Middle Class Tax Cut Act

Bill: 112-s-3412
Sponsor: Sen. Reid, Harry [D-NV]
Introduced: 2012-07-19 in the Senate
Policy area: Taxation
Subjects: Business investment and capital
Capital gains tax
Computers and information technology
Income tax credits
Income tax deductions
Income tax rates
Poverty and welfare assistance
Student aid and college costs
Tax administration and collection, taxpayers
Tax treatment of families
Wages and earnings

Summary:
action_date: 2012-07-19
text: 
Middle Class Tax Cut Act - Extends through 2013 for a taxpayer whose income is $200,000 or less ($250,000 for married couples filing a joint return): (1) the tax rate reductions and other tax benefits of the Economic Growth and Tax Relief Reconciliation Act of 2001, and (2) the reduction in the tax rate for dividend and capital gain income enacted by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Increases income tax rates and phases-out personal exemptions and itemized deductions for certain high-income taxpayers. 
 
Amends the Internal Revenue Code to extend through 2013: (1) the increased American Opportunity tax credit, (2) the increase in the refundable portion of the child tax credit, (3) the increased earned income tax credit percentage for three or more qualifying children, (4) the disregard of tax refunds in determining eligibility for federal and federally-assisted programs, and (5) the election to expense depreciable business assets.
 
Extends for one year: (1) the increased exemption amount for the alternative minimum tax (AMT), and (2) the offset against the AMT of certain nonrefundable personal tax credits. 
 
Provides that the budgetary effects of this Act shall not be taken into account under the Statutory Pay-As-You-Go Act of 2010. 

action_date: 2012-07-25
text: 

(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)

 
Middle Class Tax Cut Act - 
Title I: Temporary Extension of Tax Relief 
- (Sec. 101) Extends through 2013 for an individual taxpayer whose adjusted gross income is less than the applicable threshold amount (i.e., $200,000 for individual taxpayers, $225,000 for heads of household, and $250,000 for married couples filing a joint tax return) the tax rate reductions and other tax benefits of the Economic Growth and Tax Relief Reconciliation Act of 2001. 
 
Modifies individual income tax brackets for 2013 to reduce income tax for taxpayers whose adjusted gross income is less than the applicable threshold amount and to increase the income tax rate for taxpayers above such threshold amount. Provides for an inflation adjustment to the applicable threshold amounts for calendar years beginning after 2012. Exempts taxpayers whose adjusted gross income is less than the applicable threshold amount from the phase-out of personal exemptions and itemized deductions. 
 
(Sec. 102) Extends through 2013 for an individual taxpayer whose adjusted gross income is less than the applicable threshold amount the reduction in the tax rate for dividend and capital gain income enacted by the Jobs and Growth Tax Relief Reconciliation Act of 2003. 
 
Increases to 20% the tax rate for capital gains income for taxpayers whose adjusted gross income exceeds the applicable threshold amount.
 
(Sec. 103) Extends through 2013: (1) the increased American Opportunity tax credit, (2) the increase in the refundable portion of the child tax credit, (3) the increased earned income tax credit percentage for three or more qualifying children, and (4) the disregard of tax credits and refunds in determining eligibility for federal and federally-assisted programs (i.e., means tested programs).
 
(Sec. 104) Extends to taxable years beginning in 2013 a $250,000 expensing allowance for depreciable business assets, including computer software. Increases to $800,000 the threshold for a phase-out of the amount of such expensing allowance. 
 

Title II:
 
Alternative Minimum Tax Relief
 - (Sec. 201) Extends to taxable years beginning in 2012 the increased exemption from the alternative minimum tax (AMT) for individual taxpayers.
 
(Sec. 202) Extends to taxable years beginning in 2012 the offset against the AMT for certain nonrefundable personal tax credits. 
 

Title III: Budgetary Effects
 - Provides that the budgetary effects of this Act shall not be entered on either PAYGO scorecard maintained pursuant to the Statutory Pay-As-You-Go Act of 2010 or any Senate PAYGO scorecard.


Legislative actions:
action_date: 2012-07-25
text: Passed Senate without amendment by Yea-Nay Vote. 51 - 48. Record Vote Number: 184. (text: CR S5355-5356)
action_date: 2012-07-25
text: Passed/agreed to in Senate: Passed Senate without amendment by Yea-Nay Vote. 51 - 48. Record Vote Number: 184.(text: CR S5355-5356)
action_date: 2012-07-25
text: Measure laid before Senate by motion. (consideration: CR S5352-5357)
action_date: 2012-07-25
text: Motion to proceed to consideration of measure agreed to in Senate. (consideration: CR S5352)
action_date: 2012-07-25
text: Cloture motion on the motion to proceed to the measure withdrawn by unanimous consent in Senate. (consideration: CR S5352)
action_date: 2012-07-25
text: Motion to proceed to consideration of measure made in Senate. (consideration: CR S5321-5352)
action_date: 2012-07-24
text: Motion to proceed to consideration of measure made in Senate. (consideration: CR S5265-5279, S5279-5282, S5282-5298)
action_date: 2012-07-23
text: Cloture motion on the motion to proceed to the measure presented in Senate. (consideration: CR S5244; text: CR S5244)
action_date: 2012-07-23
text: Motion to proceed to consideration of measure made in Senate. (consideration: CR S5239-5244)
action_date: 2012-07-19
text: Introduced in the Senate. Read twice. Ordered Placed on Senate Legislative Calendar under General Orders. Calendar No. 467. (text of measure as introduced: CR S5216-5218)
action_date: 2012-07-19
text: Introduced in Senate