S.Amdt. 2562

1. Adds SEC. _. EXTENSION OF 2001 AND 2003 TAX RELIEF at the end of the bill

   Adds a section

   In S. 3364 · Placed on Calendar Senate

   (d) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.

   Inserted: SEC. _. EXTENSION OF 2001 AND 2003 TAX RELIEF.

   Inserted: (a) In General.--Paragraph (1) of section 901(a) of the Economic Growth and Tax Relief Reconciliation Act of 2001 is amended by striking "December 31, 2012" and inserting "December 31, 2013".

   Inserted: (b) Effective Date.--The amendment made by this section shall take effect as if included in the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001.

   Inserted: SEC. _. SURTAX ON MILLIONAIRES.

   Inserted: (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:

   Inserted: "PART VIII--SURTAX ON MILLIONAIRES

   Inserted: "Sec. 59B. Surtax on millionaires.

   Inserted: "SEC. 59B. SURTAX ON MILLIONAIRES.

   Inserted: "(a) General Rule.--In the case of a taxpayer other than a corporation for any taxable year beginning after 2012 and before 2014, there is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to 2 percent of so much of the modified adjusted gross income of the taxpayer for such taxable year as exceeds $1,000,000 ($500,000, in the case of a married individual filing a separate return).

   Inserted: "(b) Modified Adjusted Gross Income.--For purposes of this section--

   Inserted: "(1) In general.--The term 'modified adjusted gross income' means adjusted gross income reduced by the excess of--

   Inserted: "(A) gross income from a small business (as defined in section 6654(d)(1)(D)(iii))--

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   Inserted: "(i) which is not a passive activity with respect to the taxpayer (within the meaning of section 469(c)), and

   Inserted: "(ii) which pays wages to at least 1 full-time equivalent employee (as defined in section 45R(d)(2)), other than the taxpayer, the taxpayer's spouse, or an individual who bears a relationship to the taxpayer described in section 152(d)(2), over

   Inserted: "(B) the deductions which are properly allocable to such income.

   Inserted: "(2) Aggregation rule.--All persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as one employer for purposes of paragraph (1)(A).

   Inserted: "(3) Regulations.--The Secretary shall prescribe regulations similar to the regulations under section 469(l) for determining the income that is taken into account under paragraph (1)(A).

   Inserted: "(c) Special Rules.--

   Inserted: "(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.

   Inserted: "(2) Citizens and residents living abroad.--The applicable dollar amount under subsection (a) shall be decreased by the excess of--

   Inserted: "(A) the amounts excluded from the taxpayer's gross income under section 911, over

   Inserted: "(B) the amounts of any deductions or exclusions disallowed under section 911(d)(6) with respect to the amounts described in subparagraph (A).

   Inserted: "(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).

   Inserted: "(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.".

   Inserted: (b) 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:

   Inserted: "part viii. surtax on millionaires.".

   Inserted: (c) 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.

   Inserted: (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2012.

   Original wording

   At the end, add the following:

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As printed