Stop the Sequester Job Loss Now Act

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.
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 
                            integrated 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 
                             SEQUESTRATION

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.''.
    (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 report for fiscal years 2014 through 2021'' and 
inserting ``On January 2, 2014, for fiscal year 2014, and in its 
sequestration preview report for fiscal years 2015 through 2021''.
    (b) Defense and Nondefense Function Reductions.--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 fiscal year 2014''.
    (2) Section 251A(7)(B) of such Act is amended by striking ``2014'' 
and inserting ``2015'' each place it appears.
    (d) Savings.--The savings set forth by the enactment of title II 
shall achieve the savings that would otherwise have occurred as a 
result of the sequestration under section 251A of the Balanced Budget 
and Emergency Deficit Control Act of 1985.

SEC. 102. PROTECTING VETERANS PROGRAMS FROM SEQUESTER.

    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 COMMODITY PROGRAMS, EXCEPT 
              DIRECT PAYMENT 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 authorities, until September 30, 2014.
    (b) Termination of Direct Payment Programs.--
            (1) Covered commodities.--The extension provided by 
        subsection (a) shall not apply with respect to the direct 
        payment program under section 1103 of the Food, Conservation, 
        and Energy Act of 2008 (7 U.S.C. 8713).
            (2) Peanuts.--The extension provided by subsection (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 ATTRIBUTABLE TO OIL, 
              NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.

    (a) Denial of Deduction.--Paragraph (4) of section 199(c) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new subparagraph:
                    ``(E) Special rule for certain oil and gas 
                income.--In the case of any taxpayer who is a major 
                integrated oil company (as defined in section 
                167(h)(5)(B)) for the taxable year, the term `domestic 
                production gross receipts' 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 December 31, 2013.

SEC. 302. PROHIBITION ON USING LAST-IN, FIRST-OUT ACCOUNTING FOR MAJOR 
              INTEGRATED OIL COMPANIES.

    (a) In General.--Section 472 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(h) Major Integrated Oil Companies.--Notwithstanding 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 subsection 
(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 accounting for its first taxable year 
        ending after December 31, 2013--
                    (A) such change shall be treated as initiated by 
                the taxpayer,
                    (B) such change shall be treated as made with the 
                consent of the Secretary of the Treasury, and
                    (C) the net amount of the adjustments required 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) beginning 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 Revenue 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 Integrated Oil Companies 
Which Are Dual Capacity Taxpayers.--
            ``(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 considered a tax--
                    ``(A) if, for such period, the foreign country or 
                possession does not impose a generally applicable 
                income tax, or
                    ``(B) to the extent such amount exceeds the amount 
                (determined in accordance with regulations) which--
                            ``(i) is paid by such dual capacity 
                        taxpayer pursuant to the generally applicable 
                        income tax imposed by the country or 
                        possession, or
                            ``(ii) would be paid if the generally 
                        applicable 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).
            ``(2) Dual capacity taxpayer.--For purposes of this 
        subsection, the term `dual capacity taxpayer' 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 determined 
                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 imposed 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 application, by its terms 
                and in practice, to--
                            ``(i) persons who are not dual capacity 
                        taxpayers, and
                            ``(ii) persons who are citizens or 
                        residents of the foreign country or 
                        possession.''.
    (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 enactment 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--
                    ``(A) the amount determined under paragraph (2), 
                and
                    ``(B) a fraction (not to exceed 1)--
                            ``(i) the numerator of which is the excess 
                        of--
                                    ``(I) the taxpayer's adjusted gross 
                                income, over
                                    ``(II) the dollar amount in effect 
                                under subsection (c)(1), and
                            ``(ii) the denominator of which is the 
                        dollar amount in effect under subsection 
                        (c)(1).
            ``(2) Amount of tax.--The amount of tax determined under 
        this paragraph is an amount equal to the excess (if any) of--
                    ``(A) the tentative fair share tax for the taxable 
                year, over
                    ``(B) the excess of--
                            ``(i) the sum of--
                                    ``(I) the regular tax liability (as 
                                defined in section 26(b)) for the 
                                taxable year,
                                    ``(II) the tax imposed by section 
                                55 for the taxable year, plus
                                    ``(III) the payroll tax for the 
                                taxable year, over
                            ``(ii) the credits allowable under part IV 
                        of subchapter A (other than sections 27(a), 31, 
                        and 34).
    ``(b) Tentative Fair Share Tax.--For purposes of this section--
            ``(1) In general.--The tentative fair share tax for the 
        taxable year is 30 percent of the excess of--
                    ``(A) the adjusted gross income of the taxpayer, 
                over
                    ``(B) the modified charitable contribution 
                deduction for the taxable year.
            ``(2) Modified charitable contribution deduction.--For 
        purposes of paragraph (1)--
                    ``(A) In general.--The modified charitable 
                contribution deduction for any taxable year is an 
                amount equal to the amount which bears the same ratio 
                to the deduction allowable under section 170 (section 
                642(c) in the case of a trust or estate) for such 
                taxable year as--
                            ``(i) the amount of itemized deductions 
                        allowable under the regular tax (as defined in 
                        section 55) for such taxable year, determined 
                        after the application of section 68, bears to
                            ``(ii) such amount, determined before the 
                        application of section 68.
                    ``(B) Taxpayer must itemize.--In the case of any 
                individual who does not elect to itemize deductions for 
                the taxable year, the modified charitable contribution 
                deduction shall be zero.
    ``(c) High-Income Taxpayer.--For purposes of this section--
            ``(1) In general.--The term `high-income taxpayer' means, 
        with respect to any taxable year, any taxpayer (other than a 
        corporation) with an adjusted gross income for such taxable 
        year in excess of $1,000,000 (50 percent of such amount in the 
        case of a married individual who files a separate return).
            ``(2) Inflation adjustment.--
                    ``(A) In general.--In the case of a taxable year 
                beginning after 2014, the $1,000,000 amount under 
                paragraph (1) shall be increased by an amount equal 
                to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2013' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--If any amount as adjusted under 
                subparagraph (A) is not a multiple of $10,000, such 
                amount shall be rounded to the next lowest multiple of 
                $10,000.
    ``(d) Payroll Tax.--For purposes of this section, the payroll tax 
for any taxable year is an amount equal to the excess of--
            ``(1) the taxes imposed on the taxpayer under sections 
        1401, 1411, 3101, 3201, and 3211(a) (to the extent such taxes 
        are attributable to the rate of tax in effect under section 
        3101) with respect to such taxable year or wages or 
        compensation received during the taxable year, over
            ``(2) the deduction allowable under section 164(f) for such 
        taxable year.
    ``(e) Special Rule for Estates and Trusts.--For purposes of this 
section, in the case of an estate or trust, adjusted gross income shall 
be computed in the manner described in section 67(e).
    ``(f) Not Treated as Tax Imposed by This Chapter for Certain 
Purposes.--The tax imposed under this section shall not be treated as 
tax imposed by this chapter for purposes of determining the amount of 
any credit under this chapter (other than the credit allowed under 
section 27(a)) or for purposes of section 55.''.
    (b) Conforming Amendment.--Section 26(b)(2) of such Code is amended 
by redesignating subparagraphs (C) through (X) as subparagraphs (D) 
through (Y), respectively, and by inserting after subparagraph (B) the 
following new subparagraph:
                    ``(C) section 59B (relating to fair share tax),''.
    (c) Clerical Amendment.--The table of parts for subchapter A of 
chapter 1 of such Code is amended by adding at the end the following 
new item:

``Part VII--Fair Share Tax on High-Income Taxpayers''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2013.

                      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.

    (a) The House finds that--
            (1) every bipartisan commission has recommended--and the 
        majority of Americans agree--that we should take a balanced, 
        bipartisan approach to reducing the deficit that addresses both 
        revenue and spending; and
            (2) sequestration is a meat-ax approach to deficit 
        reduction that imposes deep and mindless cuts, regardless of 
        their impact on vital services and investments.
    (b) It is the sense of the House that the Congress should replace 
the entire 10-year sequester established by the Budget Control Act of 
2011 with a balanced approach that would increase revenues without 
increasing the tax burden on middle-income Americans, and decrease 
long-term spending while maintaining the Medicare guarantee, protecting 
Social Security and a strong social safety net, and making strategic 
investments in education, science, research, and critical 
infrastructure necessary to compete in the global economy.

Summary: Stop the Sequester Job Loss Now Act - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to repeal the FY2013 sequester and reduce the FY2014 sequester. Eliminates the 2% maximum permissible reduction in budget authority for veterans' medical care. Extends through FY2014 agricultural commodity programs generally under the Food, Conservation, and Energy Act of 2008, but not the direct payment programs for wheat, corn, grain sorghum, barley, oats, upland cotton, long and medium grain rice, soybeans, other oilseeds, and peanuts. Amends the Internal Revenue Code, with respect to deductions from income, to set a special rule that a major integrated oil company's domestic production gross receipts shall not include any gross receipts from the production, refining, processing, transportation, or distribution of oil, natural gas, or any of their primary products. Prohibits a major integrated oil company from using the last-in, first-out (LIFO) accounting method in inventorying goods. Prescribes a special rule to limit the foreign tax credit and tax deferrals for amounts paid or accrued by a major integrated oil company that is a dual capacity taxpayer (a person subject to a levy of a foreign country or U.S. possession and receives, or will receive, directly or indirectly a specific economic benefit from such county or possession). Requires an individual taxpayer whose adjusted gross income exceeds $1 million to pay a minimum (fair share) tax rate of 30% of the excess of the taxpayer's adjusted gross income over the taxpayer's modified charitable contribution deduction for the taxable year. Declares that it is the sense of the House that Congress should replace the entire 10-year sequester established by the Budget Control Act of 2011 with a balanced approach that would: (1) increase revenues without increasing the tax burden on middle-income Americans; and (2) decrease long-term spending while maintaining the Medicare guarantee, protecting Social Security and a strong social safety net, and making strategic investments in education, science, research, and critical infrastructure necessary to compete in the global economy.