To amend the Internal Revenue Code of 1986 to repeal certain tax cuts extended for high income individuals.

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 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 subparagraph (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 taxable 
                        income in the fourth rate bracket shall be 33 
                        percent to the extent such income does not 
                        exceed an amount equal to the excess 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 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 subsection (a), 2 such 
                                exemption amounts).
                    ``(C) Applicable threshold.--For purposes of this 
                paragraph, the term `applicable threshold' means--
                            ``(i) $500,000 in the case of subsection 
                        (a),
                            ``(ii) $400,000 in the case of subsections 
                        (b) and (c), and
                            ``(iii) \1/2\ the amount applicable under 
                        clause (i) (after adjustment, if any, under 
                        subparagraph (E)) in the case of subsection 
                        (d).
                    ``(D) Fourth rate bracket.--For purposes of this 
                paragraph, the term `fourth rate bracket' means the 
                bracket which would (determined without regard to this 
                paragraph) be the 36-percent rate bracket.
                    ``(E) Inflation adjustment.--For purposes of this 
                paragraph, a rule similar to the rule of paragraph 
                (1)(C) shall apply with respect 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 deductions.--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'',
                    (C) by striking subsection (b) and redesignating 
                subsections (c), (d), and (e) as subsections (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 section 151(d) of 
                such Code is amended--
                            (i) by striking ``the threshold amount'' in 
                        subparagraphs (A) and (B) and inserting ``the 
                        applicable threshold in effect under section 
                        1(i)(3)'',
                            (ii) by striking subparagraph (C) and 
                        redesignating subparagraph (D) as subparagraph 
                        (C), and
                            (iii) by striking subparagraphs (E) and 
                        (F).
                    (B) Conforming amendment.--Paragraph (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 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 Dividends.--
            (1) In general.--Paragraph (1) of section (1)(h) of such 
        Code is amended by striking subparagraph (C), by redesignating 
        subparagraphs (D) and (E) as subparagraphs (E) and (F) and by 
        inserting after subparagraph (B) the following new 
        subparagraphs:
                    ``(C) 15 percent of the lesser of--
                            ``(i) so much of the adjusted net capital 
                        gain (or, if less, taxable income) as exceeds 
                        the amount on which a tax is determined under 
                        subparagraph (B), or
                            ``(ii) the excess (if any) of--
                                    ``(I) the amount of taxable income 
                                which would (without regard to this 
                                subsection) be taxed at a rate below 36 
                                percent, over
                                    ``(II) the sum of the amounts on 
                                which tax is determined under 
                                subparagraphs (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 subsection) be 
                        taxed at a rate below 36 percent, over
                            ``(ii) taxable income reduced by qualified 
                        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, 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 subparagraph (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 subsection (b)(3)(B) and 
        paragraph (1).''.
            (4) Conforming amendments.--
                    (A) The following provisions are amended by 
                striking ``15 percent'' and inserting ``20 percent'':
                            (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 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 December 31, 2011)'' and 
                inserting ``20 percent''.
    (d) Application of EGTRRA Sunset.--Section 901 of the Economic 
Growth and Tax Relief Reconciliation Act of 2001 shall apply to the 
amendments made by this section.
    (e) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after December 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.

Summary: Fair and Impartial Reform Tax Act of 2011 - Amends the Internal Revenue Code to: (1) revise income tax rates for individuals and increase such rates for taxpayers with adjusted gross incomes in excess of $500,000, (2) impose limits on and phaseouts of personal exemptions and itemized deductions for high income taxpayers, (3) increase the tax rate on net capital gains and dividend income, and (4) increase the alternative minimum tax (AMT) on the net capital gains of noncorporate taxpayers for taxable years beginning after 2011.

Makes the general terminating date of the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) (i.e., December 31, 2012) applicable to the amendments made by this Act.