S.Amdt. 1804

SA 1804. Ms. KLOBUCHAR submitted an amendment intended to be proposed
to amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for
himself and Ms. Murkowski)) to the bill H.R. 1, to provide for
reconciliation pursuant to titles II and V of the concurrent resolution
on the budget for fiscal year 2018; which was ordered to lie on the
table; as follows:

At the end of part III of subtitle A of title I, insert the
following:

SEC. 11030. CREDIT FOR ELDERCARE EXPENSES.

(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 is amended by inserting after section 25D the
following new section:

``SEC. 25E. EXPENSES FOR ELDERCARE.

``(a) Allowance of Credit.--
``(1) In general.--In the case of an individual for which
there are 1 or more qualifying individuals with respect to
such individual, there shall be allowed as a credit against
the tax imposed by this chapter for the taxable year an
amount equal to the applicable percentage of the eldercare
expenses paid by such individual during the taxable year.
``(2) Applicable percentage.--For purposes of paragraph
(1), the term `applicable percentage' means 20 percent,
reduced (but not below zero) by 1 percentage point for each
$4,000 (or fraction thereof) by which the taxpayer's adjusted
gross income for the taxable year exceeds--
``(A) $110,000 in the case of a joint return,
``(B) $75,000 in the case of an individual who is not
married, and
``(C) $55,000 in the case of a married individual filing a
separate return.
For purposes of this paragraph, marital status shall be
determined under section 7703.
``(b) Definitions.--For purposes of this section--
``(1) Qualifying individual.--The term `qualifying
individual' means an individual--
``(A) who has attained age 65,
``(B) who requires assistance with activities of daily
living, and
``(C) who is, with respect to the taxpayer or the
taxpayer's spouse--
``(i) the father or mother or an ancestor of such father or
mother,
``(ii) the father-in-law or mother-in-law or an ancestor of
such father-in-law or mother-in-law,
``(iii) the stepfather or stepmother or an ancestor of such
stepfather or stepmother, or
``(iv) any other person who, for the taxable year, has the
same principal place of abode as the taxpayer and is a member
of the household of the taxpayer.
``(2) Eldercare expenses.--
``(A) In general.--The term `eldercare expenses' means the
following amounts paid for expenses relating to the care of a
qualifying individual:
``(i) Medical care (as defined in section 213(d)(1),
without regard to subparagraph D thereof).
``(ii) Lodging away from home in accordance with section
213(d)(2).
``(iii) Adult day care.
``(iv) Custodial care.
``(v) Respite care.
``(vi) Assistive technologies and devices (including remote
health monitoring).
``(vii) Environmental modifications (including home
modifications).
``(viii) Counseling or training for a caregiver.
``(B) Definitions.--For purposes of subparagraph (A)--
``(i) Adult day care.--The term `adult day care' means care
provided for adults with functional or cognitive impairments
through a structured, community-based group program which
provides health, social, and other related support services
on a less than 24-hour basis.
``(ii) Custodial care.--The term `custodial care' means
reasonable personal care services provided to assist with
daily living which do not require the skills of qualified
technical or professional personnel.
``(iii) Respite care.--The term `respite care' means
planned or emergency care intended to provide temporary
relief to a caregiver.
``(C) Care centers.--
``(i) In general.--Eldercare expenses described in
subparagraph (A) which are incurred for services provided
outside the taxpayer's household by a care center shall be
taken into account only if such center complies with all
applicable laws and regulations of a State or unit of local
government.
``(ii) Care center.--For purposes of this subparagraph, the
term `care center' means any facility which--

``(I) provides care for more than 6 individuals, and
``(II) receives a fee, payment, or grant for providing
services for any of the individuals (regardless of whether
such facility is operated for profit).

``(c) Dollar Limitation.--
``(1) In general.--The amount of the eldercare expenses
incurred during any taxable year which may be taken into
account under subsection (a) shall not exceed $6,000.
``(2) Coordination with dependent care assistance
exclusion.--The dollar amount in paragraph (1) shall be
reduced by the aggregate amount excluded from gross income
under section 129 for the taxable year, if any.
``(d) Special Rules.--For purposes of this section--
``(1) Payments to related individuals.--No credit shall be
allowed under subsection (a) for any amount paid to an
individual with respect to whom, for the taxable year, a
deduction under section 151(c) is allowable either to the
taxpayer or the taxpayer's spouse. For purposes of this
paragraph, the term `taxable year' means the taxable year of
the taxpayer in which the service is performed.
``(2) Identifying information required with respect to
service provider.--No credit shall be allowed under
subsection (a) for any amount paid to any person unless--
``(A) the name, address, and taxpayer identification number
of such person are included on the return claiming the
credit, or
``(B) if such person is an organization described in
section 501(c)(3) and exempt from tax under section 501(a),
the name and address of such person are included on the
return claiming the credit.
In the case of a failure to provide the information required
under the preceding sentence, the preceding sentence shall
not apply if it is shown that the taxpayer exercised due
diligence in attempting to provide the information so
required.
``(3) Identifying information required with respect to
qualifying individuals.--No credit shall be allowed under
subsection (a) with respect to any qualifying individual
unless the taxpayer identification number of such individual
is included on the return claiming the credit.
``(e) Denial of Double Benefit.--No credit shall be allowed
under subsection (a) for any amount with respect to which a
credit is allowed under section 21.
``(f) Regulations.--The Secretary shall prescribe such
regulations as may be necessary to carry out the purposes of
this section.''.
(b) Clerical Amendment.--The table of sections for subpart
A of part IV of subchapter A of chapter 1 is amended by
inserting after the item relating to section 25D the
following new item:

``Sec. 25E. Expenses for eldercare.''.

(c) Conforming Amendments.--
(1) Section 213(e) is amended--
(A) by inserting ``or section 25E'' after ``section 21'',
and
(B) by inserting ``and Elders'' after ``Certain
Dependents'' in the heading.
(2) Section 6213(g)(2) is amended--
(A) by inserting ``, section 25E (relating to expenses for
care of elders),'' after ``(relating to expenses for
household and dependent care services necessary for gainful
employment)'' in subparagraph (H), and
(B) by inserting ``, 25E'' after ``24'' in subparagraph
(L).
(d) Effective Date.--The amendments made by subsections
(a), (b), and (c) shall apply to taxable years beginning
after the date of the enactment of this Act.
(e) Offset.--
(f) Fair Share Tax on High-income Taxpayers.--
(1) In general.--Subchapter A of chapter 1, as amended by
section 14401, is amended by adding at the end the following
new part:

``PART VIII--FAIR SHARE TAX ON HIGH-INCOME TAXPAYERS

``Sec. 59AA. Fair share tax.

``SEC. 59AA. FAIR SHARE TAX.

``(a) General Rule.--
``(1) Phase-in 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

[[Page S7648]]

``(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 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 2018, 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 2017'
for `calendar year 2016' in subparagraph (A)(ii) 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.''.
(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--Fair Share Tax on High-Income Taxpayers''.

(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2017.
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