Title: Bank on Students Emergency Loan Refinancing Act
Policy area: Education

Summary:
Bank on Students Emergency Loan Refinancing Act
This bill revises requirements concerning student loan debt.
Specifically, the bill establishes a program that allows eligible individuals with federal or private student loans to refinance them down to the lower rates offered to new federal borrowers in the 2016-2017 school year under certain circumstances.
In addition, the bill requires an individual taxpayer whose adjusted gross income exceeds $1 million to pay a minimum 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 (commonly known as the tentative fair share tax).

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 768 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  1st Session
                                 S. 768

     To amend the Higher Education Act of 1965 to provide for the 
 refinancing of certain Federal student loans, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 13, 2019

 Ms. Warren (for herself, Ms. Baldwin, Mr. Bennet, Mr. Blumenthal, Mr. 
  Booker, Mr. Brown, Ms. Cantwell, Mr. Cardin, Mr. Casey, Ms. Cortez 
Masto, Ms. Duckworth, Mr. Durbin, Mrs. Feinstein, Mrs. Gillibrand, Ms. 
Harris, Ms. Hassan, Ms. Hirono, Ms. Klobuchar, Mr. Leahy, Mr. Manchin, 
  Mr. Markey, Mr. Menendez, Mr. Merkley, Mr. Murphy, Mr. Peters, Mr. 
 Reed, Mr. Sanders, Mrs. Shaheen, Ms. Smith, Ms. Stabenow, Mr. Udall, 
Mr. Van Hollen, Mr. Whitehouse, Mr. Wyden, and Mr. Heinrich) introduced 
the following bill; which was read twice and referred to the Committee 
                               on Finance

_______________________________________________________________________

                                 A BILL


 
     To amend the Higher Education Act of 1965 to provide for the 
 refinancing of certain Federal student loans, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bank on Students Emergency Loan 
Refinancing Act''.

                     TITLE I--REFINANCING PROGRAMS

SEC. 101. REFINANCING PROGRAMS.

    (a) Program Authority.--Section 451(a) of the Higher Education Act 
of 1965 (20 U.S.C. 1087a(a)) is amended--
            (1) by striking ``and (2)'' and inserting ``(2)''; and
            (2) by inserting ``; and (3) to make loans under section 
        460A and section 460B'' after ``section 459A''.
    (b) Refinancing Program.--Part D of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1087a et seq.) is amended by adding at 
the end the following:

``SEC. 460A. REFINANCING FFEL AND FEDERAL DIRECT LOANS.

    ``(a) In General.--Beginning not later than 180 days after the date 
of enactment of the Bank on Students Emergency Loan Refinancing Act, 
the Secretary shall establish a program under which the Secretary, upon 
the receipt of an application from a qualified borrower, makes a loan 
under this part, in accordance with the provisions of this section, in 
order to permit the borrower to obtain the interest rate provided under 
subsection (c).
    ``(b) Refinancing Direct Loans.--
            ``(1) Federal direct loans.--Upon application of a 
        qualified borrower, the Secretary shall repay a Federal Direct 
        Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, a 
        Federal Direct PLUS Loan, or a Federal Direct Consolidation 
        Loan of the qualified borrower, for which the first 
        disbursement was made, or the application for the consolidation 
        loan was received, before July 1, 2019, with the proceeds of a 
        refinanced Federal Direct Stafford Loan, a Federal Direct 
        Unsubsidized Stafford Loan, a Federal Direct PLUS Loan, or a 
        Federal Direct Consolidation Loan, respectively, issued to the 
        borrower in an amount equal to the sum of the unpaid principal, 
        accrued unpaid interest, and late charges of the original loan.
            ``(2) Refinancing ffel program loans as refinanced federal 
        direct loans.--Upon application of a qualified borrower for any 
        loan that was made, insured, or guaranteed under part B and for 
        which the first disbursement was made, or the application for 
        the consolidation loan was received, before July 1, 2010, the 
        Secretary shall make a loan under this part, in an amount equal 
        to the sum of the unpaid principal, accrued unpaid interest, 
        and late charges of the original loan to the borrower in 
        accordance with the following:
                    ``(A) The Secretary shall pay the proceeds of such 
                loan to the eligible lender of the loan made, insured, 
                or guaranteed under part B, in order to discharge the 
                borrower from any remaining obligation to the lender 
                with respect to the original loan.
                    ``(B) A loan made under this section that was 
                originally a loan made, insured, or guaranteed--
                            ``(i) under section 428 shall be a Federal 
                        Direct Stafford Loan;
                            ``(ii) under section 428B shall be a 
                        Federal Direct PLUS Loan;
                            ``(iii) under section 428H shall be a 
                        Federal Direct Unsubsidized Stafford Loan; and
                            ``(iv) under section 428C shall be a 
                        Federal Direct Consolidation Loan.
                    ``(C) The interest rate for each loan made by the 
                Secretary under this paragraph shall be the rate 
                provided under subsection (c).
    ``(c) Interest Rates.--
            ``(1) In general.--The interest rate for the refinanced 
        Federal Direct Stafford Loans, Federal Direct Unsubsidized 
        Stafford Loans, Federal Direct PLUS Loans, and Federal Direct 
        Consolidation Loans, shall be a rate equal to--
                    ``(A) in any case where the original loan was a 
                loan under section 428 or 428H, a Federal Direct 
                Stafford loan, or a Federal Direct Unsubsidized 
                Stafford Loan, that was issued to an undergraduate 
                student, a rate equal to the rate for Federal Direct 
                Stafford Loans and Federal Direct Unsubsidized Stafford 
                Loans issued to undergraduate students for the 12-month 
                period beginning on July 1, 2016, and ending on June 
                30, 2017;
                    ``(B) in any case where the original loan was a 
                loan under section 428 or 428H, a Federal Direct 
                Stafford Loan, or a Federal Direct Unsubsidized 
                Stafford Loan, that was issued to a graduate or 
                professional student, a rate equal to the rate for 
                Federal Direct Unsubsidized Stafford Loans issued to 
                graduate or professional students for the 12-month 
                period beginning on July 1, 2016, and ending on June 
                30, 2017;
                    ``(C) in any case where the original loan was a 
                loan under section 428B or a Federal Direct PLUS Loan, 
                a rate equal to the rate for Federal Direct PLUS Loans 
                for the 12-month period beginning on July 1, 2016, and 
                ending on June 30, 2017; and
                    ``(D) in any case where the original loan was a 
                loan under section 428C or a Federal Direct 
                Consolidation Loan, a rate calculated in accordance 
                with paragraph (2).
            ``(2) Interest rates for consolidation loans.--
                    ``(A) Method of calculation.--In order to determine 
                the interest rate for any refinanced Federal Direct 
                Consolidation Loan under paragraph (1)(D), the 
                Secretary shall--
                            ``(i) determine each of the component loans 
                        that were originally consolidated in the loan 
                        under section 428C or the Federal Direct 
                        Consolidation Loan, and calculate the 
                        proportion of the unpaid principal balance of 
                        the loan under section 428C or the Federal 
                        Direct Consolidation Loan that each component 
                        loan represents;
                            ``(ii) use the proportions determined in 
                        accordance with clause (i) and the interest 
                        rate applicable for each component loan, as 
                        determined under subparagraph (B), to calculate 
                        the weighted average of the interest rates on 
                        the loans consolidated into the loan under 
                        section 428C or the Federal Direct 
                        Consolidation Loan; and
                            ``(iii) apply the weighted average 
                        calculated under clause (ii) as the interest 
                        rate for the refinanced Federal Direct 
                        Consolidation Loan.
                    ``(B) Interest rates for component loans.--The 
                interest rates for the component loans of a loan made 
                under section 428C or a Federal Direct Consolidation 
                Loan shall be the following:
                            ``(i) The interest rate for any loan under 
                        section 428 or 428H, Federal Direct Stafford 
                        Loan, or Federal Direct Unsubsidized Stafford 
                        Loan issued to an undergraduate student shall 
                        be a rate equal to the lesser of--
                                    ``(I) the rate for Federal Direct 
                                Stafford Loans and Federal Direct 
                                Unsubsidized Stafford Loans issued to 
                                undergraduate students for the 12-month 
                                period beginning on July 1, 2016, and 
                                ending on June 30, 2017; or
                                    ``(II) the original interest rate 
                                of the component loan.
                            ``(ii) The interest rate for any loan under 
                        section 428 or 428H, Federal Direct Stafford 
                        Loan, or Federal Direct Unsubsidized Stafford 
                        Loan issued to a graduate or professional 
                        student shall be a rate equal to the lesser 
                        of--
                                    ``(I) the rate for Federal Direct 
                                Unsubsidized Stafford Loans issued to 
                                graduate or professional students for 
                                the 12-month period beginning on July 
                                1, 2016, and ending on June 30, 2017; 
                                or
                                    ``(II) the original interest rate 
                                of the component loan.
                            ``(iii) The interest rate for any loan 
                        under section 428B or Federal Direct PLUS Loan 
                        shall be a rate equal to the lesser of--
                                    ``(I) the rate for Federal Direct 
                                PLUS Loans for the 12-month period 
                                beginning on July 1, 2016, and ending 
                                on June 30, 2017; or
                                    ``(II) the original interest rate 
                                of the component loan.
                            ``(iv) The interest rate for any component 
                        loan that is a loan under section 428C or a 
                        Federal Direct Consolidation Loan shall be the 
                        weighted average of the interest rates that 
                        would apply under this subparagraph for each 
                        loan comprising the component consolidation 
                        loan.
                            ``(v) The interest rate for any eligible 
                        loan that is a component of a loan made under 
                        section 428C or a Federal Direct Consolidation 
                        Loan and is not described in clauses (i) 
                        through (iv) shall be the interest rate on the 
                        original component loan.
            ``(3) Fixed rate.--The applicable rate of interest 
        determined under paragraph (1) for a refinanced loan under this 
        section shall be fixed for the period of the loan.
    ``(d) Terms and Conditions of Loans.--
            ``(1) In general.--A loan that is refinanced under this 
        section shall have the same terms and conditions as the 
        original loan, except as otherwise provided in this section.
            ``(2) No automatic extension of repayment period.--
        Refinancing a loan under this section shall not result in the 
        extension of the duration of the repayment period of the loan, 
        and the borrower shall retain the same repayment term that was 
        in effect on the original loan. Nothing in this paragraph shall 
        be construed to prevent a borrower from electing a different 
        repayment plan at any time in accordance with section 
        455(d)(3).
    ``(e) Definition of Qualified Borrower.--
            ``(1) In general.--For purposes of this section, the term 
        `qualified borrower' means a borrower--
                    ``(A) of a loan under this part or part B for which 
                the first disbursement was made, or the application for 
                a consolidation loan was received, before July 1, 2019; 
                and
                    ``(B) who meets the eligibility requirements based 
                on income or debt-to-income ratio established by the 
                Secretary.
            ``(2) Income requirements.--Not later than 180 days after 
        the date of enactment of the Bank on Students Emergency Loan 
        Refinancing Act, the Secretary shall establish eligibility 
        requirements based on income or debt-to-income ratio that take 
        into consideration providing access to refinancing under this 
        section for borrowers with the greatest financial need.
    ``(f) Notification to Borrowers.--The Secretary, in coordination 
with the Director of the Bureau of Consumer Financial Protection, shall 
undertake a campaign to alert borrowers of loans that are eligible for 
refinancing under this section that the borrowers are eligible to apply 
for such refinancing. The campaign shall include the following 
activities:
            ``(1) Developing consumer information materials about the 
        availability of Federal student loan refinancing.
            ``(2) Requiring servicers of loans under this part or part 
        B to provide such consumer information to borrowers in a manner 
        determined appropriate by the Secretary, in consultation with 
        the Director of the Bureau of Consumer Financial Protection.

``SEC. 460B. FEDERAL DIRECT REFINANCED PRIVATE LOAN PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Eligible private education loan.--The term `eligible 
        private education loan' means a private education loan, as 
        defined in section 140(a) of the Truth in Lending Act (15 
        U.S.C. 1650(a)), that--
                    ``(A) was disbursed to the borrower before July 1, 
                2019; and
                    ``(B) was for the borrower's own postsecondary 
                educational expenses for an eligible program at an 
                institution of higher education participating in the 
                loan program under this part, as of the date that the 
                loan was disbursed.
            ``(2) Federal direct refinanced private loan.--The term 
        `Federal Direct Refinanced Private Loan' means a loan issued 
        under subsection (b)(1).
            ``(3) Private educational lender.--The term `private 
        educational lender' has the meaning given the term in section 
        140(a) of the Truth in Lending Act (15 U.S.C. 1650(a)).
            ``(4) Qualified borrower.--The term `qualified borrower' 
        means an individual who--
                    ``(A) has an eligible private education loan;
                    ``(B) has been current on payments on the eligible 
                private education loan for the 6 months prior to the 
                date of the qualified borrower's application for 
                refinancing under this section, and is in good standing 
                on the loan at the time of such application;
                    ``(C) is not in default on the eligible private 
                education loan or on any loan made, insured, or 
                guaranteed under this part or part B or E; and
                    ``(D) meets the eligibility requirements described 
                in subsection (b)(2).
    ``(b) Program Authorized.--
            ``(1) In general.--The Secretary, in consultation with the 
        Secretary of the Treasury, shall carry out a program under 
        which the Secretary, upon application by a qualified borrower 
        who has an eligible private education loan, shall issue such 
        borrower a loan under this part in accordance with the 
        following:
                    ``(A) The loan issued under this program shall be 
                in an amount equal to the sum of the unpaid principal, 
                accrued unpaid interest, and late charges of the 
                private education loan.
                    ``(B) The Secretary shall pay the proceeds of the 
                loan issued under this program to the private 
                educational lender of the private education loan, in 
                order to discharge the qualified borrower from any 
                remaining obligation to the lender with respect to the 
                original loan.
                    ``(C) The Secretary shall require that the 
                qualified borrower undergo loan counseling that 
                provides all of the information and counseling required 
                under clauses (i) through (viii) of section 
                485(b)(1)(A) before the loan is refinanced in 
                accordance with this section, and before the proceeds 
                of such loan are paid to the private educational 
                lender.
                    ``(D) The Secretary shall issue the loan as a 
                Federal Direct Refinanced Private Loan, which shall 
                have the same terms, conditions, and benefits as a 
                Federal Direct Unsubsidized Stafford Loan, except as 
                otherwise provided in this section.
            ``(2) Borrower eligibility.--Not later than 180 days after 
        the date of enactment of the Bank on Students Emergency Loan 
        Refinancing Act, the Secretary, in consultation with the 
        Secretary of the Treasury and the Director of the Bureau of 
        Consumer Financial Protection, shall establish eligibility 
        requirements--
                    ``(A) based on income or debt-to-income ratio that 
                take into consideration providing access to refinancing 
                under this section for borrowers with the greatest 
                financial need;
                    ``(B) to ensure eligibility only for borrowers in 
                good standing;
                    ``(C) to minimize inequities between Federal Direct 
                Refinanced Private Loans and other Federal student 
                loans;
                    ``(D) to preclude windfall profits for private 
                educational lenders; and
                    ``(E) to ensure full access to the program 
                authorized in this subsection for borrowers with 
                private loans who otherwise meet the criteria 
                established in accordance with subparagraphs (A) and 
                (B).
    ``(c) Interest Rate.--
            ``(1) In general.--The interest rate for a Federal Direct 
        Refinanced Private Loan is--
                    ``(A) in the case of a Federal Direct Refinanced 
                Private Loan for a private education loan originally 
                issued for undergraduate postsecondary educational 
                expenses, a rate equal to the rate for Federal Direct 
                Stafford Loans and Federal Direct Unsubsidized Stafford 
                Loans issued to undergraduate students for the 12-month 
                period beginning on July 1, 2016, and ending on June 
                30, 2017; and
                    ``(B) in the case of a Federal Direct Refinanced 
                Private Loan for a private education loan originally 
                issued for graduate or professional degree 
                postsecondary educational expenses, a rate equal to the 
                rate for Federal Direct Unsubsidized Stafford Loans 
                issued to graduate or professional students for the 12-
                month period beginning on July 1, 2016, and ending on 
                June 30, 2017.
            ``(2) Combined undergraduate and graduate study loans.--If 
        a Federal Direct Refinanced Private Loan is for a private 
        education loan originally issued for both undergraduate and 
        graduate or professional postsecondary educational expenses, 
        the interest rate shall be a rate equal to the rate for Federal 
        Direct PLUS Loans for the 12-month period beginning on July 1, 
        2016, and ending on June 30, 2017.
            ``(3) Fixed rate.--The applicable rate of interest 
        determined under this subsection for a Federal Direct 
        Refinanced Private Loan shall be fixed for the period of the 
        loan.
    ``(d) No Inclusion in Aggregate Limits.--The amount of a Federal 
Direct Refinanced Private Loan, or a Federal Direct Consolidated Loan 
to the extent such loan was used to repay a Federal Direct Refinanced 
Private Loan, shall not be included in calculating a borrower's annual 
or aggregate loan limits under section 428 or 428H.
    ``(e) No Eligibility for Service-Related Repayment.--
Notwithstanding sections 428K(a)(2)(A), 428L(b)(2), 455(m)(3)(A), and 
460(b), a Federal Direct Refinanced Private Loan, or any Federal Direct 
Consolidation Loan to the extent such loan was used to repay a Federal 
Direct Refinanced Private Loan, shall not be eligible for any loan 
repayment or loan forgiveness program under section 428K, 428L, or 460 
or for the repayment plan for public service employees under section 
455(m).
    ``(f) Private Educational Lender Reporting Requirement.--
            ``(1) Reporting required.--Not later than 180 days after 
        the date of enactment of the Bank on Students Emergency Loan 
        Refinancing Act, the Secretary, in consultation with the 
        Secretary of the Treasury and the Director of the Bureau of 
        Consumer Financial Protection, shall establish a requirement 
        that private educational lenders report the data described in 
        paragraph (2) to the Secretary, to Congress, to the Secretary 
        of the Treasury, and to the Director of the Bureau of Consumer 
        Financial Protection, in order to allow for an assessment of 
        the private education loan market.
            ``(2) Contents of reporting.--The data that private 
        educational lenders shall report in accordance with paragraph 
        (1) shall include each of the following about private education 
        loans (as defined in section 140(a) of the Truth in Lending Act 
        (15 U.S.C. 1650(a))):
                    ``(A) The total amount of private education loan 
                debt the lender holds.
                    ``(B) The total number of private education loan 
                borrowers the lender serves.
                    ``(C) The average interest rate on the outstanding 
                private education loan debt held by the lender.
                    ``(D) The proportion of private education loan 
                borrowers who are in default on a loan held by the 
                lender.
                    ``(E) The proportion of the outstanding private 
                education loan volume held by the lender that is in 
                default.
                    ``(F) The proportions of outstanding private 
                education loan borrowers who are 30, 60, and 90 days 
                delinquent.
                    ``(G) The proportions of outstanding private 
                education loan volume that is 30, 60, and 90 days 
                delinquent.
    ``(g) Notification to Borrowers.--The Secretary, in coordination 
with the Secretary of the Treasury and the Director of the Bureau of 
Consumer Financial Protection, shall undertake a campaign to alert 
borrowers about the availability of private student loan refinancing 
under this section.''.
    (c) Amendments to Public Service Repayment Plan Provisions.--
Section 455(m) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)) 
is amended--
            (1) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively;
            (2) by inserting after paragraph (2) the following:
            ``(3) Special rules for section 460a loans.--
                    ``(A) Refinanced federal direct loans.--
                Notwithstanding paragraph (1), in determining the 
                number of monthly payments that meet the requirements 
                of such paragraph for an eligible Federal Direct Loan 
                refinanced under section 460A that was originally a 
                loan under this part, the Secretary shall include all 
                monthly payments made on the original loan that meet 
                the requirements of such paragraph.
                    ``(B) Refinanced ffel loans.--In the case of an 
                eligible Federal Direct Loan refinanced under section 
                460A that was originally a loan under part B, only 
                monthly payments made after the date on which the loan 
                was refinanced may be included for purposes of 
                paragraph (1).''; and
            (3) in paragraph (4)(A) (as redesignated by paragraph (1)), 
        by inserting ``(including any Federal Direct Stafford Loan, 
        Federal Direct PLUS Loan, Federal Direct Unsubsidized Stafford 
        Loan, or Federal Direct Consolidation Loan refinanced under 
        section 460A)'' before the period at the end.
    (d) Income-Based Repayment.--Section 493C of the Higher Education 
Act of 1965 (20 U.S.C. 1098e) is amended by adding at the end the 
following:
    ``(f) Special Rule for Refinanced Loans.--
            ``(1) Refinanced federal direct and ffel loans.--In 
        calculating the period of time during which a borrower of a 
        loan that is refinanced under section 460A has made monthly 
        payments for purposes of subsection (b)(7), the Secretary shall 
        deem the period to include all monthly payments made for the 
        original loan, and all monthly payments made for the refinanced 
        loan, that otherwise meet the requirements of this section.
            ``(2) Federal direct refinanced private loans.--In 
        calculating the period of time during which a borrower of a 
        Federal Direct Refinanced Private Loan under section 460B has 
        made monthly payments for purposes of subsection (b)(7), the 
        Secretary shall include only payments--
                    ``(A) that are made after the date of the issuance 
                of the Federal Direct Refinanced Private Loan; and
                    ``(B) that otherwise meet the requirements of this 
                section.''.

                        TITLE II--FAIR SHARE TAX

SEC. 201. 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 VIII--FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS

``Sec. 59B. Fair share tax.

``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, determined without regard 
                                to any tax liability determined under 
                                this section,
                                    ``(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 2020, 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 2019' 
                        for `calendar year 2016' in subparagraph 
                        (A)(ii) 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 tax is 
        attributable to the rate of tax in effect under section 3101) 
        with respect to such taxable year or wages or compensation 
        received during such 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) 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 VIII--Fair Share Tax on High-Income Taxpayers''.

    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2019.

 TITLE III--DEFICIT NEUTRAL IMPLEMENTATION OF STUDENT LOAN REFINANCING 
                                PROGRAMS

SEC. 301. DEFICIT NEUTRAL IMPLEMENTATION OF STUDENT LOAN REFINANCING 
              PROGRAMS; BUDGETARY EFFECTS.

    (a) Amount of Revenue.--The Secretary of Education shall estimate 
the amount that is equal to the amount of the net increase in revenue 
received in the Treasury during the 10-year period beginning on the 
date of enactment of this Act attributable to the amendments made by 
title II of this Act.
    (b) Deficit-Neutral Termination of the Refinancing Program.--The 
Secretary of Education shall terminate the refinancing programs carried 
out under sections 460A and 460B of the Higher Education Act of 1965 on 
the date that the net cost of carrying out such refinancing programs is 
equal to the amount of additional revenue estimated under subsection 
(a) or on the date that is 2 years after the date of enactment of this 
Act, whichever occurs first.
    (c) Deficit Reduction.--Any remaining increase in revenue described 
in subsection (a) and not used for the refinancing programs carried out 
under sections 460A and 460B of the Higher Education Act of 1965 shall 
be returned to the general fund of the Treasury for Federal budget 
deficit reduction.
    (d) Methodology.--When estimating cost and revenue under this 
section, the Secretary of Education shall utilize the accounting 
methods and assumptions that are used by the Congressional Budget 
Office, as of the date of enactment of this Act, to make such 
estimations.

SEC. 302. BUDGETARY EFFECTS.

    The budgetary effects of this Act and the amendments made by this 
Act shall not be entered on either PAYGO scorecard maintained pursuant 
to section 4(d) of the Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 
933(d)).
                                 <all>