To provide for interest rate caps for certain Federal student loans.

SA 1778. Mr. REED (for himself, Ms. Warren, Mrs. Murray, Mr. Leahy,
Mrs. Gillibrand, Mrs. Boxer, Ms. Stabenow, Mr. Whitehouse, Mr.
Heinrich, Mr. Blumenthal, Mr. Franken, Mr. Schatz, Mr. Merkley, Ms.
Hirono, Ms. Baldwin, Mrs. Shaheen, Mr. Brown, Ms. Klobuchar, Mr. Wyden,
and Mr. Murphy) proposed an amendment to amendment SA 1773 proposed by
Mr. Harkin (for Mr. Manchin (for himself, Mr. Burr, Mr. King, Mr.
Coburn, Mr. Carper, Mr. Alexander, Mr. Harkin, and Mr. Durbin)) to the
bill H.R. 1911, of 1965 to establish interest rates for new loans made
on or after July 1, 2013, to direct the Secretary of Education to
convene the Advisory Committee on Improving Postsecondary Education
Data to conduct a study on improvements to postsecondary education
transparency at the Federal level, and for other purposes; as follows:

Beginning on page 3, strike line 9 and all that follows
through line 13 on page 5 and insert the following:
``(ii) 6.8 percent.
``(B) Rates for graduate and professional fdusl.--
Notwithstanding the preceding paragraphs of this subsection,
for Federal Direct Unsubsidized Stafford Loans issued to
graduate or professional students, for which the first
disbursement is made on or after July 1, 2013, the applicable
rate of interest shall, for loans disbursed during any 12-
month period beginning on July 1 and ending on June 30, be
determined on the preceding June 1 and be equal to the lesser
of--
``(i) a rate equal to the yield of the 10-year Treasury
note auctioned at the final auction held prior to such June 1
plus 3.6 percent; or
``(ii) 6.8 percent.
``(C) PLUS loans.--Notwithstanding the preceding paragraphs
of this subsection, for Federal Direct PLUS Loans, for which
the first disbursement is made on or after July 1, 2013, the
applicable rate of interest shall, for loans disbursed during
any 12-month period beginning on July 1 and ending on June
30, be determined on the preceding June 1 and be equal to the
lesser of--
``(i) a rate equal to the yield of the 10-year Treasury
note auctioned at the final auction held prior to such June 1
plus 4.6 percent; or
``(ii) 7.9 percent.
``(D) Consolidation loans.--Notwithstanding the preceding
paragraphs of this subsection, any Federal Direct
Consolidation Loan for which the application is received on
or after July 1, 2013, shall bear interest at an annual rate
on the unpaid principal balance of the loan that is equal to
the weighted average of the interest rates on the loans
consolidated, rounded to the nearest higher one-eighth of one
percent.
``(E) Consultation.--The Secretary shall determine the
applicable rate of interest under this paragraph after
consultation with the Secretary of the Treasury and shall
publish such rate in the Federal Register as soon as
practicable after the date of determination.
``(F) Rate.--The applicable rate of interest determined
under this paragraph for a Federal Direct Stafford Loan, a
Federal Direct Unsubsidized Stafford Loan, or a Federal
Direct PLUS Loan shall be fixed for the period of the
loan.''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect as if enacted on July 1, 2013.

SEC. 2A. SURTAX ON MILLIONAIRES.

(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--SURTAX ON MILLIONAIRES

``Sec. 59B. Surtax on millionaires.

``SEC. 59B. SURTAX ON MILLIONAIRES.

``(a) General Rule.--In the case of a taxpayer other than a
corporation for any taxable year beginning after 2013, there
is hereby imposed (in addition to any other tax imposed by
this subtitle) a tax equal to 0.55 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).
``(b) Inflation Adjustment.--
``(1) In general.--In the case of any taxable year
beginning after 2014, each dollar amount under subsection (a)
shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) 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 2012'
for `calendar year 1992' in subparagraph (B) thereof.
``(2) Rounding.--If any amount as adjusted under paragraph
(1) is not a multiple of $10,000, such amount shall be
rounded to the next highest multiple of $10,000.
``(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) 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)

[[Page S5920]]

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.''.
______