S.Amdt. 2843

SA 2843. Mr. SANDERS submitted an amendment intended to be proposed
to amendment SA 2786 proposed by Mr. Reid (for himself, Mr. Baucus, Mr.
Dodd, and Mr. Harkin) to the bill H.R. 3590, to amend the Internal
Revenue Code of 1986 to modify the first-time homebuyers credit in the
case of members of the Armed Forces and certain other Federal
employees, and for other purposes; which was ordered to lie on the
table; as follows:

On page 268, after line 19, insert the following:

SEC. 1403. EMPLOYEES ELIGIBLE FOR CREDIT AND REDUCTIONS IF
EMPLOYER'S PLAN DOESN'T COVER ESSENTIAL HEALTH
BENEFITS.

(a) In General.--Section 36B(c)(2)(C)(ii) of the Internal
Revenue Code of 1986, as added by section 1401, is amended to
read as follows:
``(ii) Coverage must provide minimum value and essential
benefits.--Except as provided in clause (iii), an employee
shall not be treated as eligible for minimum essential
coverage if such coverage consists of an eligible employer-
sponsored plan (as defined in section 5000A(f)(2)) and--

``(I) the plan's share of the total allowed costs of
benefits provided under the plan is less than 60 percent of
such costs, or
``(II) the plan does not provide coverage for at least the
essential health benefits required to be provided by a
qualified health plan under section 1302(b) of the Patient
Protection and Affordable Care Act.''.

(b) Surcharge on High Income Individuals.--
(1) 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--SURCHARGE ON HIGH INCOME INDIVIDUALS

``Sec. 59B. Surcharge on high income individuals.

``SEC. 59B. SURCHARGE ON HIGH INCOME INDIVIDUALS.

``(a) General Rule.--In the case of a taxpayer other than a
corporation, there is hereby imposed (in addition to any
other tax imposed by this subtitle) a tax equal to 5.4

[[Page S12253]]

percent of so much of the modified adjusted gross income of
the taxpayer as exceeds $1,000,000.
``(b) Taxpayers Not Making a Joint Return.--In the case of
any taxpayer other than a taxpayer making a joint return
under section 6013 or a surviving spouse (as defined in
section 2(a)), subsection (a) shall be applied by
substituting `$500,000' for `$1,000,000'.
``(c) Modified Adjusted Gross Income.--For purposes of this
section, the term `modified adjusted gross income' means
adjusted gross income reduced by any deduction (not taken
into account in determining adjusted gross income) allowed
for investment interest (as defined in section 163(d)). In
the case of an estate or trust, adjusted gross income shall
be determined as provided in section 67(e).
``(d) Special Rules.--
``(1) Nonresident alien.--In the case of a nonresident
alien individual, only amounts taken into account in
connection with the tax imposed under section 871(b) shall be
taken into account under this section.
``(2) Citizens and residents living abroad.--The dollar
amount in effect under subsection (a) (after the application
of subsection (b)) shall be decreased by the excess of--
``(A) the amounts excluded from the taxpayer's gross income
under section 911, over
``(B) the amounts of any deductions or exclusions
disallowed under section 911(d)(6) with respect to the
amounts described in subparagraph (A).
``(3) Charitable trusts.--Subsection (a) shall not apply to
a trust all the unexpired interests in which are devoted to
one or more of the purposes described in section
170(c)(2)(B).
``(4) 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 or
for purposes of section 55.''.
(2) Clerical amendment.--The table of parts for subchapter
A of chapter 1 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new item:

``part viii. surcharge on high income individuals.''.

(3) Section 15 not to apply.--The amendment made by
subsection (a) shall not be treated as a change in a rate of
tax for purposes of section 15 of the Internal Revenue Code
of 1986.
(4) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2010.
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