To maintain the 100 percent FMAP for the Medicaid expansion population.

SA 2883. Mr. BROWN (for himself, Ms. Stabenow, Mr. Casey, Mr. Wyden,
and Ms. Hirono) submitted an amendment intended to be proposed to
amendment SA 2874 proposed by Mr. McConnell to the bill H.R. 3762, to
provide for reconciliation pursuant to section 2002 of the concurrent
resolution on the budget for fiscal year 2016; which was ordered to lie
on the table; as follows:

At the end of title I, add the following:

SEC. 107. FMAP FOR THE MEDICAID EXPANSION POPULATION.

Section 1905(y)(1) of the Social Security Act (42 U.S.C.
1396d(y)(1)) is amended by striking the semicolon after
``2016'' and all that follows through ``2020''.

SEC. 108. 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 VII--FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS

``Sec. 59A. Fair share tax.

``SEC. 59A. FAIR SHARE TAX.

``(a) General Rule.--
``(1) Impositition 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

[[Page S8312]]

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 2016, 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 2015'
for `calendar year 1992' in subparagraph (B) 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 the Internal Revenue Code of 1986 is
amended by adding at the end the following new item:

``Part VII--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,
2015.

SEC. 109. MODIFICATION OF LIMITATION ON EXCESSIVE
REMUNERATION.

(a) Repeal of Performance-based Compensation and Commission
Exceptions for Limitation on Excessive Remuneration.--
(1) In general.--Paragraph (4) of section 162(m) of the
Internal Revenue Code of 1986 is amended by striking
subparagraphs (B) and (C) and by redesignating subparagraphs
(D) through (G) as subparagraphs (B) through (E),
respectively.
(2) Conforming amendments.--
(A) Section 162(m)(5) of such Code is amended--
(i) by striking ``subparagraphs (B), (C), and (D) thereof''
in subparagraph (E) and inserting ``subparagraph (B)
thereof'', and
(ii) by striking ``subparagraphs (F) and (G)'' in
subparagraph (G) and inserting ``subparagraphs (D) and (E)''.
(B) Section 162(m)(6) of such Code is amended--
(i) by striking ``subparagraphs (B), (C), and (D) thereof''
in subparagraph (D) and inserting ``subparagraph (B)
thereof'', and
(ii) by striking ``subparagraphs (F) and (G)'' in
subparagraph (G) and inserting ``subparagraphs (D) and (E)''.
(b) Expansion of Applicable Employer.--Paragraph (2) of
section 162(m) of the Internal Revenue Code of 1986 is
amended to read as follows:
``(2) Publicly held corporation.--For purposes of this
subsection, the term `publicly held corporation' means any
corporation which is an issuer (as defined in section 3 of
the Securities Exchange Act of 1934 (15 U.S.C. 78c))--
``(A) the securities of which are registered under section
12 of such Act (15 U.S.C. 78l), or
``(B) that is required to file reports under section 15(d)
of such Act (15 U.S.C. 78o(d)).''.
(c) Application to All Current and Former Officers,
Directors, and Employees.--
(1) In general.--Section 162(m) of the Internal Revenue
Code of 1986, as amended by subsection (a), is amended--
(A) by striking ``covered employee'' each place it appears
in paragraphs (1) and (4) and inserting ``covered
individual'', and
(B) by striking ``such employee'' each place it appears in
subparagraphs (A) and (E) of paragraph (4) and inserting
``such individual''.
(2) Covered individual.--Paragraph (3) of section 162(m) of
such Code is amended to read as follows:
``(3) Covered individual.--For purposes of this subsection,
the term `covered individual' means any individual who is an
officer, director, or employee of the taxpayer or a former
officer, director, or employee of the taxpayer.''.
(3) Conforming amendments.--
(A) Section 48D(b)(3)(A) of such Code is amended by
inserting ``(as in effect for taxable years beginning before
January 1, 2016)'' after ``section 162(m)(3)''.
(B) Section 409A(b)(3)(D)(ii) of such Code is amended by
inserting ``(as in effect for taxable years beginning before
January 1, 2016)'' after ``section 162(m)(3)''.
(d) Special Rule for Remuneration Paid to Beneficiaries,
etc.--Paragraph (4) of section 162(m), as amended by
subsection (a), is amended by adding at the end the following
new subparagraph:
``(F) Special rule for remuneration paid to beneficiaries,
etc.--Remuneration shall not fail to be applicable employee
remuneration merely because it is includible in the income
of, or paid to, a person other than the covered individual,
including after the death of the covered individual.''.
(e) Regulatory Authority.--
(1) In general.--Section 162(m) of the Internal Revenue
Code of 1986 is amended by adding at the end the following
new paragraph:
``(7) Regulations.--The Secretary may prescribe such
guidance, rules, or regulations, including with respect to
reporting, as are necessary to carry out the purposes of this
subsection.''.
(2) Conforming amendment.--Paragraph (6) of section 162(m)
of such Code is amended by striking subparagraph (H).
(f) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2015.

SEC. 110. MODIFICATIONS TO RULES RELATING TO INVERTED
CORPORATIONS.

(a) In General.--Subsection (b) of section 7874 of the
Internal Revenue Code of 1986 is amended to read as follows:
``(b) Inverted Corporations Treated as Domestic
Corporations.--
``(1) In general.--Notwithstanding section 7701(a)(4), a
foreign corporation shall be treated for purposes of this
title as a domestic corporation if--
``(A) such corporation would be a surrogate foreign
corporation if subsection (a)(2) were applied by substituting
`80 percent' for `60 percent', or
``(B) such corporation is an inverted domestic corporation.
``(2) Inverted domestic corporation.--For purposes of this
subsection, a foreign corporation shall be treated as an
inverted domestic corporation if, pursuant to a plan (or a
series of related transactions)--
``(A) the entity completes after May 8, 2014, the direct or
indirect acquisition of--
``(i) substantially all of the properties held directly or
indirectly by a domestic corporation, or
``(ii) substantially all of the assets of, or substantially
all of the properties constituting a trade or business of, a
domestic partnership, and
``(B) after the acquisition, more than 50 percent of the
stock (by vote or value) of the entity is held--
``(i) in the case of an acquisition with respect to a
domestic corporation, by former shareholders of the domestic
corporation by reason of holding stock in the domestic
corporation, or
``(ii) in the case of an acquisition with respect to a
domestic partnership, by former partners of the domestic
partnership by reason of holding a capital or profits
interest in the domestic partnership.
``(3) Exception for corporations with substantial business
activities in foreign country of organization.--A foreign
corporation described in paragraph (2) shall not be treated
as an inverted domestic corporation if after the acquisition
the expanded affiliated group which includes the entity has
substantial business activities in the foreign country in
which or under the law of which the entity is created or
organized when compared to the total business activities of
such expanded affiliated group. For purposes of subsection
(a)(2)(B)(iii) and the preceding sentence, the term
`substantial business activities' shall have the meaning
given such term under regulations in effect on May 8, 2014,
except that the Secretary may issue regulations increasing
the threshold percent in any of the tests under such
regulations for determining if business activities constitute
substantial business activities for purposes of this
paragraph.''.
(b) Conforming Amendments.--
(1) Clause (i) of section 7874(a)(2)(B) of such Code is
amended by striking ``after March 4, 2003,'' and inserting
``after March 4, 2003, and before May 9, 2014,''.
(2) Subsection (c) of section 7874 of such Code is
amended--
(A) in paragraph (2)--
(i) by striking ``subsection (a)(2)(B)(ii)'' and inserting
``subsections (a)(2)(B)(ii) and (b)(2)(B)'', and
(ii) by inserting ``or (b)(2)(A)'' after ``(a)(2)(B)(i)''
in subparagraph (B),
(B) in paragraph (3), by inserting ``or (b)(2)(B), as the
case may be,'' after ``(a)(2)(B)(ii)'',
(C) in paragraph (5), by striking ``subsection
(a)(2)(B)(ii)'' and inserting ``subsections (a)(2)(B)(ii) and
(b)(2)(B)'', and
(D) in paragraph (6), by inserting ``or inverted domestic
corporation, as the case may be,'' after ``surrogate foreign
corporation''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years ending after May 8, 2014.
______