.C. 8713). 
(2) PEANUTS.—The extension provided by sub-
section (a) shall not apply with respect to the direct 
payment program under section 1303 of the Food, 
Conservation, and Energy Act of 2008 (7 U.S.C. 
7953). 
(c) EFFECTIVE DATE.—This section shall take effect 
on the earlier of— 
(1) the date of the enactment of this Act; and 
(2) September 30, 2013. 
TITLE III—OIL AND GAS 
SUBSIDIES 
SEC. 301. LIMITATION ON SECTION 199 DEDUCTION ATTRIB-
UTABLE TO OIL, NATURAL GAS, OR PRIMARY 
PRODUCTS THEREOF. 
(a) DENIAL OF DEDUCTION.—Paragraph (4) of sec-
tion 199(c) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subpara-
graph: 
‘‘(E) SPECIAL
RULE
FOR
CERTAIN
OIL 
AND GAS INCOME.—In the case of any taxpayer 
who is a major integrated oil company (as de-
fined in section 167(h)(5)(B)) for the taxable 
year, the term ‘domestic production gross re-
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ceipts’ shall not include gross receipts from the 
production, transportation, or distribution of 
oil, natural gas, or any primary product (within 
the meaning of subsection (d)(9)) thereof.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years ending after De-
cember 31, 2013. 
SEC. 302. PROHIBITION ON USING LAST-IN, FIRST-OUT AC-
COUNTING FOR MAJOR INTEGRATED OIL 
COMPANIES. 
(a) IN GENERAL.—Section 472 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(h) MAJOR INTEGRATED OIL COMPANIES.—Not-
withstanding any other provision of this section, a major 
integrated 
oil 
company 
(as 
defined 
in 
section 
167(h)(5)(B)) may not use the method provided in sub-
section (b) in inventorying of any goods.’’. 
(b) EFFECTIVE DATE AND SPECIAL RULE.— 
(1) IN
GENERAL.—The amendment made by 
subsection (a) shall apply to taxable years ending 
after December 31, 2013. 
(2) CHANGE IN METHOD OF ACCOUNTING.—In 
the case of any taxpayer required by the amendment 
made by this section to change its method of ac-
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counting for its first taxable year ending after De-
cember 31, 2013— 
(A) such change shall be treated as initi-
ated by the taxpayer, 
(B) such change shall be treated as made 
with the consent of the Secretary of the Treas-
ury, and 
(C) the net amount of the adjustments re-
quired to be taken into account by the taxpayer 
under section 481 of the Internal Revenue Code 
of 1986 shall be taken into account ratably over 
a period (not greater than 8 taxable years) be-
ginning with such first taxable year. 
SEC. 303. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 
APPLICABLE TO MAJOR INTEGRATED OIL 
COMPANIES WHICH ARE DUAL CAPACITY 
TAXPAYERS. 
(a) IN GENERAL.—Section 901 of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
(n) as subsection (o) and by inserting after subsection (m) 
the following new subsection: 
‘‘(n) SPECIAL RULES RELATING TO MAJOR INTE-
GRATED OIL COMPANIES WHICH ARE DUAL CAPACITY 
TAXPAYERS.— 
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‘‘(1) GENERAL
RULE.—Notwithstanding any 
other provision of this chapter, any amount paid or 
accrued by a dual capacity taxpayer which is a 
major integrated oil company (as defined in section 
167(h)(5)(B)) to a foreign country or possession of 
the United States for any period shall not be consid-
ered a tax— 
‘‘(A) if, for such period, the foreign coun-
try or possession does not impose a generally 
applicable income tax, or 
‘‘(B) to the extent such amount exceeds 
the amount (determined in accordance with reg-
ulations) which— 
‘‘(i) is paid by such dual capacity tax-
payer pursuant to the generally applicable 
income tax imposed by the country or pos-
session, or 
‘‘(ii) would be paid if the generally ap-
plicable income tax imposed by the country 
or possession were applicable to such dual 
capacity taxpayer. 
Nothing in this paragraph shall be construed to 
imply the proper treatment of any such amount 
not in excess of the amount determined under 
subparagraph (B). 
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‘‘(2) DUAL
CAPACITY
TAXPAYER.—For pur-
poses of this subsection, the term ‘dual capacity tax-
payer’ means, with respect to any foreign country or 
possession of the United States, a person who— 
‘‘(A) is subject to a levy of such country or 
possession, and 
‘‘(B) receives (or will receive) directly or 
indirectly a specific economic benefit (as deter-
mined in accordance with regulations) from 
such country or possession. 
‘‘(3) GENERALLY APPLICABLE INCOME TAX.— 
For purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘generally 
applicable income tax’ means an income tax (or 
a series of income taxes) which is generally im-
posed under the laws of a foreign country or 
possession on income derived from the conduct 
of a trade or business within such country or 
possession. 
‘‘(B) EXCEPTIONS.—Such term shall not 
include a tax unless it has substantial applica-
tion, by its terms and in practice, to— 
‘‘(i) persons who are not dual capacity 
taxpayers, and 
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‘‘(ii) persons who are citizens or resi-
dents of the foreign country or posses-
sion.’’. 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to taxes paid or accrued in 
taxable years beginning after the date of the enact-
ment of this Act. 
(2) 
CONTRARY
TREATY
OBLIGATIONS 
UPHELD.—The amendments made by this section 
shall not apply to the extent contrary to any treaty 
obligation of the United States. 
TITLE IV—THE BUFFETT RULE 
SEC. 401. FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS. 
(a) IN GENERAL.—Subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new part: 
‘‘PART VII—FAIR SHARE TAX ON HIGH-INCOME 
TAXPAYERS 
‘‘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— 
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